Market Overview

16 March 2020

Now, More Than Ever, The Market is Driven by News

After a day marked by one of the biggest falls ever on the European and American stock exchanges (it was the biggest ever in Europe), Friday was marked by a visible recovery. The reason behind this recovery was the good news about the response from various regions to minimize the effect of the coronavirus in their economies. The United States declared a national emergency and Germany revealed that there is no budget limit to fight this pandemic - there will be no restrictions on the zero-deficit rule.

In the stock market, it was possible to observe the Stoxx 600 valuing 1.43%. In the United States, the S&P 500 gained 9.29% while Dow Jones appreciated by 9.36% and the Nasdaq closed up to 9.35%.

In the debt market, however, the trend was of an increase in yields as the day was marked by a greater appetite for risk and concern regarding the spread of the virus.

The European currency again lost value against the Dollar, as the WHO declared Europe as the new epicenter of the epidemic and Donald Trump declared a state of national emergency.

With regards to oil, the day ended with its value increasing in the worst week since 2008. This effect was due to the good news that had emerged.

Gold, in turn, depreciated by 2.72% and this was the trend throughout the week with investors selling the asset in order to be able to support losses in the capital market. Also, the appreciation of the Dollar lead investors to seek less safe heaven assets.


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