Investors are absolutely ignoring any bad news (whether its fundamental or economic news) and are focusing on the central banks printing money. Therefore, large caps and technology stocks are soaring, while small caps (which represent the economy) are lagging behind.
Meanwhile, the latest data from the European Auto Industry Association (ACEA) showed that new car registrations plunged 51.8% year-on-year to 853,077 vehicles for the month, the biggest drop and the lowest number of sales on record. The automotive sector rose sharply after this news.
Additionally, data from China showed the world’s second-largest economy shrank for the first time since at least 1992 because of the coronavirus woes. GDP contracted 6.8% in the quarter year-on-year, more than expected, and 9.8% from the previous quarter. Retail sales also fell more than expected in March, but industrial output dipped only slightly, suggesting its manufacturing sector at least is recovering more quickly.
In the FX market, the greenback surged today, but gains were quickly erased when US traders entered the market and the US dollar reversed its course, pushing the EURUSD pair back toward the 1.09 threshold.