News / Analysis
Finance Update – Back to Work in ChinaMarch 25, 2020
Chinese stores are trying to bring customers back into the fold with millions of dollars’ worth of discount coupons and other enticements, Reuters reports. Asian equities this morning displayed relatively conservative optimist, with Chinese benchmarks up between 2 & 3% but the Nikkei gaining a mouth-watering 8.13%.
Japan’s coincidental and leading indexes were up overnight, despite a 4-point drop in the Jibun Bank Manufacturing PMI – now 44.1 and leaving the Yen bouncing along support at 0.900 as resistance trends down.
DAX futures this morning seem to have breached the 9700 mark, as US optimism spreads eastward. Gains here were led by the Eurostoxx, which added 9.98% in value over a single day.
Preliminary Manufacturing PMIs throughout Europe and the UK came down for March, through surprising to the upside, while services plummeted by more than 20 points across the board – a near sure sign of the approaching recession.
The Dow this morning is making yet another attempt to break the 21K resistance level. It added a confounding 11.37% in trading yesterday, after the US government agreed to a huge $2trillion stimulus package aimed at the economy amidst this health pandemic.
The WHO yesterday warned that the US could become the world’s next virus epicentre, with 662 dead so far. March PMIs in the US followed the European, even as new homes sales contracted by 4.4% in February. Pattern. Dollar futures are down from their Friday highs and now trending at 101-102.
Weekly oil inventories contracted by 1.25 million barrels this past week, based on API data. The commodity has stabilized at $24 and is awaiting further news.
Meanwhile, gold has recovered nicely from week’s start and is currently at 1667, having attacked 1700 last night.
Bitcoin is now completing a week of gains, receiving headwinds from yesterday’s US Corona package, and is currently consolidating towards 6700.
Seeking Alpha analyst Anh Hoang calculates that Google shares are selling at a 50% discount, as Coronavirus pressures stocks momentarily down. And Reuters is reporting an overnight survey that places a fifth of US companies operating in China as “back to normal”.
Further east, as California-based Zoom revenues double YoY, shares are being marked overpriced, despite continued demand in a house-locked world. Neiman Marcus Group Inc, on the other hand, is planning to file for bankruptcy. And Boeing has announced a May target for 737-max production resumption, this as Fitch downgrades company ratings to triple-B
|07:00 AM GMT||UK||CPI, retail PPIs, and sales|
|09:00 AM GMT||Germany||Business Climate|
|11:00 AM GMT||US||Mortgage applications. Durable goods at 12:30, and 5-yr note auction at 5.|
|02:30 PM GMT||Oil||EIA Crude Oil Stocks Change|