The biggest loser

‘Wall Street rallies for third day as stimulus cheers investors’ – US stocks were undeterred by an unprecedented surge in jobless claims as the benchmark S&P 500 index rallied 6.2%. The catalyst for a third consecutive day of gains, was optimism that the $2tn stimulus package, cleared by the US senate, would go to a vote in the house of representatives as early as Friday. Investors were also buoyed by Federal Reserve chairman Jerome Powell’s comments that the US central bank would not run out of ammunition in supplying the economy with liquidity. (Financial Times)

‘EU Leaders struggle to find way forward with economy tanking’ – Unlike the UK and US, European leaders are yet to agree on a concrete strategy to combat the fallout of the deadly coronavirus. A video call was expected to result in the creation of credit lines from the regions bailout fund to keep borrowing costs low while regional governments ramp up spending but after six hours of talks, no agreement on the wording of the communique was approved. (Bloomberg)

Overnight, the US overtook China as the nation with the most coronavirus infections according to official data. US and European equity futures fell as investors called a halt to a three-day rally. Both risk assets and havens rallied, including oil, base metals, treasuries and the yen. The Dollar was the big loser as it heads for its worst week since 2009.

Today's events

US Core PCE Price Index – 12.30pm

Revised University of Michigan Consumer Sentiment – 2.00pm

GBPUSD: 1.2190

GBPEUR: 1.1063

EURUSD: 1.1020