Pump it up: World market themes for the week ahead

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Pump it up: World market themes for the week ahead GlobeInvestor

A photo illustration of Robinhood's checking and savings accounts provided by Robinhood Dec. 13, 2018.“Rise and rise again until lambs become lions,” runs an oft-quoted line from the 2010 film. The motto is being taken seriously by all those merry men and maidens chasing shares in little-known or even bankrupt firms, using a mobile trading app called Robinhood.

A raft of U.S. data due in coming days might allay some concerns if they reveal an economy on the mend. April retail sales plunged a record 16.4% but hopefully that was the nadir. Industrial production and housing starts are the other anticipated data points. What about letting interest rates go negative? Unlikely -- the BOE says it needs more time to weigh that.Unfortunately, policy makers don’t know if coronavirus cases will surge again or whether the government can reach a trading arrangement with the EU by Dec. 31. If Britain is cast adrift without a trade deal, all bets are off on the economic outlook - and indeed on how much QE the BOE will eventually have to do.

 

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