The European Central Bank is ramping up its measures to cushion the region against a record economic downturn caused by the lockdowns on business amid the virus outbreak. The monetary authority for the 19 countries that use the euro currency on Thursday lowered the interest rate on cheap loans it provides to banks. It also offered new credit lines to banks to cushion the economy, which suffered its biggest contraction in the first quarter since records began in 1995.

The eurozone economy contracted at a record rate in the first three months of the year and inflation slowed sharply as much economic activity in March came to a halt because of the COVID-19 pandemic, data showed on Thursday. Economists expect even worse numbers for the second quarter.

HSBC on Tuesday said first quarter pre-tax profits almost halved as the banking giant was battered by the global coronavirus pandemic while it embarked on a major restructuring. One of the largest lender in the world reported pre-tax profits of $3.2 billion, down 48% from the same period in 2019, citing credit losses from clients struck by the economic slowdown as a major cause.

The US Federal Reserve, Bank of Japan (BoJ) and European Central Bank (ECB), which together cover almost half of global output, will all convene meetings of policymakers this week after the pandemic-driven freezing of economies and turmoil in financial markets propelled them into action.

Germany's biggest lender Deutsche Bank said it expects to report a net profit of €66 million ($71 million) for the first quarter, beating market forecasts. Turnover is expected to reach €6.4 billion while provisions for credit losses should amount to €500 million, it said in a statement on its website late Sunday.

Sentiment at German companies is catastrophic. The Munich-based ifo Business Climate Index crashed from 85.9 points, seasonally adjusted, in March to 74.3 points in April. This is the lowest value ever recorded, and never before has the index fallen so drastically.

The US economy is expected to contract by double digits as unemployment surges, while the federal deficit is seen exploding to $3.7trn in 2020, the Congressional Budget Office said Friday.

Orders for big-ticket manufactured goods in the US plunged 14.4% in March, the second-biggest decline on record. The worse-than-expected slide underscored the severity of the economic impact from the pandemic.

The European Bank for Reconstruction and Development (EBRD) said on Thursday it would boost its support package by €3bn to help stricken companies and councils across its region mitigate the economic hit from the coronavirus.

The euro zone economy suffered an "unprecedented" collapse according to the latest PMI index put out Thursday by analysis firm IHS Markit.