Daily Report

25 de Março de 2020
Daily Report 25.03.2020
  • Market sentiment surged ahead of the announcement that U.S. Democrats and Republicans struck a deal on a $2tn rescue package, which amounts to ~10% GDP (the U.S. Congress could pass the bill as soon as this Wednesday). Yet, yesterday's EU finance ministers meeting ended with no agreement on a EU-wide strategy to fight the covid-19.
  • Global stocks registered their biggest one-day gain in many years. U.S.: S&P 500 since October 2008, and DJIA since 1933. Europe: Eurostoxx 50 since 2010 and Stoxx 600 since 2008. Commodities and sovereign yields recovered some ground and safe-haven pressures on the USD eased, leading to a recovery among other AE and EM currencies.
  • On the other hand, the collapse in March's first sentiment indicators was in accordance with the view that the covid-19 will temporarily sink the global economy into a recession. Markit's Composite PMI plummeted to record lows of 31.4 points in the euro area (37.2 in Germany and 30.2 in France) and an all-time low of 40.5 in the U.S.