The International Monetary Fund (IMF) advocates targeted measures to aid households, businesses and financial markets that have run into difficulties from the economic damage caused by the coronavirus. On the IMF website, chief economist Gita Gopinath displays the efforts of the Italian government as an example. The Italian authorities have stretched deadlines for paying taxes in certain cases. Gopinath mentions paid sick leave and family leave as possible measures for China and South Korea, so that workers with symptoms can stay at home without fear of losing their jobs.
Stock exchanges around the world dropped substantially on Monday. Investors reacted with concern to the sharp decrease in oil prices after Saudi Arabia suddenly announced to increase oil production. In addition, the developments surrounding the coronavirus caused extra vigilance. On Wall Street, the S&P 500 fell by 6.2% on Monday. In Europe, the AEX-index decreased with 7.7% in Amsterdam and the stock exchanges in Frankfurt, London and Paris lost up to 8.4%.
American president Donald Trump consulted with his economic advisors on Monday on measures to mitigate the negative impact of the coronavirus on the economy. In a press conference subsequent to these consultations, Trump vowed to support the economy of the United States during the expansion of the coronavirus. The US government has already allocated more than USD 8 billion to withstand the spread of the virus. The U.S. central bank announced on Monday that more funds have been made available through daily overnight repo operations. This week, the Fed will provide at least USD 150 billion through these repo operations. Last week the repo operations amounted to USD 100 billion.
The 6M Euribor is unchanged at -0.43% compared to previous business day. The 10Y Swap decreased with 5 basis points to -0.31% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
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