Market Talk – March 13, 2020

ASIA:

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 decreased 1,128.58 points or -6.08% to 17,431.05
  • Shanghai decreased 36.06 points or -1.23% to 2,887.43
  • Hang Seng decreased 276.16 points or -1.14% to 24,032.91
  • ASX 200 increased 234.70 points or 4.42% to 5,539.30
  • Kospi decreased 62.89 points or -3.43% to 1,771.44
  • SENSEX increased 1,325.34 points or 4.04% to 34,103.48

The major Asian currency markets had a mixed day today:

  • AUDUSD decreased 0.0101 or 1.61% to 0.6174
  • NZDUSD decreased 0.0074 or 1.22% to 0.6044
  • USDJPY increased 2.9250 or 2.80% to 107.5090
  • USDCNY increased 0.0088 or 0.13% to 7.0307

Precious Metals:

  • Gold decreased 38.55 USD/t oz. or -2.45% to 1,536.95
  • Silver decreased 1.09 USD/t. oz or -6.93% to 14.6300

Some economic news from last night:

New Zealand:

Business NZ PMI (Feb) increased from 49.6 to 53.2

FPI (MoM) (Feb) decreased from 2.1% to 0.0%

South Korea:

Export Price Index (YoY) (Feb) increased from -2.5% to -1.8%

Import Price Index (YoY) (Feb) decreased from 2.7% to -0.9%

Some economic news from today:

China:

FDI (Feb) decreased from 4.00% to -8.60%

Japan:

Tertiary Industry Activity Index (MoM) increased from -0.3% to 0.8%

India:

Bank Loan Growth decreased from 6.4% to 6.1%

Deposit Growth decreased from 9.2% to 9.0%

Exports (USD) (Feb) increased from 25.97B to 27.65B

Imports (USD) (Feb) decreased from 41.14B to 37.50B

Trade Balance (Feb) increased from -15.17B to -9.85B

FX Reserves, USD increased from 481.54B to 487.24B

EUROPE/EMEA:

The major Europe stock markets had a green day today:

  • CAC 40 increased 74.11 points or 1.83% to 4,118.36
  • FTSE 100 increased 128.63 points, or 2.46% to 5,366.11
  • DAX 30 increased 70.95 points or 0.77% to 9,232.08

The major Europe currency markets had a mixed day today:

  • EURUSD decreased 0.01054 or -0.94% to 1.10796
  • GBPUSD decreased 0.0248 or 1.97% to 1.2323
  • USDCHF increased 0.0110 or 1.16% to 0.9553

Some economic news from Europe today:

Germany:

German CPI (MoM) (Feb) increased from -0.6% to 0.4%

German CPI (YoY) (Feb) remain the same at 1.7%

German HICP (YoY) (Feb) increased from 1.6% to 1.7%

German HICP (MoM) (Feb) increased from -0.8% to 0.6%

German WPI (YoY) (Feb) decreased from 0.3% to -0.9%

German WPI (MoM) (Feb) decreased from 1.0% to -0.9%

Norway:

Interest Rate Decision decreased from 1.50% to 1.00%

France:

French CPI (MoM) (Feb) increased from -0.4% to 0.0%

French CPI (YoY) decreased from 1.5% to 1.4%

French HICP (MoM) (Feb) increased from -0.5% to 0.0%

French HICP (YoY) (Feb) decreased from 1.7% to 1.6%

Spain:

Spanish CPI (MoM) (Feb) increased from -1.0% to -0.1%

Spanish CPI (YoY) (Feb) decreased from 1.1% to 0.7%

Spanish HICP (MoM) (Feb) increased from -1.4% to -0.1%

Spanish HICP (YoY) (Feb) decreased from 1.1% to 0.9%

US/AMERICAS:

Equities began to recover this Friday after yesterday’s session experienced a low not seen in 33 years.

President Trump officially declared a national emergency in the US in a move that will free funds to fight the spread of the disease. “No resource will be spared,” President Trump announced. The FDA has approved of a new coronavirus test; 1.4 million test kits will be available next week and 5 million will be available by the end of the month. The government is working with pharmacies to develop drive-thru testing at critical locations that will enable people exhibiting symptoms to take a test without leaving their car.

Technology will come into play to combat this virus such as telehealth providers that will enable patients to be seen remotely. At Google, 1,700 engineers are working to put out a new website that will help Americans determine if they need a coronavirus test, and if so where to go to receive an examination. Some are calling the coronavirus an unintentional societal experiment that will show how the world operates on a remote basis.

Canadian Prime Minister Justin Trudeau announced on Thursday that he will be placing himself under quarantine after his wife began to exhibit symptoms of the coronavirus. This Friday, Sophie Grégoire Trudeau tested positive for the virus. “I am feeling fine & I’m not exhibiting any symptoms of the virus, but I will also be following the advice of our doctor and I will continue to self-isolate for now. During that time, as I did today, I’ll continue to work from home and conduct meetings via video & teleconference,” Trudeau tweeted.

Canada’s central bank surprised the marketplace by cutting the benchmark rate by 50 basis points to 0.75%. “This unscheduled rate decision is a proactive measure taken in light of the negative shocks to Canada’s economy arising from the COVID-19 pandemic and the recent sharp drop in oil prices,” the Bank of Canada stated.

US Market Closings:

  • Dow advanced 1,985 points or 9.35% to 23,185.62
  • S&P 500 advanced 230.38 points or 9.29% to 2,711.02
  • Nasdaq advanced 673.07 points or 9.35 points to 7,874.88
  • Russell 2000 advanced 86.14 points or 7.67% to 1,209.07

Canada Market Closing:

  • TSX Composite advanced 1,207.88 points or 9.66% to 13,716.33
  • TSX 60 advanced 81.02 points or 10.84% to 828.77

Brazil Market Closing:

  • Bovespa advanced 10,095.38 points or 13.91% to 82,677.91

ENERGY:

The oil markets had a green day today:

  • Crude Oil increased 0.88 USD/BBL or 2.84% to 31.8700
  • Brent increased 1.41 USD/BBL or 4.32% to 34.0700
  • Natural gas increased 0.037 USD/MMBtu or 1.91% to 1.9780
  • Gasoline increased 0.0026 USD/GAL or 0.28% to 0.9422
  • Heating oil increased 0.0039 USD/GAL or 0.34% to 1.1662
  • Top commodity gainers: Brent (4.32%), Crude Oil (2.84%), Natural Gas (1.91%), and Lumber (6.03%)
  • Top commodity losers: Silver (-6.93%), Cocoa (-8.57%), Lean Hogs (-5.93%), and Palladium (-8.23%)

The above data was collected around 14.29 EST on Friday.

BONDS:

Japan -0.06%(-2bp), US 2’s 0.47% (-0bps), US 10’s 0.92%(+11bps); US 30’s 1.53%(+7bps), Bunds -0.74% (+1bp), France -0.32% (-2bp), Italy 1.81% (-8bp), Turkey 11.67% (-14bp), Greece 1.76% (+17bp), Portugal 0.81% (+9bp); Spain 0.63% (+15bp) and UK Gilts 0.42% (+15bp).