U.S., European stocks buoyed by plans to lift lockdowns

NEW YORK, USA – European and United States stock markets mostly climbed on Thursday, April 16, as investors shrugged off weak economic data and focused on plans to ease some coronavirus lockdown restrictions.

The US reported another big spike in unemployment claims, taking the number of jobs lost since mid-March to 22 million, while British retail sales data slumped amid shelter-in-place orders in the country.

The reports, the latest to paint a dark picture of the economy, were not unexpected, analysts said. 

“The market is looking ahead and understanding this is what we have to deal with, and looking forward to at least an attempt to open the economy,” said Quincy Krosby, chief market strategist for Prudential Financial.

AvaTrade analyst Naeem Aslam agreed, saying “investors are shrugging off the pessimism and [are] willing to focus on more positive things.”

US President Donald Trump was expected later in the day to outline his steps to bring the economy back online, saying on Twitter, “We are having very productive calls with the leaders of every sector of the economy who are all-in on getting America back to work, and soon.”

But business leaders have said more widespread testing for coronavirus is essential before the economy can move significantly towards normalcy.

A touch of stability

Frankfurt stocks added 0.2% after German Chancellor Angela Merkel late Wednesday, April 15, unveiled the first steps towards undoing coronavirus restrictions that have plunged the eurozone’s biggest economy into recession.

“Markets in Europe appear to be stabilizing a touch on some limited relaxation of lockdown restrictions across the region,” said CMC Markets analyst Michael Hewson.

“Germany has become the latest European country to say it would be loosening some measures on its lockdown over the coming weeks, which is clearly helping European sentiment for now.

“Reports that the UK has seen a peak in its infection rates is also helping,” he added.

London stocks gained 0.6% even as a British Retail Consortium (BRC) survey showed total March retail sales plunging 4.3% from a year earlier as the deadly virus outbreak kept British shoppers away from traditional stores.

“The crisis continues; the retail industry is at the epicenter and the tremors will be felt for a long while yet,” said BRC chief Helen Dickinson.

Reopening in Italy

Milan stocks rose 0.3% after the Lombardy region, the nation’s industrial heartland, signaled it wants to get back to work from May 4.

On the downside, Asian markets fell following overnight woes on Wall Street as more negative US economic data fueled worries about the full impact of the coronavirus pandemic.

There had already been a spate of grim economic forecasts this week, with the International Monetary Fund warning of the worst global downturn in a century, while poor US economic figures on Wednesday also spooked investors. – Rappler.com