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Market Losses Deepen Ahead Of Fed’s First Economic Projections Of 2020

Published 11/06/2020, 06:48
Updated 21/10/2020, 09:15

Awaiting the first set of economic projections from the Federal Reserve in 2020, the markets sank further into the red as Wednesday went on.

Clearly shaken by the OECD’s own set of dire forecasts, the tentative gains that had stated the day were nowhere to be seen by the afternoon session.

The Dow Jones dropped another 250 points, at one point dipping under the key 27000 level. This as US inflation fell for a 3rd consecutive month – the latest figure came in at -0.1% – nixing hopes of a flat reading.

The Eurozone echoed the kind of losses seen in the US. The DAX was down 0.9%, while the CAC shed 0.8%.

The FTSE, on the other hand, managed to keep its decline at a manageable 0.2%. This is perhaps because of the fact that, though the OECD has the worst hit ‘developed’ nation, the organisation’s forecasts of an 11.5% contraction in 2020 was lower than the 14% slump estimated by the Bank of England.

Talking of the BoE, governor Andrew Bailey also gave the FTSE a bit of a boost, suggesting in a private event that the economy will see a faster-than-usual recovery due to the specifics of the current situation.

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