Friday 1 May 2020

Markets lower, euro area faces “unprecedented” contraction

Markets were mostly lower on Thursday.

The S&P 500 fell 0.9 percent and the STOXX Europe 600 tumbled 2.0 percent.

Earlier in Asia, though, the Shanghai Composite rose 1.3 percent and the Nikkei 225 jumped 2.1 percent.

The European Central Bank left interest rates unchanged at its monetary policy meeting on Thursday but said it would make long-term loans to banks even cheaper and would set up a new shorter-term liquidity operation.

Eurozone GDP fell 3.8 percent in the first quarter and ECB President Christine Lagarde said it could shrink by 5 to 12 percent this year.

“The euro area is facing an economic contraction of a magnitude and speed that are unprecedented in peacetime,” said Lagarde.

No comments:

Post a Comment