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Euro area consumer confidence fell by 5 points in March – the sharpest fall on record. Along with other bleak surveys published this morning, it was largely ignored by investors. There is a growing acceptance that the world has suffered a ‘sudden stop’ in economic activity. Backward-looking data may take something of a back seat over the coming days and weeks. What matters now is: evidence on the spread of the disease; efforts towards finding a vaccine or an effective treatment and the response of policymakers, which needs to be both rapid and overwhelming.
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