Contagion speed is key for markets to reach turning point Markets (financial cycle) are leading the economic cycle and will bottom out before the end of the coronavirus pandemic. However, they would stabilise once reassured on three points:

China has just published its PMIs (Purchasing Managers Indices) for March. The good news is that both indices are around 52, i.e. above the threshold of 50, which separates expansion from contraction, showing that the recovery in the production of goods and services in China is underway. The data should be considered carefully, however, because a return to production in March may well be counterbalanced by the slowdown in global demand elsewhere, so we cannot extrapolate a positive trend in the near future. However, the data is above the forecasts, which expected to see the PMI manufacturing index at 45, so that is good news.

Amundi is delighted to launch its daily market update podcast.

The recent action taken on the monetary and fiscal policy front  have had a positive impact on the international stock markets over the course of last week, despite the markets closing negatively on Friday 27 March. The unprecedented actions taken by the Fed, consisting mainly in unlimited quantitative easing and direct financing of large companies through the subscription of bonds by the Fed itself, act as a safety net for the entire economic system

On a day that saw an all-time record number of new weekly unemployment benefit applications, Jerome Powell, Federal Reserve Chairman, made a rare television appearance to show his support for the American people

Yesterday the Lower House of the Bundestag, the German Parliament, approved the emergency plan - announced on Monday - including: