The stock markets were euphoric again yesterday. It is believed that the economic consequences of the coronavirus for western countries will be limited. Either way, the central banks would fix everything, as China’s central bank has done in recent days, is the mantra. But can central bankers also print away an epidemic with a subsequent economic standstill? Probably not. On Friday the stock markets sold off. Monday and yesterday the sharp counter-rally (Nasdaq with a new all-time high and 16% above its 200-day line). The belief that all is well again is likely to suffer at least one more severe setback. Thus, after the Friday sell-off, a second tsunami wave is rolling towards the markets. When will it arrive?
We have just reported that China may insist on the abolition of all tariffs so that the Phase 1 deal can be signed. This now seems to be confirmed: China (!) insists on the abolition […]
The purchasing managers’ index for Germany (Markit PMI; February) has just been published: Manufacturing 47.8 (forecast was 44.8; previous month was 45.3) Services 53.3 (forecast was 53.8; previous month was 54.2) Overall index 51.1 (forecast […]
Yesterday a strong sell-off on the stock markets (following a previous rally) after a report in the “Financial Times”, showing Remdisivir from Gilead Sciences as a drug against the coronavirus flopped! Obviously the WHO has […]