Pre-Market Review
IMF Warns of Recession

Posted by James Hughes -
Scope Markets

Wall Street racked up more gains yesterday. Investors chose the improving health picture over the worsening economic picture to focus on. At the same time, the IMF is already signalling a global recession that could hit sooner than later.

Yet again, we saw stock markets rally slightly more positive than expected data around the health aspects of Coronavirus. There were growing signs that hotspots such as New York were starting to see the number of hospital admissions full as well as the number of deaths. This could be a good sign that the US is winning the battle against COVID-19.

However, what the movement in markets fails to show is just how much the economic impact after the virus has gone will affect global markets. The fight against Coronavirus is not only a health-related one, but it is a financial-related one.

Global recession ahead

Yesterday the IMF warned that the global economy could be in store for one of its worst recessions. They stated that there had never been a recession approaching with such ferocity. The gloomy warning followed predictions on GDP. It showed the US contracting by 6% and the UK by 6.5% in 2020.

The fact that the pandemic spread so quickly meant countries had virtually no time to prepare their economies for the lockdown. However, it’s not only the preparation time. Nobody had any experience in just what sort of pain this would bring.

Earnings took centre stage yesterday, and they will do so for the rest of this week and into next week. Earnings from JPMorgan and Wells Fargo underscored the expected economic damage that lies ahead. Both banks reported a steep contraction in earnings on the loan loss provisions. They warned they might need to stock away more money to offset anticipated loan defaults and customers.

The rally on Wall Street saw the FAANG stocks gaining more than 3%.

Today sees economic data for March out which will be the highlight of the day. This is the first time that data switches from February to March and gives us a data set that was affected by the pandemic. US Retail sales is going to be a reading that could well paint a mixed picture, as hoarding and panic buying could well boost the data in some areas, but lockdown measures will see some severely depressed.

Share this article:

Disclaimer: The article above does not represent investment advice or an investment proposal and should not be acknowledged as so. The information beforehand does not constitute an encouragement to trade, and it does not warrant or foretell the future performance of the markets. The investor remains singly responsible for the risk of their conclusions. The analysis and remark displayed do not involve any consideration of your particular investment goals, economic situations, or requirements.

Funding Methods

Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets
Scope Markets


Scope Markets
Scope Markets
Scope Markets
Scope Markets

Scope Markets offers institutional and retail trading services to businesses and traders worldwide. Our top management team has more than 20 years of experience in the industry, and we are proud of the solid partnerships we build over the years. Whether it's a business or individual, Scope Markets has a wide range of trading solutions that are compliant, flexible, cost-efficient, innovative, and place the client first.

Contact Us

Registered address:
5 Cork Street, Belize City, Belize C.A.


+44 2030 516959

Risk Disclaimer

Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Trading in financial instruments may result in losses as well as profits and your losses can be greater than your initial invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.

Legal Information

Scope Markets Ltd is a company registered under Belize with Registration Number 145,138. Scope Markets Ltd is authorized and regulated by the International Financial Services Commission of Belize (“IFSC”) under the license numbers 000274/222 and 000274/221. The registered address of Scope Markets Ltd is, 5 Cork Street, 1708 Belize City, Belize.

Restricted Regions

Scope Markets does not offer its services to the residents of certain jurisdictions such as EU Member States, Iceland, Norway, Liechtenstein, Afghanistan, Cote d'Ivoire, Cuba, Iran, Libya, Myanmar, North Korea, Sudan, Puerto Rico, USA, Syria, and Ecuador. Please check Restricted Countries.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

© Copyright 2020 Scope Markets. All Rights Reserved.