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Vantage Point: Pandemic

The world has seen the emergence of a novel coronavirus that has infected large numbers of people in China and the rest of the world. This edition is devoted to trying to work out what the economic impact might be, and for how long it will continue.

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Weekly Market Roundup

June 1, 2020

Start your week off right with our market snapshot from the Global Economics and Investment Analysis Group.


  • Global stocks gained for the second week in a row and delivered 3.6%, the strongest since the first week of April. Returns were led by non-US developed markets, or MSCI EAFE, after Japan increased its stimulus package and a bigger than expected 750 billion euro stimulus program was proposed for the European Union. In the US, returns were led by the S&P 500 (3.0%) followed by small caps (2.9%) and the NASDAQ (1.8%) which is the only index positive YTD—up 6.2%.
  • Commodities gained led by another advance in oil (5.8%) and corporate credit spreads retreated further.
  • Interest rates were mixed and the US dollar declined -1.5% bringing the YTD gain to 2.0%.
  • China approved a plan to impose national security laws on Hong Kong despite a US declaration that the move would signal the city was no longer autonomous from Beijing.
  • US Q1 GDP was revised slightly lower to -5.0% q/q from -4.8% driven by weaker than expected business investment.
  • US new home sales beat estimates and gained slightly from the prior month to 623,000 in April. Signs of housing market stabilization would be positive for the outlook.
  • After falling sharply since February, US Conference Board consumer confidence improved in May. Despite being only a modest increase, a stabilization of deteriorating sentiment would be boost for the near-term outlook.
  • US initial jobless declined slightly from 2.4 to 2.1 million yet still remain historically elevated. Over the last 11 weeks, 41 million have filed initial claims for unemployment insurance –26% of the labor force. Continuing claims declined 3.9 million to 21.0 million.
  • Eurozone inflation fell 0.3% in May to 0.1% y/y, the lowest since mid-2016.
  • The German IFO business climate index beat estimates and improved slightly to 79.5 in May.
  • Japan industrial production was worse than expected and fell -14.4% y/y in April, the worst since 2009. Retail sales were -13.7%
  • Weekly Market Roundup Mega Cap Tech Perf Jun 1 2020


  • US ISM (Institute for Supply Management Manufacturing PMI (Monday)
  • China Caixin Composite and Services PMI (Tuesday)
  • US ISM Non-manufacturing PMI (Wednesday)
  • Eurozone Retail Sales (Thursday)
  • ECB Meeting (Thursday)
  • US Jobs Report (Friday)

Monthly Market Roundup

May 2020

Markets Disconnect from Data

  • Global stocks rallied sharply in April by 10.8% after March's worst monthly performance since the Global Financial Crisis in 2008.
  • A peak and then subsequent decline in the Covid growth rate, signs of lockdown easings, and extraordinary central bank and fiscal stimulus improved risk-on sentiment despite historically weak economic data.
  • Thanks to the Fed, financial conditions eased, yet concerns linger and could get worse if data stays weaker longer than what is currently being priced in.
  • Despite the rally in equities, US Treasury yields have yet to signal the all-clear and were largely range-bound in April.
  • Overall, markets continue to send distorting signals suggesting that risks are skewed to the downside.
Find out more

April 2020

Global stocks declined -13.4% in March, the worst since October 2008, as markets increasingly priced in an imminent global recession.

Fallout from Covid-19

March 2020

The global spread of the coronavirus and ensuing disruption to supply chains has quickly shifted the economic and market outlook for 2020.

Coronavirus Contagion

Monthly Market Roundup - February 2020


Monthly Market Roundup - January 2020


Monthly Market Roundup - December 2019


Points of View

What’s priced into markets?

What type of recovery is the equity market pricing in?

As currently priced, the market is expecting a sharp recovery in growth in 2021. However, our message is to remain cautious. Ultimately the impact on the economy and markets will be primarily determined by the course of the disease...


Read More

Government Bonds: Why we expect yields to edge higher…

Our forecasts for yields still imply a market that is too pessimistic and lowered its estimates too far. Hence, we see a higher probability of an upward drift in yields as growth stabilizes in 2020.


Read More

Global Economics and Investment Analysis Group

Meet the minds behind the research.

Shamik Dhar

Chief Economist


Alicia Levine, PhD

Chief Strategist


Liz Young, CFA

Director of Market Strategy


Lale Akoner

Market Strategist


Bryan Besecker, CFA, CAIA

Market Strategist