Risk Remains Wobbly
Markets will have a lot to tussle with over the week ahead, so there has been less demand for equities in Asia today as traders don’t want to run to far ahead of the economic realities as caution is the most notable pattern.
The easing of the lockdown in Wuhan, the epicenter of the coronavirus outbreak, has sent a very positive signal to the world that China’s measures have been effective in containing the virus and domestic activities are slowly returning to normal. But the US is still in the acceleration phase of the infection spread, and the UK case curve is steep but easing. Now the most imminent challenge facing policymakers is a workable exit strategy that will prevent long-lasting global economic depredation.
White House is moving to reopen the US economy as early as May 1. Still, top officials have no solid plan that will allow Americans to resume work out of harm’s way as the coronavirus pandemic rages. The markets don’t like this rush to…