Chinese trade data improves, but fears of Covid-19 recession grow

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Hello and welcome to our continued coverage of the global economy, financial markets, the eurozone and business.

After a refreshing break for Easter, the stock markets resume their recovery – despite ample evidence that the global economy is dragged into a deep recession by Covid-19.

Asian Pacific indices rallied overnight, with the Japanese Nikkei surging 2% and the Chinese CSI 300 1.2%.

And after its best week in over a decade, the British FTSE 100 is called another 90 points. This would bring the benchmark to over 5,900 points for the first time in a month (since the dreadful plunge of March 12).

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European opening calls:#FTSE 5939 + 1.64%#DAX 10,773 + 1.97%#CAC 4,565 + 1.29%#AEX 512 + 0.86%#MIB 17,993 + 2.11%#IBEX 7,147 + 1.07%#OMX 1,542 + 2.87%#STOXX 2,938 + 1.56%#IGOpeningCall


April 14, 2020

The flood of stimulus packages and emergency cash flows from governments and central banks are encouraging investors – despite a steadily rising death toll in the United Kingdom and the United States.

As Kyle Rodda of IG says:

For the markets, it’s a question of financial conditions on the fundamentals right now. The Fed’s decision last week to open its lines of credit to a wider range of borrowers and deepen the amount of credit extended has mitigated the credit risk in the market.

There is also some relief that Opec finally agreed to cut production over the weekend – although the deal did not increase crude prices much.



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