A pledge by the US central bank, the Federal Reserve, for a massive spending spree of all types of US debt failed to put the brake on the global stock market sell-off, suggesting that investors are looking for huge government spending programmes and not just market-calming initiatives by central banks.
The Irish economy is heading into recession a senior economist has warned, as official measures designed to defeat the Covid-19 outbreak hits the jobs-rich industries of tourism, hospitality, and retail.
Irish business and trade union leaders said they stand ready to work with government in a national effort to face down the Covid-19 crisis, but warn that they need more help to prevent firms from going under.
Irish bank and transport shares most exposed to the potential economic fallout from the coronavirus fell sharply for a second successive session, as an Italian official said it may need to call on the EU to offer leeway on budget targets due to the outbreak.
The Brexit gloom lifted helping boost the shares of Irish banks and property firms, as well as the owner of Paddy Power, as investors bet the risk of a crash-out Brexit had receded for the time being.
Global markets appear to have called time on the dangerous game of hardball US president Donald Trump is playing with China, as a plunge in shares, government bond yields, and the price of oil signalled his trade wars could lead to world recession.
Shares in the big two Irish banks and a handful of property shares played catch-up with the global market slump to post falls, taking stock of the fading hopes of a deal that would avoid Britain crashing out of the EU at the end of October.
The head of the ECB Mario Draghi came close to confirming that some interest rates are heading lower in September -- and a senior analyst says this will provide Finance Minister Paschal Donohoe with a ‘Draghi bounty’ and more ‘fiscal room’ in his autumn budget.