Governments worldwide have began to ease the lockdown due to the outbreak of the corona virus pandemic. Due to this stock market had rallied on Monday. However, prices of oil in the international market still plunged further down due to glut in supply and cut in production.
With the rise in US, Asia and European markets after devastating figures due to the covid-19 pandemic it is obvious that we have gone past the peak of the Corona virus.
According to a senior marketing analyst with the IG trading group, Joshua Mahony, stocks had kicked off in optimistic style at the beginning of the week.
As we begin to see the end to the lockdown it is obvious that economic activities are going to kick back to life.
In the past week Germany had reported this lowest rate of infection and death since the month of March.
Wholesale markets will be allowed to open for business in Italy starting from the 4th of May. Spain had on Sunday eased the lockdown to allow children play outside. In Switzerland hairdressers, florists, massage parlors and gardens are now allowed to open for business.
The governor of New York, Andrew Cuomo, has also said that there would be a monitored reopening of the street from the 15th of May. This would be based on whether there is a decrease in hospitalized cases of the corona virus.
The British prime minister, Boris Johnson, has also said that Britain was beginning to turn the tide but insisted it may not be the best time to totally ease the lockdown.
Notwithstanding the fact that there had been a rally in stock markets, some analysts and commentators are still doubtful that it would continue that way.
According to the likes of Patrick O’Hare, the stock market may have offered some hope, at least when compared to what it had been in the peak of the pandemic, the situation on ground is too far from the fundamental reality. So, it may not yet be time to rejoice.
The Bank of Japan simply wrote it off as ‘better than doing nothing’ as they began to implement some monetary easing to launch the economy back to normalcy. They insisted that the year 2021 may receive the worst hit for it.
Although WTI had recorded a 25% loss in oil revenues even as it had been badly hit in the past weeks, it’s still worth celebrating that our world is gradually returning to the good old days.