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Based on Ed Yardeni, economies are recovering "fairly nicely" from the "lockdown recession".

A person wears a protective face mask while carrying shopping bags in front of Trader Joes on August 11, 2020 in New York City.

Noam Galai | Getty Images

The worst blow of the coronavirus pandemic appears to be over and markets could see revenue rebound from here, market veteran Ed Yardeni told CNBC on Tuesday.

"We have weekly indicators that point to a recovery in revenue," he told CNBC's Street Signs Asia. "We believe the second quarter was the low point for both sales and earnings."

The president of Yardeni Research pointed out indicators such as retail sales and new and existing home sales that were "very strong".

Last week, retail giants Walmart, Target, Lowe's and Home Depot reported huge sales increases and ruined Wall Street estimates.

Yardeni said, "All in all, we are still seeing economies recovering pretty well from what is essentially a lockdown recession."

In a statement earlier this week, Citi Private Bank pointed to the effectiveness of government incentives to "counter the deepest effects of the COVID recession."

"The generally good health of the global economy prior to COVID and the swift fiscal measures taken by governments have resulted in a rebound in global activity that has been extremely sharp and indeed V-shaped," strategists wrote.

They added that it seemed "business as usual" for large parts of the population when it came to spending, and attributed the spending boom to what they called "substitution effects". For example, people spend on improving their homes instead of saving, or on online purchases instead of in-store retail.

These "substitution effects" were so "robust" that they led to disruptions in the supply chain and inventory depletion.

"At current production rates, retail inventories will continue to decline in the third quarter. We believe this will hold back US GDP through the end of the year, but it will be a driver of a future recovery in industrial activity and trade," Citi wrote Private bank. "We have some catching up to do during a pandemic."

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