News / Analysis
Finance Update – Markets Ahoy!April 7, 2020
Asian markets this morning are following the rest of the world optimistically skyward. The Shenzhen Composite is up 2.7%, the Nikkei 0.87 and the Hang Seng 0.45%.
Only Australia’s S&P closed 1.3% in the red. Overall household spending in Japan contracted by 0.3% in February YoY, the coincidental index rising 3 ticks to 95.8.
The Yen is up a quarter percent, after PM Abe announced a state of emergence and promised a $1tr stimulus package.
Australia, as expected, maintained its central bank interest rate as February’s trade surplus fell by nearly a billion dollars to $4.361 bn and job advertising fell at a decade-long record pace, according to Reuters. Nevertheless, the AUD is up 0.77% this session, as is the NZ dollar after that government announced a $1.8bn debt-purchasing program.
European markets showed confidence yesterday, all closing well in the green led by the DAX’s 5.74% rise. The FTSE lagged with a mere 2.34% increase.
Italy’s S&P added nearly 4% after PM Giuseppe Conte announced that the nation had secured €400 billion in relief funding.
The European Union’s investor confidence index for April remains at a very contractionary -52.9. Factory orders in Germany for February fell by a less than expected 1.4%, and Britain’s construction PMI for March came in at 39.3.
US benchmarks rose on average 7-plus% over the session, the Russel2000 actually soaring by 8.7%, after a drop in the daily Corona death toll for New York. This morning sees futures receding from the 22650 high (DJIA).
The FED yesterday tried to ease bank concerns regarding SME aid and payroll protection loans, saying it would allow banks to turn low-interest loans over to the central bank for cash.
Bitcoin finally stepped into a higher range, breaching 7K yesterday morning and peaking overnight at 7382 as markets began showing signs of passing despair.
Gold also breached its 1700 level last night, peaking at 1740 at 7 PM GMT before settling into a sideways trend along 1715.
Oil continues trending around the 27 mark after OPEC-Plus members said they would curb production only if the US agrees to limit its production, too. The commodity added 3% on Monday as signs of possible agreement emanated from Saudi Arabia and Russia, and after Trump expressed his possible acquiescence.
Signalling optimism for the year’s first corona-ravaged quarter earnings season ahead, Samsung overnight reported a possible beat to expectations, operating profits up YoY thanks to demand for its laptop and data centre processors. Shares are up 1.6% on expectations of a 5% increase in revenue.
Levi Straus will also be delivering an interim 1st quarter report, and Merck will be paying dividends later today
|6:00 AM GMT||France||Trade Balance|
|7:30 AM GMT||UK||House Prices|
|8:00 AM GMT||Italy||Retail Sales|
|12:55 PM GMT||US||Redbook Index. Job Openings at 2 PM. Consumer Credit at 7 PM|
|2:00 PM GMT||Canada||Ivey PMI|
|8:30 PM GMT||OIL||API Weekly Inventories|
|11:50 PM GMT||Japan||Trade Balance|
|0:30 AM GMT (+1)||Australia||Home Loans. Investment Home Lending at 1:30|