Monthly Comment April 2020

In April, financial markets recovered. Hopes of a reduced contamination rate of Covid-19, a reopening of societies and massive stimulus packages impacted the markets positively. Most of the company reports from the first quarter were, under the current circumstances, satisfactory. However, many companies were mostly affected at the end of the quarter, which is why the reports are of limited importance. Uncertainty about the continued spread of the virus poses a risk of large movements in the financial markets in the coming months. Economic statistics and second quarter reports will most certainly be very weak, it will therefore be crucial for companies to see a positive trend during the quarter and provide positive guidance. The price of oil fell sharply and was even quoted at a negative price but recovered during the month.