End of the bull run
Today’s news headlines:
- ‘Dash for cash is on as corporate titans draw down credit lines’. The viral pandemic and plummeting oil prices are putting corporate America under its biggest test since the financial crisis. Yesterday, word leaked that several prominent companies were maxing out credit lines before cash disappears. Although many would argue the massive excess reserves that banks are holding can withstand the pressures, the pace at which sentiment has soured is alarming. (Bloomberg)
- ‘Trump suspends travel from Europe to the US’. Donald Trump has introduced a 30-day travel ban on several European nations to reduce the spread of the coronavirus. The ban, which is already in place for China and Iran, will exclude Ireland, the UK and other nations outside the Schengen common visa area. (Financial Times)
Today's events, rates, and data
Global stocks extended their decline overnight, officially ending the stock market’s biggest-ever bull run. The Japanese Yen climbed, and bond yields ticked lower after Trump announced a European travel ban. Futures pointed to a 7.0% decline in European stocks on Thursday’s open.
At 10am, Eurozone Industrial Production is expected to post 1.5% growth up from -2.1% previously.
At 12:30pm, US Core PPI is forecast to show 0.1% growth while the broader PPI measure is predicted to come in at -0.1%.
At 12:45pm, the European Central Bank will update monetary policy with a press conference to follow. Markets are widely expecting a ten basis point cut along with other expansionary measures.