The markets rebounded during the period from June 15 to 19, 2020, reassured by the action of the Federal Reserve (FED) after the return of concerns linked to an increase in new coronavirus contaminations observed a week earlier, reports a weekly market note published by the regional stock exchange (BRVM).

In the developed countries, the financial markets thus remain suspended on the slightest announcement from the FED, whose statements over the past week have helped restore calm to the main world stock markets. Indeed, the American central bank has launched its support program for national companies, consisting mainly of credits, for a total amount of 600 billion dollars, granted to companies with less than 15,000 employees.

In addition, the rebound in retail sales during the month of May also boosted investor confidence with an increase of 17.7%, against 8.4% expected by the consensus. It should be noted that this positive trend was driven by the catering sector, whose sales increased by 29% over the period, against a heavy drop of 40% in April, illustrating the restart of commercial activities following the release of containment measures in the country.

The movement to relax social distancing measures is also well underway in Europe, where the economies have suffered particularly from the period of confinement, as evidenced by the expectations of the National Institute of Statistics and Economic Studies (INSEE) regarding to the development of growth in France. Thus INSEE expects a fall of 17% of the French Gross Domestic Product (GDP) during the 2nd quarter and of 8% over the whole of 2020.

On the side of the world stock exchanges, the performances remain greatly influenced by the announcements of the FED. Thus, despite the surge in new COVID-19 contaminations observed in the United States and China, stock market indices generally recorded good performances over the week.