Market Overview

11 March 2020

The Different Realities of Europe and the United States

Yesterday the markets were marked by a mixed feeling that lasted throughout the day. After the markets entered a "bear market" two days ago, yesterday they started to evolve towards a recovery. However, in Europe fears about the impact of the coronavirus have returned as a result of the lack of economic stimulus. In the United States, the upward trend continued throughout the day.

In the stock markets in particular, what was observed was a reduction in the value of the main indices. In the Eurozone, the Stoxx 600 - the European benchmark index - went down by 1.14% after gaining more than 4%. On the other side of the Atlantic, the Dow Jones rose by 4.89% while the Nasdaq appreciated by 4.45% and the S&P 500 increased by 4.94%.

In the debt market, sovereign debt interest rates rose in all European countries. After a day of greater demand for these safer assets, yesterday there was a departure from them. The same has also happened in the United States.

When it comes to the Eurozone currency, its value depreciated while there was a greater demand for Dollars during a great part of the day.

Oil, in turn, recovered after the biggest drop since 1991. After Saudi Arabia revealed that it would increase its production by more than 25%, Russia said it would also play the same game and it would therefore also rise its production. On the American side, the opposite is true and it is thought that there is an effort to reduce supply in order to mitigate the fall in prices. Yesterday, despite everything, there was an appreciation of crude oil.

Gold, on a normal day of risk appetite, depreciated by 1.39%.


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Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

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