MACROSCOPE: “Relief Rally” could fizzle out as focus changes to economy and earnings
Recent weekends have brought a cascade of bad news centering around the coronavirus, resulting in huge down days for the markets on Mondays. Lately, however, the trend seems to be improving (Figure 1). Monday’s 5% gain for the TSX was its best Monday performance in months, while the S&P 500’s 7% surge was its third-best daily performance over the past decade, according to Bloomberg data.
Monday’s rally was triggered by news that the regions that have been the worst affected by the coronavirus are seeing a leveling-off in new virus cases and fatalities. In Italy, the number of new cases and deaths is finally declining, suggesting that it may have “flattened the curve”, while Spain and France are on a similar, improving trajectory. Click here to read the rest of the Macroscope.
This information has been prepared by Luft Financial. Opinions expressed in this article are those of Luft Financial only and do not necessarily reflect those of IA Private Wealth. Furthermore, this does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.
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