Fiscal Policy To Help Weather Coronavirus Crisis
Market movers today Key focus continues to be on the spreading of the coronavirus and policy responses both to contain the virus from spreading and mitigate the economic impact. US president Trump is supposed to unveil details about the economic...
World Governments Respond to Coronavirus
In the face of fears that the global economy will be shut down due to the rapid spread of the coronavirus, many Central Banks took action last week to help stimulate the economy. Central banks in the Australia, Canada, the...
Stimulus Hopes Giving Risk Appetite Some Green Shoots
Notes/Observations Risk appetite trying to find fresh legs on hopes that govts will introduce stimulus to combat the coronavirus outbreak impact on global economy (US: payroll tax cut talk; Japan: ¥430B fiscal support package; others include Thailand; Philippines support measures)...
No One Wants to Buy the Dip, Lower Oil Prices are Here to Stay
No one wants to buy the dip, Lower oil prices are here to stay, Global stimulus to send gold to record highs Stock markets in freefall and it seems unlikely central banks and governments in the short-term can do anything....
Oil Collapses as Saudi’s Declare Price War
Where do you begin on a day like today? It’s absolute carnage out there and it’s going to take a huge response from policy makers to restore order. As if policy makers and investors weren’t struggling enough to get to...
Flash Comment OPEC: Prospect Of An Oil Price War
After Friday’s collapse in OPEC+ talks, the oil market could be facing a price war. Russia and Saudi Arabia have around 2-2.5mb/d in spare capacity they could use to drive down prices. The negative demand shock from COVID-19 and a...
Assessing Global Economic Risks as COVID-19 Spreads
Executive Summary As the coronavirus spreads across the globe, it is becoming increasingly difficult to nail down the global effects of the virus and the associated economic disruptions. This report uses a simple framework to assess supply and demand-side risks...
Weekly Economic and Financial Commentary: Data Look Great, If Only It Was Still February
U.S. Review Data Look Great, If Only It Were Still February An inter-meeting rate cut by the FOMC did little to stem financial market volatility, as the number of confirmed COVID-19 cases continued to climb. The ISM manufacturing index narrowly...
The Weekly Bottom Line: BoC Shows Markets the Dove
U.S. Highlights The Fed viewed the spread of COVID-19 as having a ‘material’ impact on the economic outlook and made an emergency intermeeting rate cut of 50 basis points to proactively support the economy. A few other central banks also...
Forward Guidance: Virus Concerns Continuing to Overshadow Economic Data
The week ahead will be short on impactful economic indicators – but likely still long on concerns about the ongoing escalation in the new coronavirus outbreak outside of China. Financial markets don’t like uncertainty, and stock market indexes have been...
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