British Finance Minister adopts monetary and fiscal policies to deal with the impact of New Coronavirus, US Futures fell another 3%!

In Daily Market Review, English
March 12, 2020

British Finance Minister adopts monetary and fiscal policies to deal with the impact of New Coronavirus

British Finance Minister Xin Weicheng announced his first budget in office, which included the use of 30 billion pounds of fiscal expenditure to stimulate the economy and respond to the impact of the new coronavirus epidemic. It is expected that this year’s fiscal deficit will account for 2.4% of GDP. In addition, it promised to invest a total of £ 600 billion in infrastructure investment by the middle of 2025 and introduce measures to assist the business community and medical services. Taking into account the Bank of England’s sharp interest rate cuts earlier, the United Kingdom decisively adopted a two-pronged monetary and fiscal policy to save the market, and if successful, it may become a model for other governments and central banks.

 

US Futures fell another 3%!

The Trump stimulus plan did not seem to excite the market, with US stock index futures falling by more than 3%. Global easing and downward economic pressure are expected to continue to support the gold price. The market is currently expected to rise to 100% for the Fed ’s March decision to cut interest rates by at least 75 points. However, due to the collapse of US stocks, investors continue to face the pressure of realizing gold to increase margin. The stacked long positions are still too crowded. Gold rallied slightly and fell back within a short period of time. Gold is expected to maintain a wide range of shocks in the 1600/1700 range in a short time.


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