Flying Blind Into London Open
We are flying blind into the London open with the in circuit breaker lockdown mode again.
But with Short-seller restrictions and even market closure getting bandied around one thing, that’s for sure, life as we knew it is not about to return to normal anytime soon.
The many restrictions on international travel, social interactions, and intra-country transit seem likely to come, which will eat away and any level of existing economic growth. With equity and especially markets at the center of the traders’ bearish interests, we should expect those markets to take on much more pain before gain.
As for the London open, it looks to be more of the same as the UK and EU markets buttress for another down day.
The FOMC has acted early and decisively, following up a in the fed funds rate on Mar. 2 with a 100bp reduction down to the zero-bound overnight.
But the statement perfectly illustrates how…