Week in Review 5/1/2020

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SP500 ends week on selloff after US GDP officially confirmed that have contracted Q1 2020.

Initial jobless claims at 3.8 million, and ISM PMI confirms drastic change in manufacturing levels.

Housing starts and new building permits paint grim picture for the US housing market as well.

FED continues expanding CB swap line programs as dollar demand continues to rise.

EU Central Bank balance sheets also see expansion in March and April.

European and Asian equities had a week of gains, but did not escape the Friday sell off.

Treasury yields strengthen against Gilts on the week, though still tighter compared to the start of the month.

Outlook continues to look grim for oil though agricultural products see a rebound.

We see a tightening of credit spreads in lower rated bonds, including EM.

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