New coronavirus countermeasures and economic indicators in focus! OK-chan-man’s one-minute guide to this week’s important events (week of March 30)
This week's economic indicators! Two important events that Okachan-man is watching
① Countermeasures against the novel coronavirus
② Economic indicators
Ancient FX Blog
(Below is the transcription of the video)
Hello everyone, this is Okachan-man. As for this week's points of focus, I’ve listed two: countermeasures against the coronavirus and economic indicators.
Countermeasures against the coronavirus are being discussed almost every week. Indeed, over the weekend Tokyo called for self-restraint and staying indoors, but if infections continue to spread, lockdowns and city closures may be discussed. If major cities like New York, London, and Tokyo are closed, that could further depress the economy. So I think the question is whether measures to prevent the spread of infections and city closures will appear. Also, because such measures could cause economic stagnation, how much economic relief will be provided? In the United States, a $2 trillion stimulus package has passed, but I wonder what kind of countermeasures will be implemented in other countries and whether these can help support stock prices.
As for the other economic indicator, this week is the end of the month / beginning of the month, so there are many important indicators. In particular, indicators affected by the coronavirus are of interest. Among them, attention is on China’s manufacturing PMI and non-manufacturing PMI (Caixin), which covers the private sector including manufacturing and services. China posted extremely high numbers last month, so the question is whether there is a V-shaped recovery or if numbers will come in better than forecast. In the United States, manufacturing PMI and non-manufacturing PMI (services) are also important, with ISM closely watched. The employment report is also key for the weekend. Last week, unemployment claims were extremely high, so this week’s U.S. employment data are expected to be very weak as well, which is noteworthy.
So, this week too, the coronavirus is likely to move the markets. I also expect high volatility, so I want to stay mindful of risk management.
Well then, let's do our best this week as well. This was Okachan-man.
