The Asian stock market saw a rise in valuations influenced by the Chinese trade data. The markets in China have been able to cope up with the coronavirus crisis a little as it has started some of the business sectors which had also facilitated the economy of other Asian countries who are also trying to come up with measures to minimum the losses to the industry.
Analysts and experts are of the opinion that the world economy was on the verge of facing a major downturn but owing to the slowdown in the penetration of the virus in some of the major economies, there has been a relief.
“While a couple of tail risks appear to be moderating, markets are not out of danger as the
impending activity and earnings growth hole in the global economy appears to be larger than we first thought,” Perpetual analyst Matthew Sherwood wrote in a note.
“In the absence of COVID-19 vaccine we seriously question how much of the economy can re-open without threatening flare-ups in virus case numbers”, he added.
Wall Street indexes ended mixed on Monday with the Dow and S&P 500 falling while a 6.2% gain in Amazon shares helped the Nasdaq end higher. Britain’s finance minister told colleagues the UK economy could shrink by up to 30% this quarter due to the coronavirus lockdown that has shuttered businesses.
Talking about the struggling global demand, oil prices barely reacted to a global deal to cut output by a record amount of nearly 10% of world supply. U.S. crude was up just 27 cents at $22.68, well under its January peak of $63.27.
In currencies, the dollar continued to extend losses on the back of the U.S. Federal Reserve’s massive new lending programme. The greenback was a touch weaker against the Japanese yen at 107.62. The euro was up 0.3% at $1.0945. The risk-sensitive Australian dollar jumped 0.6% to $0.6420.