Nationwide lockdown

Today's news headlines:

  • ‘Germany won’t blink on fiscal stimulus until crisis hits home’. Germany – the most fiscally equipped European nation – is unlikely to boost spending to curb the economic downfall of COVID-19 unless the virus significantly hits home. Economists suggest German policy intervention will be ‘reactive rather than proactive’. (Bloomberg)
  • ‘Italy goes into nationwide lockdown as virus numbers spiral’. Italy has become the first nation to attempt a nationwide lockdown to stop the spread of the coronavirus. Businesses have called for the government to offer guarantees and investment to support a frozen economy. (Bloomberg)

Today's rates and data 

  • Overnight, oil prices found a floor and bounced back from yesterday’s lows, supporting the Russian Rouble in the process. Equities stabilised along with sovereign debt yields, but the risk of a further sell-off in risk assets has not died out. Equity futures point to an uptick in indexes across Europe and the US today.

Today's data

  • French industrial production for January missed expectations, coming in at 1.2%, but improved from December’s -2.8%. 
  • Italian Industrial Production is predicted to bounce back from December’s -2.7% growth, coming in a 1.6%.
  • Eurozone GDP growth is forecast to show a modest 0.1% expansion in the final quarter of 2019.

Interbank rates:

GBP/USD: $1.3040
GBP/EUR: €1.1480
EUR/USD: $1.1350