US Economy and Credit Markets Ended March 27, 2020

Bob Carey
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US Economy and Credit Markets Ended March 27, 2020

Posted Under: Weekly Market Commentary

Treasury prices rose among most maturity levels over the course of the week as the coronavirus pandemic increased and social distancing took its toll on the economy. Confirmed coronavirus cases in the United States rose to over 100,000 as testing ramped up significantly and over half a million around the world. Initial jobless claims skyrocketed to 3.3 million over the last week as national social distancing and local lockdowns took its toll on the economy. However, the U.S. Congress passed a $2 trillion fiscal stimulus package to get cash into the hands of Americans and help businesses during the economic slowdown. The Federal Reserve also pledged to buy an unlimited amount of Treasurys and mortgage-backed securities, purchasing $375 billion of U.S. government paper and $250 billion of mortgage bonds last week. The central bank's balance sheet hit a record $5.3 trillion on Thursday. Gold also rose 9% over the course of the week. Major economic reports (related consensus forecasts, prior data) for the upcoming week include Tuesday: March Chicago PMI (40.0, 49.0), March Conf. Board Consumer Confidence (112.0, 130.7); Wednesday: March 27 MBA Mortgage Applications (N/A, -29.4%), March ADP Employment Change (150k, 183k), March Final Markit US Manufacturing PMI (48.0, 49.2), February Construction Spending MoM (45.0, 50.1); Thursday: February Trade Balance (-$39.7b, -$45.3b), March 28 Initial Jobless Claims (2750k, 3283k), February Factory Orders (0.2%, -0.5%), February Final Durable Goods Orders (N/A, 1.2%); Friday: March Change in Nonfarm Payrolls (-100k, 273k), March Unemployment Rate (3.8%, 3.5%).

Posted on Monday, March 30, 2020 @ 8:11 AM • Post Link	Share:
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These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.

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