Rolling coverage of the latest economic and financial news
- Latest: Pound falls to $1.3620, lowest since February
- FTSE 100 opens higher after Monday’s selloff
- Japan’s Nikkei has hit six-month low this morning
- Bitcoin drops below $30,000
- Yesterday, Wall Street hit by Covid-19 fears
Wall Street is set to claw back some of its losses when trading begins in under two hours.
The Dow Jones industrial average is up around 200 points in pre-market, having slumped by 726 points yesterday….
Dow futures bounce 200 points higher after biggest fall in 8 months https://t.co/dsbw7wSw9O
Bloomberg have a good take on yesterday’s stock market losses.
They explain how economic slowdown fears sparked a heavy selloff — with investors worrying that we’ve reached ‘peak growth’, and fretting over the durability of the recovery.
Deutsche Bank’s George Saravelos said the market is hedging for “secular stagnation 2.0,” with consumers cutting back demand. A quantitative Danske Bank model, meanwhile, painted “a clear picture of a peak in the global industrial cycle.”
Nomura’s Jordan Rochester says markets are “pricing a global growth slowdown.”