Now that the reality of the coronavirus pandemic has settled in, investors are back to watching the economic calendar for relevant reports from March. The latest data will more accurately reflect the extent of the damage to the economy caused by the Covid-19 outbreak, and what this entails for the global recession that will most likely ensue.
In that light of thinking, today we expect the March retail sales report from the United States, forecasted at -8%, considering many retail businesses are non-essential and have been on lockdown for weeks.
Later in the day, there will be a decision by the Bank of Canada as to whether to cut interest rates further. But with the interest rate already at 0.25%, another slash is not expected at present.
Meanwhile, in the United States it was decided that $25 billion will be dedicated to the airline sector, so that carriers could continue to pay their employees even during this period of mass flight restrictions and cancellations. Thus, the shares of US airlines might not be as unstable as other companies’ during the pandemic.
As the lockdowns continue across the globe, experts now expect that a prolonged recession will take hold of the world even after the coronavirus is defeated. The stock markets are contracting amid the pessimism.
In terms of rough numbers, the number of coronavirus cases globally surpassed 2 million. The United States and Spain remain the two most affected countries.
