We are expecting another volatile week in the financial markets as the cases of coronavirus continue to rise and economic data reveal the outbreak on the global economy. As a whole, the fundamentals this week will be moving around the measures and interventions of the central banks and the governments.

Europe:

On Tuesday, a press conference with ECB Governor Christine Lagarde is expected, which could be crucial. It is expected to propose additional measures to the central bank’s response to the crisis.

In addition, many central banks and governments are becoming more proactive in their political decisions – choosing to make announcements outside scheduled meetings. As a result, the forecast for the coming week is neutral. Investors need to monitor the pressure of the funding of the dollar, the actions of central banks and governments, and the development of the coronavirus to see which direction the market is headed.

USA:

It expects to witness another week of price activity in the US markets. Against the backdrop of volatility in the market, the VIX index began to register lower values ​​after significant intervention by the Fed and the government over the past week. The decrease in VIX indexes can be considered a positive sign, signaling that the market is not in its initial state of over panic, but rather of acceptance. Further price declines may be observed, but if the VIX continues to decline, a reassurance is expected.

On Thursday, the Department of Labor will release Unemployment Insurance Weekly Claims. The consensus is initial claims will increase to 750,000, but that is way too low. Based on early reporting from various states, initial weekly claims will probably be several million this week. The all time high for initial weekly unemployment claims, Seasonally Adjusted, was 695,000 in Oct 82. The high during the great recession was 665,000 in Mar 09.

Market participants will pay close attention to the quarterly earning reports of Nike, which will be released on Tuesday. Nike is expected to report a profit of 58 cents per share on revenue of $ 9.87 billion.


 Junior Trader Radi Djuma


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