• Most global markets in bear territory
  • Purchasing managers indexes in focus this week
  • $2 trillion stimulus bill implemented in the U.S.

Global markets will face another week of uncertainty and volatility as coronavirus cases worldwide topping 575,000, with more than 127,000 in the U.S. Financial markets are nearly all in bear territory, except for Japan.

Courtesy YCharts
Courtesy YCharts.

We'll get a better read on the evaporation of business demand this week with the release of purchasing managers' indexes from around the world, as well as weekly unemployment claims here in the U.S. A record 3.28 million Americans filed for unemployment last week, and those numbers are expected to climb.

The $2 trillion U.S. stimulus bill, officially called the CARES Act, was officially passed by Congress and signed by President Trump this afternoon. It's the largest spending package in U.S. history. (Full details can be found here.) While that should provide some measures of relief to small businesses, the unemployed, and key industries, many are already saying it's not nearly enough to stem the crisis. Expect more fiscal and monetary policy measures in the coming weeks.

Now here's a look at how different asset classes have been doing:

Here's a list of economic events for the week ahead:

 Monday, March 30:

 Tuesday, March 31:

  • U.K. Gross Domestic Product (GDP) (Q4)
  • French Preliminary CPI (March)
  • French Consumer Spending (Feb.)
  • German Unemployment Rate (March)
  • Spanish GDP (Q4)
  • U.K. Business Investment (Q4)
  • Italian Preliminary CPI (March)
  • Eurozone Preliminary CPI (March)
  • Brazilian Unemployment (March)
  • Canadian GDP (Jan.)
  • U.S. Chicago PMI (March)
  • U.S. S&P/CS Housing Price Index (Jan.)
  • U.S. CB Consumer Confidence (March.)

Wednesday, April 1:

  • German Retail Sales (Feb.)
  • Italian Manufacturing PMI (March)
  • French Manufacturing PMI (March)
  • German Manufacturing PMI (March)
  • Eurozone Manufacturing PMI (March)
  • U.K. Manufacturing PMI (March)
  • Eurozone Unemployment Rate (Feb.)
  • Brazilian Industrial Production (Feb.)
  • U.S. ISM Manufacturing PMI (March)

Thursday, April 2

  • Market Holiday in Indian for Ram Navami
  • Brazilian IPC-Fipe Inflation Index (March)
  • U.K. Construction PMI (March)
  • U.S. Trade Balance (Feb.)
  • Canadian Trade Balance (Feb.)
  • U.S. Factory Orders (Feb.)
  • Chinese Caixin Services PMI (March)
  • Japanese Services PMI (March)
  • U.S. Initial Jobless Claims

 Friday, April 3:

  • Reserve Bank of Indian Interest Rate Decision
  • Eurozone Services PMI (March)
  • Spanish Services PMI (March)
  • Italian Services PMI (March)
  • French Services PMI (March)
  • German Services PMI (March)
  • U.K. Services PMI (March)
  • Eurozone Retail Sales (Feb.)
  • U.S. Nonfarm Payrolls (March)
  • U.S. Labor Force Participation Rate (March)
  • U.S. Unemployment Rate (March)
  • U.S. Market Services PMI (March)

Purchasing Managers' Indexes

Countries all over the world are reporting manufacturing purchasing managers' indexes this week. China is reporting on Monday, while the Eurozone and the U.S. report on Wednesday. As we often mention, purchasing managers' indexes can be an important leading indicator to tell how a firms are doing around the world, especially for manufacturing. This is doubly important for manufacturing-dependent economies like China or Germany. With the COVID-19 epidemic continuing to disrupt supply lines across the globe, keep an eye on how factory managers are feeling.

U.S. Unemployment Claims

You may have heard last week that a record 3.28 million Americans filed to claim unemployment insurance. For context, that is nearly five times the previous record of 695,000, set in 1982. While we normally don't highlight weekly events here, people should watch to see how high the number of claims stays, both this week and in the next few weeks. This will help give an idea if this was an anomalous one-off or if this will be a continuing trend. In addition, the U.S. monthly employment rate is announced at the end of March, and it will give some idea as to how this has affected the overall employment market.