At the end of last year, the prevailing scenario on Wall Street was that the first six months of 2020 would be the time when the American economy would shake off the phase of less glow that it passed in the previous two semesters, there was even talk of a return to the growth of corporate profits, not yet in double digits, but already far from the contraction zone. All of this at this stage is history and no longer counts for anything, here the market is at a crossroads, it is not certain that the correction was sufficient, nor that the measures already announced by the US government and central bank are the panacea for this huge headache, which for now is liquidity, but which in a very short time can aggravate a solvency problem in a very significant part of the economy.
And if the biggest economy in the world still has a chance to get out of the hole in a reasonable period of time, according to a study by McKinsey, the European economy will have much more difficulties to overcome the most difficult moment, even for the consultant the economic zone. which will contract more during this year, between 4.4% (in the most optimistic scenario) and more than 9% (in the most pessimistic scenario), the latter case the pandemic persists for much longer which would trigger the recovery for 2023.
Photo by Mauro Sbicego Z.
It is because of these uncertainties that Wall Street’s performance in April is for the moment unknown, will it recover or continue to correct? However, volatility is expected to remain high, but not as much as it has in recent weeks. In raw materials it will be very interesting to see what will happen with the price of crude, which recorded the biggest drop in a quarter now being close to $20 per barrel.
