U.S. futures are set to pierce their ceilings as the are trading higher more than 700 points. The fresh optimism is fueled on the back of two factors: firstly, Donald Trump’s announcement of partial opening of the economy and finally, Gilead (NASDAQ:) Science has found more effective results in treating the coronavirus patients. Traders have completely turned a blind eye to Chinese GDP data.
Historic numbers were recorded over in China—the second biggest economy in the world. Chinese GDP data fell off a cliff and it confirmed that the Chinese economy is off the rail. Its GDP plunged 6.8%, the worst reading since 1992. Moreover, retail sales dropped 15.8% providing a clear indication that consumers have closed their wallets.
There is no doubt that there is a complete disconnect between the fundamental data and the global equity markets. For instance, if we look at the US equity markets, you can see the V-shape recovery, most of the major indices are up more than 20% from…
