Asian stocks take a break
Pressure has been taken of the Asian stocks on April 15. At the same time new forecasts warn of the worst recession since the time of the Great Depression.
Chinese authorities expanded its relief measures. The most notable move is the reduction of a key medium-term interest rate to 2.95% - a new record low. Somewhat unexpectedly, it improved the MSCI’s Asia-Pacific index has gone up 0.2%.
At the same time, Shanghai blue chips have lost 0.3%. Nikkei dropped 0.2%,, negating some of its 3% rise of the last session. E-Mini futures for the S&P 500 have gone down 0.5%. FTSE an EUROSTOXX 50 futures have remained mostly flat.
Meanwhile, according to the World Economic Outlook report published by IMF, world’s GDP can reduce by 3% in 2020. This is the worst recession since the time of the Great Depression. Frech GDP is predicted to lose 8%. UK has stated that its budget deficit might surpass 100 billion pounds.
The chief economist of JPMorgan Bruce Kasman has stated, that the recession will heavily impact the corporate revenue. According to their projections, profits around the world might drop 70%.