UK and European markets follow US lower

UK and European markets follow US lower

UK and European markets are lower this morning after a sharp sell-off in the US. Tech giants Apple and Facebook reported their quarterly earnings yesterday and subsequently fell. Facebook said there was “significant uncertainty” in the outlook for this year.

Concerns are also rising regarding the “underwater” short positions held by many hedge funds who may be forced to sell equities and raise cash to cover the losses. It was noted that yesterday’s trading volume in the US was the highest for a single day since 2007.

In Europe the row continues between the EU and Astrazeneca with the EU accusing the company of utilising European funding but giving the UK priority.

In the US the Fed left its policy and QE program unchanged. Fed Chair Jerome Powell asserted that their policy would be to continue providing support while the pandemic continued and until “substantial further progress” was made towards its targets.

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