April marked a significant recovery month, albeit with one notable exception: broadly defined commodities, which did not perform well (excluding gold, which saw a notable increase). In general, risk assets enjoyed considerable gains throughout the month.
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The Covid-19 pandemic is anticipated to persist for two years, according to a recent report: Bloomberg
Half of US states are initiating economic reopening measures: Reuters
The European Commission has called for an investigation into the origins of the coronavirus: CNBC
Russia’s prime minister has announced that he has contracted the virus: NPR
The Federal Reserve has expanded its lending program to include larger businesses: WSJ
The coronavirus crisis is reversing the global decline in poverty rates: NY Times
Despite a spike in unemployment claims, official unemployment figures likely underestimate the true numbers: EPI
US consumer spending saw its most significant drop on record in March: WSJ
Jobless claims in the US surged by 3.8 million last week: MW
Although the stock market appears to be indicating a potential reflationary trend, the latest economic data presents a contrasting perspective.
Gilead has reported promising results from its antiviral Covid-19 tests: Reuters
The upcoming US jobless claims report is expected to show a 3.5 million increase: MW
The Eurozone economy contracted by 3.8% in the first quarter: MW
Federal Reserve Chairman indicates that additional spending from Congress is essential for economic support: WSJ
China’s Manufacturing PMI experienced a slight contraction in April after significant fluctuations: IHS Markit
Royal Dutch Shell has cut its dividend for the first time since World War I: FT
A global drop in carbon emissions is projected for this year to be around 8%: IEA
In the US, pending home sales experienced their largest decline since 2010 due to the pandemic: BBG
The US GDP also fell sharply in Q1, marking the steepest decline in over a decade: NY Times
Despite negative year-to-date trends in global stock markets, China remains a leader, reporting only a modest decline as of April 28, based on various exchange-traded funds.
According to Dr. Fauci, a second wave of coronavirus is “inevitable”: CNN
The race to develop a coronavirus vaccine is broadening, with Pfizer initiating tests: WSJ
What can we expect from the Federal Reserve’s agenda in today’s policy meeting? BBG
Investors anticipate that big tech companies will emerge as leaders post-crisis: NY Times
The Eurozone’s economic sentiment experienced its largest decline on record in April: Reuters
The Richmond Fed Manufacturing Index fell sharply in April: RF
US Consumer Confidence Index has plummeted to a six-year low in April: CNBC
Home prices in the US were steadily increasing prior to the crisis in February: CNBC
Today’s US Q1 GDP report is expected to showcase a 3.8% decrease in economic output: USAToday
If one were unaware of the coronavirus pandemic and its economic repercussions, observing the S&P 500 chart might suggest that a substantial market correction was recovering, implying that equities could soon return to their previous high. However, the truth is more complex.
The Oxford Group’s coronavirus vaccine may be available as early as September: NY Times
China is reported to have near-total control over the supply of antibiotics; is America at risk?: STAT
US oil prices continue to decline due to storage limitations: MW
What options does the Federal Reserve have left after significant stimulus efforts?: CNBC
The Federal Reserve is adapting its strategy in response to the coronavirus crisis: WSJ
A surge in internet usage due to the pandemic may benefit chipmakers: WSJ
Will the US stock market look through this disappointing earnings season? BBG
The VIX Index, often referred to as the “fear gauge” for the US stock market, has fallen to an eight-week low:
Despite a rally in equity markets towards the end of the week, a risk-averse sentiment prevailed, leaving most of the major asset classes lower as trading closed on Friday, April 24. The only exception was inflation-indexed Treasuries, which saw the best performance during that trading week, as reflected in several exchange-traded funds.
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Several US states have begun reopening their economies: WSJ
Treasury Secretary Mnuchin is optimistic about a rebound in the US economy in Q3: MW
The stock market’s recent rise is seen as a bet on effective testing and treatment solutions to restart the economy: Reuters
The bond market is weighing deflation risks ahead of an upcoming Fed meeting: BBG
The surge in government spending could eventually lead to higher taxes: CIO
Consumer sentiment declined for the third consecutive month in April: CNBC
The US Composite PMI indicates a sharp contraction in economic activity in April: IHS Markit
Orders for US durable goods fell by 14% in March: MW
The daily increase in US Covid-19 deaths reached a three-week low on April 26: Johns Hopkins
The month of April reflected various trends influenced by the ongoing pandemic. While there were gains in risk assets, the economic backdrop remained challenging, underscoring the complexity of the recovery. Investors continue to navigate a landscape filled with uncertainty, balancing market optimism with real-world economic data.
