Market Wrap – Amazon news fails to spook markets

The main market mover during the US trading session was the VIX and the US dollar, as both traded down as market moves slowed down and greenback bashing ramped up.

Traders factored in balance sheet expansion from the Fed in the form of QE light last week, providing ample reason for sterling to trade at a one month high and the euro to rise against the buck.

ECB President Christine Lagarde spoke during the US session, as she answered questions on the recent rate hike and banking tension as she said that “we are very confident that capital and liquidity positions of the euro area banks are well in excess of requirements.”

And “financial tensions might dampen demand, do some of the work that would otherwise be done by monetary policy. Without tensions, we would have indicated that further hikes would be needed.”

ECBs Centeno was also speaking and said “the latest developments in European banking sector give us confidence in the decisions taken”. Remember, the ECB raise rates by 50 basis points last week despite the banking crisis in Switzerland and in the US.

The EURUSD traits trades near the high for the day at 1.0730 on the back of those speeches. Risk sentiment failed to dampen also, despite more bearish economic news.

Amazon announced that it to cut another 9,000 jobs across its global business, mostly in its cloud services, advertising and Twitch livestreaming units, the internet retailer announced on Monday.

CEO Andy Jassy, said in a letter to workers that the company had added substantial amount of staff in the past few years, but the uncertain economy has forced it to choose cost and headcount cuts.

In UK specific news to Amazon it was also revealed separate plans to shut three UK warehouses and seven delivery stations, affecting more than 1,200 further jobs.

This announcement comes amidst the latest round of lay-offs in the tech sector. This is not a good sign for the overall health of the global economy.