Most major stock indices across Europe and Asia are in the red, although US futures are now pointing to gains when trading begins in New York later today.
It remains to be seen whether US equities can prolong its nascent bull market, having climbed by over 20 percent since March 23, as uncertainties remain over how the depressed global economic outlook would ultimately feed into corporate earnings moving forward.
Policy paralysis leaves Euro on slippery slope
The Euro is now weaker by about 0.4 percent against the US Dollar, with EURUSD dipping further below the psychologically-important 1.09 level. The Euro’s weakness is, in turn, allowing the Dollar index (DXY) to reclaim the 100-handle, given that the Euro carries the most weight in the DXY.
Despite holding a 16-hour teleconference, European Union finance ministers are struggling to agree on how best to support the Eurozone economy amid the coronavirus-induced crisis. Such indecision is set to erode investors’ confidence that the bloc can be adequately supported, with the EU now on the brink of facing its deepest recession in its history. Unless concerted government support measures can be rolled out soon, markets may be willing to allow the Euro to explore more of its downside versus the Greenback amid the glaring policy uncertainties.
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