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Japanese exports predictably weak

Emily Nicol
Chris Scicluna
  • Japanese exports predictably weakened at the end of Q1, with a widespread steeper pace of decline in shipments to its key export partners as the Covid-19 outbreak took its toll on global demand.

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Unprecedented plunge in China’s Q1 GDP

Emily Nicol
Chris Scicluna
  • Asian financial markets ended the week on an upbeat note despite an unprecedented plunge in China’s Q1 GDP, down an extraordinary 6.8%Y/Y, as the coronavirus-associated lockdown inevitably took its toll on economic activity.

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Sentiment settles

Emily Nicol
Chris Scicluna
  • After yesterday’s renewed risk aversion, market sentiment appears to have settled once again on further evidence that the flow of new coronavirus cases has slowed and further countries move gradually to ease restrictions on activity. However, with a few exceptions, including today’s Aussie jobs numbers, the economic data remain extremely weak.

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Eurogroup flunks it

Emily Nicol
Chris Scicluna
  • After the ECB took further action to boost the flow of credit to the euro area economy, the Eurogroup flunked its latest test, failing to agree new pandemic crisis support mechanisms. The Bank of France, meanwhile, estimated that French GDP suffered its worst ever quarterly decline in Q1, with worse to come in Q2.  

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Over to Abe

Emily Nicol
Chris Scicluna
  • Ahead of the key Eurogroup videoconference to agree common pandemic crisis support, PM Abe will declare emergency in seven prefectures and unveil his fiscal support package. The headline figure of more than ¥100trn will seek to impress. But the size of direct government support to the economy might be better judged by the increase in new JGB issuance, which will be less than one fifth that amount.

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