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Highs of world stock markets amid the crisis

It is very symptomatic that after the publication of the biggest ever recorded decline in US and Eurozone GDP, the global stock markets (MSCI world equity index) showed the highest values over the past five months and came close to the historical maximum. Buyers are not stopped by the economic crisis, or the disastrous earnings season in the United States, or the growing tensions between the United States and China, not the pandemic, and nothing at all.

Absurdity is a key component of the current behavior of financial markets and everything related to them. Let’s take Microsoft and Tik Tok situation, as an example. Its emergence largely due to an ultimatum from the US government, but the US government also wants to get a share of the deal. At the very least, President Trump said that the US government should receive a share from this sale without specifying, however, how he imagines it.

Republicans and Democrats have not yet reached a compromise. Against this background, Trump said that the Government can take a number of measures to save the economy, including a moratorium on evictions, the introduction of tax holidays, and additional unemployment payments.

Trump can be understood, the situation in the US labor market continues to be extremely depressing even with the availability of weekly payments of $ 600. And since Monday, they are officially gone, which threatens a sharp drop in consumption. Considering that almost half of the temporarily unemployed believe that their jobs will not return (according to a survey by the Associated Press-NORC Center for Public Relations Research), additional payments from the authorities are practically their only chance for a more or less full-fledged existence.

In this light, it will be extremely interesting to look at today's statistics on employment in the US from ADP and, of course, we look forward to Friday with data on NFP and unemployment.