Last week Trump was acquitted and found “not guilty” for charges of abuse of power and obstruction of Congress. This was always the likely outcome as the Senate is made up predominantly of Republicans. Trump will now become the first US President to run for re-election after having an impeachment trial.
The coronavirus surpassed the death tally of SARS over the weekend with more than 40’000 reported cases and 910 deaths as of this morning. Last week US markets mostly ignored the threat that the virus outbreak poses by notching up new all-time highs on all 3 major indices.
US economic data released during last week was positive, but the German economy remains under pressure with very disappointing industrial production figures for December.
So far the potential impact of the coronavirus outbreak doesn’t seem to have filtered through the global economy. Chinese markets were sold off initially when markets resumed after the Chinese New Year celebrations, but recovered most of the losses by the end of the week.
As the size of this pandemic grows, the expected consequences become less and less certain and we’ll have to wait and see how the markets assess the long-term impact.
What to look out for the rest of the week
On Tuesday, UK are releasing their Q4 GDP numbers.
On Wednesday, December industrial production figures for the Eurozone will be released.
On Friday, the Q4 GDP figures for Germany and the Eurozone will be released. The US is also releasing their retail sales and industrial production figures for January.