- Equities had their best day since the financial crisis with the S&P 500 and Dow Jones up 9.4% and 11.4%, respectively, while the latter experienced its largest single day gains since the Great Depression in 1933.
- Last night the Senate and the White House agreed the USD 2 trillion stimulus plan. The legislation still requires formal approval by Congress but is expected to pass and then be signed by the President.
- The legislation will provide direct financial pay-outs to many Americans, drastically expand unemployment insurance, offer significant lending to both small and large businesses and give health care providers additional resources as the virus spreads.
- Movements in long-term interest rates were relatively small, while most currencies appreciated versus the USD.
- Preliminary PMIs from the US were released yesterday afternoon. Manufacturing figures held up reasonably well at 49.2 (versus an expected 43.5) while service sector data mirrored the previous day's European falls and dropped sharply to 39.1 (versus an expected 42). This indicates a deep recession in the large service sector part of the US economy.
SKAGEN Funds Summary
- Liquidity continues to be strong across all funds.
- The portfolio managers remain positive.