• US consumer confidence plunged to record low levels
• Many countries plan to ease coronavirus-induced lockdown measures in coming weeks
European indices extended yesterday gains, as sentiment has been supported by news that governments across the globe have announced plans to gradually lift restrictions in coming weeks, including Italy and New York, the most affected regions in the world. Among single stocks, Santander rose near 5% despite the bank posted an 82% loss in Q1 as overall loan-loss provisions rose 80% after the bank set aside €1.6 billion to offset the impact from Covid-19. UBS shares rose after the company reported 40% higher profit. German financial services company Wirecard dropped over 20% after it published results of an investigation by auditor KPMG. DAX 30 gained 1.3 %, CAC40 advanced 1.4 %, FTSE100 finished 1.9 % higher.
Despite optimism regarding further relaxation measures oil swung between gains and losses during today’s volatile session, as investors remained concerned about storage capacity.
Fed decision on interest rates and Chairman Powell press conference will be the main events scheduled for tomorrow although expectations are low for more central bank easing. However investors should keep an eye out for comments from Chairman Powell about how long the Fed expects the recession will last. Earlier investors will also get to know CPI figures from Australia and advanced GDP reading from the US. Oil traders will be looking at inventory numbers this week, in particular the build at Cushing, Oklahoma, the WTI delivery hub. On the earnings front Microsoft, Facebook, Tesla, Samsung, MasterCard, Boein Co., Ebay, YUM! Brands Inc., Spotify, Deutsche Bank will report their quarterly results.
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