US MORNING: IMF Warns About Growth. Stocks Continue Higher


Oil tanks on IMF's grim economic outlook

USD continues to be on the backfoot

Gold & silver trade higher



Stocks Defy Gravity
 
The IMF published its latest economic forecasts into the US market open. Market participants largely ignored a grim outlook for for a 3% contraction in global GDP for 2020. US stocks are trading over 2% higher, also ignoring increased loss provisions in JPMorgan’s earnings report for Q1.
 
In contrast to previous weeks, stocks have decoupled from oil, which appears to be more heavily affected by the IMF’s report. Both WTI and BRENT traded materially lower, with the US benchmark bearing the more substantial part of the decline.
 
Precious Metals Outperform
 
Gold and silver have been outperforming the rest in the commodities space once more, rising 1% and 2%, respectively. European governments have been discussing the prospects of reopening the economy amid an increasingly optimistic picture about a peak in the new cases of coronavirus across the continent.
 
USD Still on Shaky Ground
 
The US dollar continued to be on the backfoot, as political tensions between Donald Trump and state governors about reopening the economy appear to be escalating. In a press conference last night, President Trump asserted that he has to make the final call on the timeline for a return to normalcy. Earlier this morning, Governor Cuomo disputed the claim.
 
The British pound and the euro are the primary beneficiaries of the US dollar’s weakness this morning, rallying over 0.7% and 0.5%, respectively.



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