The worst is yet to come for the US economy - analyst
The revival in stock markets that took place on Wednesday does not indicate that the global economy is emerging from the crisis.
This opinion is expressed by the director of the analytical department of Loko-Invest, Kirill Tremasov, who is quoted by Nezavisimaya Gazeta.
So, yesterday, after the fall of previous days in the US, the Dow Jones index added 11%, Asian markets - up to 8%, and European markets opened in positive territory by 4 - 4,5%, the RTS added up to 6,4%. But later, oil prices fell again, and new frightening figures on coronavirus cases dispelled optimism.
Tremasov is convinced: the released preliminary PMI indices for the USA, Japan, Australia and the UK paint the same picture - a recession has begun.
“The situation looks most dramatic so far in the eurozone; in the US and UK, the peak of the decline will most likely occur next month,” the expert writes. – Against the backdrop of such a picture in the economy, one should not count on a sustainable turnaround in the stock market. The current surge in optimism is likely to be short-term.”
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