(16 April 2020)DAILY MARKET BRIEF 1:Weak bank profits, ugly economic data weigh on global risk appetite

<p>Global risk appetite deteriorates as ugly economic data added to weak bank earnings confirm that a sizeable recession is knocking on the door. US banks are increasing their bad-loan provisions to record levels on fear that credit-card holders and businesses may not pay back their interests and loans. Still, trading revenues for Goldman Sachs, Bank of America and Citi beat estimates as hectic first quarter trading and high market volatility helped boosting activity. Moving forward, there is a growing chance that near zero interest rates will severely hit banks’ profit margins. Therefore, bank stocks traded south in New York, along with the energy sector.</p>