Stocks lower again

The main exchange rates are broadly steady this morning. The euro  is trading at around $1.1750 against the dollar and at about 90p against sterling, having lost ground against both earlier in the week, while the pound continues to hover in and around $1.30 against the US currency

Stocks had a pretty bad time of it yesterday as coronavirus and other concerns weighed on sentiment with both US and European indices down between 3% and 4%. Somewhat surprisingly though, core bond yields were largely flat on the day

The ECB meets today but, while it has said further stimulus for the economy probably will be required, the market expects policy to remain on hold with action more likely to come at the final meeting of the year in December. That said, with the recovery running out of steam and inflation running so far below target, one wonders why it should hold off for another six weeks

A first estimate of third quarter GDP in the US is scheduled for release today. After a sharp fall of 9% in the second quarter, the consensus expects the economy to have rebounded quite strongly in the third quarter as GDP is forecast to have increased by around 8% or so

Other data due for release include the Economic Sentiment Indicator in the Euro Area; mortgage approvals in the UK; and jobless claims in the US