(11 March 2020)DAILY MARKET BRIEF 1:Equities swing on Trump disappointment.

(11 March 2020)DAILY MARKET BRIEF 1:Equities swing on Trump disappointment.

11 March 2020, 09:13
Jiming Huang
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The US stocks first gained 3.5%, then erased all gains and slipped to negative, and finally rallied to close the day near 5% higher, the biggest one day jump since December 2018 on hope that US President Donald Trump would deploy ‘substantial’ fiscal measures to halt the freefall in stock markets. But Trump didn’t make any appearance.

Wild US session volatility and disappointment on Trump soured the mood into the European close and sent most Asian stock indices tumbling on Wednesday.

The FTSE (-0.09%) and the DAX (-1.41%) reversed gains to end yesterday’s session in the negative territory. The ASX 200 tanked 3.60%, Nikkei slid 2.21%, as Hang Seng gave back 0.55%. Activity in US and European futures hint that it may be another wild ride to the bottom on Wednesday.

In such a fragile market environment, Donald Trump cannot afford to remain silent for too long. The longer he waits, the larger the damages to stock markets could be.

By Ipek Ozkardeskaya

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