|Data for week commencing 04 May 2020|
Stock market optimism prevails in the US, with all major indexes more than 1.5% higher overnight, despite the news that 20.5 million jobs were lost in April! The jobless rate went from 4.4% to 14.7%, as 20.5 million jobs disappeared. Apart from the market’s reaction, the only good news was that economists actually expected an even worse result, with the consensus being that 21.5 million jobs would have been lost because of COVID-19’s impact on normal economic activity.
This share market positivity, amidst what should be gloom, can only be linked to the gradual opening up of the US economy, which clearly looks more aggressive in some states than what we’re seeing here. “You have investors that seem to be able to look through the tsunami of negative economic data and earnings and towards the potential for a gradual reopening of the economy,” said Art Hogan, chief market strategist at National Securities to CNBC overnight.