 Economic data releases have probably never been that meaningless in history. Traders were not too concerned that the Q1, March or even April data were worse than terrible. Instead, hope of lockdown exit, at least partially, have lifted risk markets for the initial part of the week. Risks of a second wave of coronavirus pandemic remain, in particular with increasing spread in Russia, Brazil and Mexico. Yet, for now, Europe is generally improving steadily, while infections and daily deaths in the US has at least stabilized. Meanwhile, investors are already looking through to post pandemic international relations. Talks of US retaliations to China's cover-up and mishandling of the coronavirus outbreak at the early stage intensified last week. Works are being done in the Senate on stripping China of its "sovereign immunity" status under US law — which would allow the US government or private entities to sue the country for compensations. There were also talks that the US administration is considering cancelling interest payments to debts held by China, or even debt cancellations, as punishment. But such idea was ruled out by White House economic adviser Larry Kudlow, which said it's "absolutely and unequivocally untrue," adding that "the full faith and credit of US debt obligations is sacrosanct." |
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