After a gain of 13.3% in two days, the Paris Bourse may experience a sudden stop this Thursday. The American Senate finally voted, overnight, its famous support plan. However, attention is now focused on the real impact of the coronavirus pandemic on the economy, and in particular on the foreseeable surge in jobless claims. The Bank of England’s monetary decision will also be monitored. At around 8:30 am, the Cac 40 index future April contract fell by around 2%.
Senate Passes Hand in Chamber
After four days of fierce debate, the United States Senate has finally passed a bill on a package of approximately $ 2,000 billion intended to help taxpayers and businesses to cope with the economic fallout from the health crisis . The 880-page project includes direct payments to Americans, increased unemployment insurance, business loans and grants, and aid for hospitals, as well as states and municipalities. The text must now be adopted by the House of Representatives which hopes to vote on Friday.
Towards an explosion of unemployment
In the meantime, thousands of Americans have been placed on short or full unemployment due to the closure of many businesses and the downturn in activity. The Bureau of Labor Statistics will publish the weekly jobless claims figures at 1:30 p.m. Economists expect around 1.6 million new benefit claims, up from 281,000 last week. The highest estimates forecast up to 4 million requests. By comparison, Canadian Prime Minister Justin Trudeau said Wednesday before Parliament in Ottawa that jobless claims had reached 1 million in Canada last week.
The ECB strengthens its PEP
Governments are stepping up measures, Japan is working on a $ 500 billion support plan while the governor of Tokyo has called on residents to stay home.
In addition to the Bank of England’s monetary decision, which may herald new initiatives, the Fed chairman is scheduled to deliver a televised address on Thursday. To be continued.
Closer to home, the European Central Bank said yesterday that the country’s 33 percent debt-buying limit has been lifted as part of its “Pandemic Emergeny Program” (PEP). So there is no limit. In addition, the ECB would be in favor of launching an OMT program if necessary, which would allow it to intervene on the secondary market for sovereign bonds to buy bonds issued by governments.
On the values side, Great, Sweat and Edenred have joined the ranks of companies that have suspended their financial targets for 2020. Casino meanwhile suspended the objectives of its 2019-2021 plan.
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