Today’s news headlines:
- ‘Europe gets serious about lockdowns as Italy slows deaths’. Europe, which is now the epicentre of the virus, scrambles to find ways to mitigate the social and economic impacts from the coronavirus. It was announced last night that the UK are in lockdown, and Italy has finally seen a slow down in its death rate. (Bloomberg)
- ‘Fed unleashes unlimited Treasury purchase plan’. The Federal Reserve made a historic step to include corporate debt in their latest quantitative easing programme, as well as an unlimited amount of government debt. The announcement came as the Trump administration and congress failed to agree on a $2 trillion fiscal package to support the US economy. (Financial Times)
Today's events, rates, and data
US and European futures rebounded overnight, as global indices hit their lowest levels since 2016, while Treasuries edged lower. The US Dollar Index extended its fall, trading around 1.5% off Friday’s peak on London open. The Euro and the Pound climbed over 1% against the US Dollar from last nights lows.
UK, French, German and Eurozone Purchasing Manager’s Index (PMI) readings are all expected to show severe contraction, with the Eurozone Composite expected to read 38.8 this morning. US PMI’s are forecast to show a similar reading indicating contraction, although they are expected to outperform today’s European data release.