Sentiment this week has been closely tied to the ebbs and flows of the oil market. WTI managed another staggering rally on Thursday, jumping 19.7%, whilst Brent added 4.7% following a timely exchange of threats between President Trump and Iran. However, there are signs of the rally in oil tiring, which perhaps isn’t that surprising given the slew of dire data in the previous session. Data releases across the globe illustrated the devastating effect that the coronavirus outbreak is having on the world economy.
Whilst the Pound had almost been immune to the eye watering data in the previous session that is not the case this morning. Yesterday, the UK composite PMI dropped to a record low of 12.9, the pound still finished the session on positive ground.
EU Summit Failings
Adding to the gloomy mood in the market was the Eurogroup leader’s unambitious conclusion to the EU Summit. The leaders failed to agree on a broad and imminent rescue package leaving the Euro struggling to find buyers. Despite extensive discussions the group only approved previous plans for a limited package whilst kicking the can down the road for any larger financial response in June. The euro continues to hover around a monthly low versus the US Dollar. Traders will now look ahead to IFO Business sentiment data.