Market Talk – April 23, 2020

ASIA:

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 291.49 points or 1.52% to 19,429.44
  • Shanghai decreased 5.48 points or -0.19% to 2,838.50
  • Hang Seng increased 83.96 points or 0.35% to 23,977.32
  • ASX 200 decreased 4.10 points or -0.08% to 5,217.10
  • Kospi increased 18.58 points or 0.98% to 1,914.73
  • SENSEX increased 483.53 points or 1.54% to 31,863.08

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.0081 or 1.28% to 0.63794
  • NZDUSD increased 0.0087 or 1.46% to 0.60127
  • USDJPY decreased 0.1630 or -0.15% to 107.67
  • USDCNY decreased 0.0104 or -0.15% to 7.08867

 

Precious Metals:

  • Gold increased 22.10 USD/t oz. or 1.29% to 1,735.55
  • Silver increased 0.21 USD/t. oz or 1.40% to 15.3670

 

 

Some economic news from last night:

South Korea:

GDP (YoY) (Q1) decreased from 2.3% to 1.3%

GDP (QoQ) (Q1) decreased from 1.3% to -1.4%

Japan:

Foreign Bonds Buying decreased from -193.9B to -431.5B

Foreign Investments in Japanese Stocks increased from -15.5B to -3.5B

Manufacturing PMI (Apr) decreased from 44.8 to 43.7

Services PMI decreased from 33.8 to 22.8

Australia:

Manufacturing PMI decreased from 49.7 to 45.6

Services PMI decreased from 38.5 to 19.6

New Zealand:

Credit Card Spending (YoY) decreased from 2.2% to -8.2%

Some economic news from today:

Japan:

Leading Index increased from 90.5 to 91.7

Singapore:

CPI (YoY) (Mar) decreased from 0.3% to 0.0%

Hong Kong:

CPI (YoY) (Mar) increased from 2.2% to 2.3%

EUROPE/EMEA:

The well anticipated meeting of the European Union to discuss financial matters to help Europe recover from the coronavirus was a disaster and lasted only four hours. According to the paper, the biggest bottle neck was the actual video conferencing technology, with senior officials stating the importance of the talks and it was impossible to conclude via video conference and a physical meeting would be required in the summer. The European Commission head is adamant that the only way for recovery is to work with the EU budget, with perhaps creating a comingled fund which would share the debt burden.

The Independent were a little more optimistic by the progress suggesting that the EU leaders have given Brussels the go ahead to draw up a trillion euro plan for recovery.

German Chancellor Angela Merkel reiterated that the coronavirus pandemic was still in its early stages, and that German states shouldn’t rush back to normality, instead making sure rules such as social distancing.

The UK Guardian, pointed at a possible “Nexit,” with Netherlands becoming increasingly frustrated at the idea of spending big in order to finance the recovery.

 

The major Europe stock markets had a green day today:

  • CAC 40 increased 39.20 points or 0.89% to 4,451.00
  • FTSE 100 increased 55.98 points, or 0.97% to 5,826.61
  • DAX 30 increased 98.76 points or 0.95% to 10,513.79

 

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.0017 or -0.16% to 1.07938
  • GBPUSD increased 0.0026 or 0.21% to 1.23503
  • USDCHF increased 0.0015 or 0.15% to 0.97401

 

Some economic news from Europe today:

France:

French Business Survey (Apr) decreased from 98 to 82

French Manufacturing PMI (Apr) decreased from 43.2 to 31.5

French Markit Composite PMI (Apr) decreased from 28.9 to 11.2

French Services PMI (Apr) decreased from 27.4 to 10.4

UK:

Public Sector Net Borrowing (Mar) increased from 0.07B to 2.33B

Public Sector Net Cash Requirement (Mar) increased from 1.350B to 7.208B

Composite PMI decreased from 36.0 to 12.9

Manufacturing PMI decreased from 47.8 to 32.9

Services PMI decreased from 34.5 to 12.3

CBI Industrial Trends Orders (Apr) decreased from -29 to -56

Germany:

GfK German Consumer Climate (May) decreased from 2.7 to -23.4

German Composite PMI (Apr) decreased from 35.0 to 17.1

German Manufacturing PMI (Apr) decreased from 45.4 to 34.4

German Services PMI (Apr) decreased from 31.7 to 15.9

Norway:

Industrial Confidence (Q1) decreased from -0.2 to -17.5

Unemployment Rate (Feb) decreased from 3.7% to 3.5%

Italy:

Italian Trade Balance Non-EU (Mar) increased from 5.10B to 5.21B

Euro Zone:

Manufacturing PMI (Apr) decreased from 44.5 to 33.6

Markit Composite PMI (Apr) decreased from 29.7 to 13.5

Services PMI (Apr) decreased from 26.4 to 11.7

US/AMERICAS:

US Treasury Chief Steve Mnuchin finally announced a timeframe for when the government anticipates the US economy will reopen. “We’re looking forward to, by the time we get later to the summer, having most of, if not all of, the economy open,” Mnuchin said this Wednesday. Americas debt continues to deepen each day that the economy is shutdown. Mnuchin defended the latest $484 billion aid package that was passed on Tuesday by saying it was akin to fighting a war and said that the Trump administration is “sensitive to the economic impact of putting on debt.”

After receiving backlash for allegedly overlooking smaller businesses, the Small Business Administration (SBA) issued a new set of guidelines for companies wishing to receive Paycheck Protection Program (PPP) funds. Businesses are now required to confirm that they need the funding and do not have access to other sources of liquidity. This confirmation is required in good faith. “It is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith,” a representative from the SBA said, “and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.” Businesses that do not comply with the new guidelines are asked to return the funds they received by May 7.

President Trump officially signed a bill today that will temporarily suspend immigration into the US. Children and spouses of US citizens and military personnel are exempt from the ban.

US Market Closings:

  • Dow advanced 39.44 points or 0.17% to 23,515.26
  • S&P 500 declined -1.51% or -0.05% to 2,797.80
  • Nasdaq declined -0.63 of a point of -0.01% to 8,494.75
  • Russell 2000 advanced 12.54 points or 1.04% to 1,214.06

Canada Market Closings:

  • TSX Composite declined 37.07 points or -0.26% to 14,251.09
  • TSX 60 declined 3.94 points or -0.46% to 861.97

Brazil Market Closing:

  • Bovespa declined 1,013.85 points or -1.26% to 79,673.30

ENERGY:

WTI bounced up another 20%+ today, with Brent crude rising 5%. Yesterday’s news brought a suggestion that US President Trump would be banning imports of oil in order to prop up the US’ WTI market.

The oil markets had a mixed day today:

  • Crude Oil increased 4.16 USD/BBL or 30.19% to 17.9400
  • Brent increased 1.98 USD/BBL or 9.72% to 22.3500
  • Natural gas decreased 0.071 USD/MMBtu or -3.67% to 1.8640
  • Gasoline increased 0.0181 USD/GAL or 2.51% to 0.7392
  • Heating oil increased 0.0469 USD/GAL or 5.95% to 0.8356

The above data was collected around 11.43 EST on Thursday.