Anzo Capital
Anzo Capital Representative
- Messages
- 15
Weekly Market Review by Anzo Capital
For the week of 25 May 2020
On Germany and U.S. Economy
Economic conditions in Germany remain challenging with initial estimates suggesting a contraction in consumer prices at 0.1% as the country’s major trading partners begin to come out of lockdown. Confirmation of GDP estimates on Monday put first quarter growth at -2.2% indicating that Europe’s largest economy has entered into a recession. Despite the news, German companies are more optimistic after a devastating couple of months. The light at the end of the tunnel is the gradual reopening of economies which led to improved prospects for future conditions and inspired a rise in the index to 79.5 point for May.
The second estimate of U.S economic growth for the first quarter indicated the slowdown is worse than initial measurements. GDP for the three months ending March, came in at a contraction of 5%. Stay at home orders issued in March attributed to the poor first quarter performance. President Trump announced sanctions against China on Friday in response to the “smothering” of Hong Kong. He further stated that the U.S. has pulled out of the WHO, as he believes that China has a controlling influence on the organisation. No mention was made of the phase one trade deal. US Durable Goods Orders plummeted 17.2% in April indicating that second quarter growth may be worse than the first quarter.
For the week of 25 May 2020
On Germany and U.S. Economy
Economic conditions in Germany remain challenging with initial estimates suggesting a contraction in consumer prices at 0.1% as the country’s major trading partners begin to come out of lockdown. Confirmation of GDP estimates on Monday put first quarter growth at -2.2% indicating that Europe’s largest economy has entered into a recession. Despite the news, German companies are more optimistic after a devastating couple of months. The light at the end of the tunnel is the gradual reopening of economies which led to improved prospects for future conditions and inspired a rise in the index to 79.5 point for May.
The second estimate of U.S economic growth for the first quarter indicated the slowdown is worse than initial measurements. GDP for the three months ending March, came in at a contraction of 5%. Stay at home orders issued in March attributed to the poor first quarter performance. President Trump announced sanctions against China on Friday in response to the “smothering” of Hong Kong. He further stated that the U.S. has pulled out of the WHO, as he believes that China has a controlling influence on the organisation. No mention was made of the phase one trade deal. US Durable Goods Orders plummeted 17.2% in April indicating that second quarter growth may be worse than the first quarter.