And yet, this week across the pond in the USA, as if in some strong show of defiance, the US S&P 500 Index has increased with the Dow Jones and the Nasdaq 100 also showing up movements. Elsewhere, the Nikkei in Japan showed a marginal increase.
Despite this minor optimism in the markets, and to keep matters in perspective, any joy there is vastly over-shadowed by the unemployment figures business closures that have risen beyond any recent compare and auger a depression to match, if not exceed, that of a century ago.
So we have an economy on a severe downturn and a stock market that is the giving off positive vibes in all probability stoked by the Federal Reserve’s corporate lending program announcement of $2.3 trillion.
The current optimism in the markets reflects a belief that there is light at the end of the tunnel and that, despite the general income and employment reductions there will not be business closures on a grand scale and employment and spending will pick up sooner rather later.
A similar pattern can be seen in Europe - the FTSE has risen from the five year low of 23rd March at 4293 up to yesterday’s closing price of 5,842. If we look across at the markets in France and Germany we can see the CAC and DAX repeating this configuration.
So there is confidence in the markets at least, and in the actions of the policy makers, whilst on the streets there remains limited confidence that an end to the spread of, and subsequent deaths from, corona-virus is in sight.