The risk-on party stays the course in the European morning
Collapse in European economic sentiment? The stock market says that is no problem.
Perhaps investors have already braced themselves after the massive plunge in the Chinese figures at the end of last month but so far they are taking the unprecedented implosions in the PMI readings so far today in stride.
European equities are also keeping higher on the day with the DAX now up by 6%. In the currencies space, the dollar is also staying pressured as we see cable now touch 1.1700.
I would argue that the market is still largely focused on the Fed move yesterday more than anything else, because this sharp drop in economic activity isn't going to be a one-off as containment and lockdown measures are still largely ongoing worldwide.
