Continued Coronavirus Fallout, Some Perspective on U.S. GDP, and a Look at the Eurozone

While the eastern U.S. and even Germany look to have (finally) turned a corner on manufacturing, China’s manufacturing PMI remains firmly on the line between growth and contraction. If a strong wind wouldn’t be enough to blow them one way or the other, the coronavirus—yesterday dubbed a “global health emergency” by the WHO—just might be. Commodities’ health is certainly suffering under the weight of the virus, and even “The Doctor” isn’t immune; copper just posted its longest stretch of declines on record. Shipping prices, airline revenues, and still-fledgling EM export growth are among the other primary concerns. Let’s hope this market anxiety, and subsequent market reaction, is less contagious than the virus itself. One fear we can address today: while year-over-year U.S. GDP growth is down, we’re far from revisiting the the devastating losses of the ’07-’09 era. Finally, despite ongoing political and economic struggles, the Eurozone unemployment rate has maintained a downward trend for roughly six years now and just hit its lowest level since the financial crisis—could a stronger workforce spark some growth for the region?