Markets Update Tuesday 31/03/2020 – Terrible March

Frankfurt – 31/03/20 Terrible March According to the International Monetary Fund (IMF), Europe’s economy is facing a severe recession this year due to the coronavirus pandemic. This is now a certainty given the widespread shutdown of public life, the director of the IMF’s Europe department, Poul Thomsen, wrote in a blog post. For every month in which numerous sectors in …

Markets Update Monday 30/03/2020 – A little bit of hope?

Frankfurt – 30/03/20 A little bit of hope? At the weekend, the corona crisis intensified further. US President Donald Trump prepared the Americans for dramatic casualty figures. If we succeed in limiting the death toll to 100,000, “then we have all done a good job together,” he said on Sunday. According to the John Hopkins University, more than 34,000 people …

Markets Update Friday 27/03/2020 – Billions not enough?

Frankfurt – 27/03/20 Billions not enough? The USA has now overtaken China in terms of corona case numbers, becoming the epicentre of the virus crisis. Before the weekend, many stock exchange traders played it safe and took no risks. After a three-day rally, there was profit-taking and renewed waiting for bargains. Besides, there was a collapse in US consumer confidence. …

Markets Update Thursday 26/03/2020 – Buckle up

Frankfurt – 26/03/20 Buckle up It was again a turbulent day on the international stock exchanges, which amazed even experienced market participants.  The corona pandemic is hitting the US job market in record speed. Last week, 3.283 million Americans made their first application for unemployment benefits, according to the Labour Ministry in Washington on Thursday. The number has thus increased …

Markets Update Wednesday 25/03/2020 – Worse than the GFC

Frankfurt – 25/03/20 Worse than the GFC The Ifo Business Climate and the Purchasing Managers’ Index have slumped to an unprecedented extent due to the corona crisis. Chief economists now see the economy in worse shape than it was during the financial crisis. In March the Ifo Business Climate Index fell to 86.1 points, down from 96.0 points in the …

Markets Update Tuesday 24/03/2020 – Buy

Frankfurt – 24/03/20 Buy The current situation is still not for the faint of heart because today there were again dramatic fluctuations on the stock markets. Today, however, for a change, the stock markets have risen more than they have in over ten years. But the crisis around the coronavirus is still far from over. Investors seem to have regained …

Markets Update Monday 23/03/2020 – Gold boom is back

Frankfurt – 23/03/20 Gold boom is back The first trading day of the new trading week was also not for the fainthearted investor. However, fear of a massive recession continues to run rampant in the financial markets. Commerzbank’s economists expect the US economy to contract by 8 per cent in the spring quarter. This is likely to lead to a …

Markets Update Friday 20/03/2020 – Risk on – Risk off

Frankfurt – 20/03/20 Risk on – Risk off The fact that today the so-called covenant of witches was in force was almost completely forgotten in the current exceptional situation. As a result, futures contracts and options on the major stock indexes expired this Friday on the derivatives exchanges. The expiration of these futures contracts could, therefore, explain the slight recovery …

Markets Update Thursday 19/03/2020 – “Whatever it takes…”

Frankfurt – 19/03/20 “Whatever it takes…” In the fight against the economic consequences of the coronavirus pandemic, the European Central Bank has announced an emergency bond purchase programme worth 750 billion euros. This will involve public and private sector securities, as the ECB surprisingly announced on Thursday night. With the purchase programme, the ECB wants to help prevent further distortions …

Markets Update Wednesday 18/03/2020 – Dark

Frankfurt – 18/03/20 Dark Not at all slowly, but surely it is getting darker and darker on the international stock exchanges. Uncertainty about the consequences of the crisis triggered by the novel coronavirus remains exceptionally high and continues to weigh on the stock markets today. Numerous economists assume that the global economy will slide into recession because of the pandemic. …