News / Analysis
Finance Update – Powell ReconsidersFebruary 13, 2020
As the Coronavirus continues to wreak havoc with world markets, Thursday’s death toll in the Hubei Province soared to 242 in a single day, pushing the Yuan down by 5 cents.
Meanwhile, Apple supplier Foxconn said Reuters’ report on resumption of activities was erroneous. Thus, Asian markets continued down about a half percent overnight, Australia’s S&P/ASX200 being the odd man out with a 0.21% increase.
Japan’s producer price index doubled in January (YoY) to 1.7%, pushing the yen by 50 pips, before returning the gain. Consumer The rise in prices for goods and services, resulting in the deterioration of a currency’s purchasi... expectations in Australia for February are down half a percent to 4%, the reading ending a short uptick in the AUD.
European markets rose on a weakening Euro – the DAX up by 0.89%, the FTSE 0.47%, and the CAC 0.83%. December’s industrial production in the EU contracted by a whopping 4.1% YoY, quashing the Euro by another 50 pips against the dollar.
The pound has been falling since peaking yesterday afternoon, despite overnight UK housing prices, which increased in January by 17% – a 4-year record.
Despite his confidence in continuing wage rises and job creation, Fed head Jerome Powell yesterday told the Senate Banking Committee that his organization was preparing to adopt additional A tool used by central banks to stimulate the economy by purchasing securities from the market and/o... measures to stave off a possible recession.
The central bank, he said, would purchase large amounts of government bonds to pressure long-term The cost of accessing money not owned. rates down. The dollar weakened on the announcement, but US markets were up nearly a percent (DOW: 0.94%, Nasdaq: 0.9%).
Earlier, Treasury The US Securities & Exchange Commission is the US regulator of financial markets.. Mnuchin said his boss’ tax cuts would pay for themselves over a 10-year period, despite a trillion-dollar near-term A trade balance that is negative as a result of cost (imports, on the national level) being greater ....
Gold is up $15 per troy ounce on dollar weakness, while oil is down 60 cents a barrel after the EIA yesterday delivered a disappointing 7.5mB increase in crude oil inventories.
The reason for the muted reaction is stronger output cut expectations from OPEC+ based on a drop in Chinese Corona-inflicted demand.
Bitcoin continues its upward trend, present since bottoming out at 6584 in December, holding well above the 10K mark for the 3rd day in a row.
Credit Suisse this morning posted a 69% increase in net profits, despite continued negative central bank interest. Germany’s Commerzbank this morning reported a less-than-expected drop in losses on a 0.5% increase in revenue.
Thyssenkrupp, on the other hand, posted a 77% loss in profits due to weak steel demand; shares for the quarter were down 0.6%. Airbus shares lost about $5 per share during Q4 despite 2019 revenues that are up 11% YoY.
Later today, Ford, Nvidia, and Cisco will be reporting during the US session. Cisco’s yesterday said that Q2 revenues cut the yearly figure by about 4% resulting in a 3% increase in dividends YoY and 5% YoY on EPS which was up to 77 cents. Tomorrow – Beyond Meat and Pepsico.
|07:00 AM GMT||Germany||CPIs (Jan)|
|01:30 PM GMT||US||CPIs & Jobless claims|
|11:50 PM GMT||New Zealand||Business PMI|
|02:00 AM Greenwich Mean Time (usually equals UTC – Universal Coordinated Time). GMT is a time zone, while U... (+1)||China||Fixed A stock, commodity, currency, index or any other entity one may trade or invest in. Investments, Retail Sales & Fixed Asset Investments|