Clear evidence of economic damage rattled investor nerves overnight. European unemployment rose, and German GDP fell 11.7%, sparking a torrid trading session for continental markets. US production shrank at its highest rate ever in the second quarter, and weekly unemployment claims rose to 17 million.

US GDP contracted by 32.9%. Crude oil and base metals tumbled, and EUR/USD lifted. US ten year bonds rallied to 0.546%, although gold traded lower.

European stocks fell 2% to 3% after a weaker earnings report from Volkswagen and an operating loss at Lloyds. US stocks fell early, but recovered into the close. 82 top 500 US stocks reported overnight, meaning more than half have now faced shareholders. Most continued the theme of jumping over a low earnings bar. Both Haynes and Yum! painted a stronger picture of consumer activity than previously reported.

After market reports saw Amazon, Apple, Alphabet and Facebook all beat estimates, lifting NDAQ futures. Apple announced a 4 for 1 stock split, viewed as an encouragement to retail investors. All rose in initial responses, but Alphabet fell into negative territory after analysts honed in on its first ever fall in quarterly revenue.

Asia Pacific markets are facing a cautious day on the mixed overnight leads. Data tonight could hurt again. European wide GDP data is expected to show a 14.5% year on year fall.


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