Market Updates

US/China Trade Tensions Resurface. More COVID-19 Lockdowns Lifting. Earnings Season Nearing an End in Europe. This market update tackles the above headlines and more.

Global stocks have recovered more than half of the selloff triggered by the coronavirus pandemic since late March – alongside a sharp contraction in economic activity and corporate earnings.

A decision by the German constitutional court last week could potentially undermine the independence of the European Central Bank (ECB) – and threaten to fuel fragmentation within the euro area in the long run.

COVID-19 Lockdowns Loosen Gradually. Some Central Banks Hint at Further Support. US-China Trade Tensions Bubble Back Up. This market update tackles the above headlines and more.

COVID-19 Lockdowns Starting to Lift. Earnings, Economic Data Reflect Fallout. German Court to Rule on ECB Bond Purchases. This market update tackles the above headlines and more.

Global economic activity is being frozen to stem the coronavirus pandemic. Yet implications for asset prices will depend on the cumulative impact of the growth shortfall over time. BlackRock believe that policy actions to cushion the impact of virus shock are nothing short of a revolution.

Last week global equities were weaker overall on what turned out to be a rather interesting week in terms of newsflow. The MSCI World Index finished down 1.5%, the S&P 500 Index was down 1.3%, the STOXX Europe 600 was down 1.2% and the MSCI Asia Pacific was down 2.3%. Headlines remain mixed as we progress towards some kind of loosening of the COVID-19 lockdowns.

Global economic activity is being frozen to stem the coronavirus pandemic. Yet implications for asset prices will depend on the cumulative impact of the growth shortfall over time. BlackRock believe that policy actions to cushion the impact of virus shock are nothing short of a revolution.

It was a quiet start to last week, with a number of markets closed on Monday for the Easter holiday. Equity markets moved higher, which largely reflected investor focus on the incremental positives regarding the COVID-19 situation despite the fundamental backdrop still looking both grim and precarious.

BlackRock have turned more cautious on emerging market (EM) local debt despite depressed valuations after recent selloffs. Some EMs have allowed their currencies to weaken to help absorb the economic shock, and we see a risk of further currency declines in selected EMs that could wipe out coupon income.