The falls will return this Thursday to Europe (futures: -1.3%) after the steep declines of the last session on Wall Street (Dow Jones: -1.9%; S&P: -2.37%; Nasdaq: -3.02%). Jerome Powell, Fed Chairman, asked this Wednesday that the US Government launches a new round of stimulus on the world's largest economy. From the Federal Reserve they feel alone as Republicans and Democrats lengthen their negotiation for months and is unable to reach an agreement on another package of measures to alleviate the effects of Covid-19.
"The main problem with the Federal Reserve is that American politicians They seem more interested in fighting an electoral campaign than in approving a new stimulus plan that it would help the American people, and this much more pessimistic assessment seems to have once again undermined sentiment in what is proving to be a very fickle investment climate, "explains Michael Hewson, chief analyst at CMC Markets in London.
This slide is expected to translate into a weaker start for European stocks this morning, after Asian markets also had a poor day, although the increased tension between North and South Korea for the murder of a South Korean official in North Korea does not help either.
In Europe, after the PMI of last day, this Thursday the German IFO will be known. Experts acknowledge that the need for fiscal measures is increasingly evident after looking at some recent economic data, highlighting the "shortcomings" shown by the German economy, among others. They also explain that the IFO survey probably reinforces the idea that Germany is not doing well, given the recent changes that have been made in the way it is calculated. Now the business climate survey includes a much larger share of the services sector, which means that the slowdown seen in the latest PMIs should also be reflected in the survey.
As for the situation with the coronavirus, the number of cases reported daily in the United Kingdom continues to increase. The country announced yesterday 6,718 cases, with an increase of 1,252 from Tuesday. Meanwhile, two German government ministers, Heiko Maas and Peter Altmaier, are now in quarantine after close contacts received positive coronavirus tests.
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