Central banks and politicians across the globe are desperately pulling whatever levers they can in an attempt to stem the macroeconomic gloom as the current health crisis continues to escalate.

With the UK now in lockdown, the UK government has announced a £350bn package of support in what is the biggest intervention in private sector business since the Second World War to help fight the economic impact of coronavirus.

Significant financial measures are widespread, with Germany signing-off on a €750bn stimulus package, while the US Fed has announced that it will carry out open-ended Treasury and mortgage-backed securities buying in whatever amount that is needed to keep the cost of funding down.

Global financial markets remain volatile in the face of what will be a disastrous first quarter earnings season, with some estimates suggesting US GDP could decline 30%. Analysts at Saxo

Bank said that they ‘would not be surprised to see earnings per share decline by 50% to 70%’ over the next few months, which chimes with oil prices below $30 a barrel.

But much of this is already priced in to equities  so the earnings releases will mostly be about more detail on the impact on the ground and outlook if a company dares to give one.

‹ Previous2020-03-26Next ›