Global impact of covid-19
Initial unemployment claims totaled 2.4 million last week. Over the last nine weeks, 38.6 million Americans have lost their jobs.
According to FactSet Economic Estimates, the U.S. is expected to experience CPI inflation of 1.0% in 2020, while the Eurozone sees 0.5% inflation and China sees price growth of 3.0%.
united states Unemployment Claims
Lower CPI inflation due to slower economic growth
EU Leaders Debate Corona Bonds
The joint issuance of Eurobonds based on a combined EU credit rating is needed more than ever for the struggling countries in southern Europe facing spiraling debt and contracting economies.
Companies Withdraw 2020 EPS Guidance
Through May 21, 172 companies in the S&P 500 stated during Q1 conference calls that they were withdrawing or had already withdrawn previous EPS guidance for FY 2020.
Impact on global equity markets
According to FactSet’s Market Indices, U.S. equities are down 8.9% year-to-date, while European equities are down 20.9% and Chinese companies have fallen 2.3%.
Consumers Shift Spending Away from Clothing, Furniture, and Travel
Economic data shows sharp contractions at clothing and furniture retailers, while a record low number of Americans plan to vacation in the next six months.
Futures continue to trade below $2/mmbtu
Despite lower production in response to reduced industrial and electrical demand, inventories remain elevated,
suppressing futures prices.
The latest EIA weekly
data shows storage
up 42.8% y/y.
Natural Gas Prices Remain Subdued
U.s. unemployed claims
weekly update | 5.26.2020
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Q2 S&P 500 EPS estimates
The Q2 bottom-up estimate for the S&P has decreased by 35.3% since March 31