The German economy is reported to have contracted 2.2% in the first quarter 2020, the worst period in 11 years, according to the Federal Statistical Office.
The decline was worse than the 2.1% drop expected by economists. GDP from the fourth quarter was revised down to a -0.1% decline from a previous estimate. This data suggest the German economy entered in a technical recession.
Other market news
U.S. markets closed up Thursday even after job data came in worse than expected. The DOW, for example, climbed form an intra day low of around 22780 to close up at 23625. That’s over 800 point move from intra day low to high and with more bad job data news. Banks are accredited with pushing markets up yesterday.
EU
European stocks opened higher Friday, lifted by a strong finish on Wall Street as well as data showing better than expected Chinese industrial production.
Eurozone GDP contracts by 3.2%
On Friday 15th May 2020 – Slovenia became the first European country to declare an end to its coronavirus pandemic. Really?
China
China reported rising industrial production as factory output rose but also reported falling consumer spending in April.
Latest figures appear to suggest that unemployment increased in China as the coronavirus fallout continued.
U.S.
An unprecedented 20% of U.S. workforce now unemployed – that’s some 36 million out of work in just 8 weeks.
Retail sales plummet a record 16% in April amid a coronavirus induced spending slump. Retail sales tumbled in every sector apart from online shopping.
U.S. industrial output stumbles in April with a dramatic 11.2% decline led by manufacturing.
The U.S. – China trade deal is attracting more attention as reports surface suggesting the U.S. blocked semiconductor shipments to Huawei and that China threatened to ‘investigate’ U.S. companies such as Apple and Qualcomm if further action is taken. However, It is also reported that other elements of the phase 1 trade agreement are being met by China.
Gold
Gold climbing again possibly on fears of a virus ‘second wave’ impacting equities. I don’t know so much about a ‘second’ wave – I’m not so sure we have finished with the first yest. Gold at $1735 – Friday 10:30 BST
Global downturn
A report released by ADP suggests the coronavirus global economic cost could be between $5.8 trillion and $8.8 trillion (that’s a big gap). And how many trillions has the U.S. spent so far..?
Market moving news to watch Friday 11th May 2020
Germany – GDP data due Friday at: 07:00 BST.
European Union GDP data due Friday at: 10:00 BST.
U.S. – retail sales data due Friday at: 13:30 BST.
U.S. – consumer sentiment data due Friday at: 15:00 BST.
Market moving news to watch due Monday 18th May 2020
Japan – GDP data due for release overnight.
One to keep an eye on Tuesday – U.S. Fed’s chair Powell testifies 15:00 BST