U.S. Daily Market Review
U.S. stock benchmarks started on a lower side today after the release of an employment report that showed more-than-estimated job last month. The Dow Jones Industrial Average slipped 126 points, or 0.5%, at the open near 21,309.The S&P 500 index dropped 0.4% at 2,518, while the Nasdaq Composite Index lost 0.2% at 7,470. The number of weekly officially claiming unemployment s benefits could soon surge to more than 8 million. In reality, at the week ending March 28, 6,648,000 Americans filed for unemployment.Bank of America Corp (BAC.N) announced that it has already received about 35,000 applications for federally backed small-business loans.The U.S. Transportation Department announced a notice to airlines reminding them they are obligated to refund tickets when they cancel a flight.Additionally, the transportation Department declared that it is receiving a rising number of complaints and inquiries from passengers seeking refunds.
European Daily Market Review
European markets are into a lower side today with shares in France losing the most. The CAC-40 slipped 1.14% while London's FTSE-100 dropped 1.08% and Germany's DAX tumbled 0.40%. The IHS Markit eurozone services purchasing managers index sunk 26.4 from 52.6 in February, the worst-ever reading in the history of the series. In Italy, the services PMI lost 17.4 in March, falling from 52.1 in February. Turkey’s inflation slowed for the first time in the last five months in March, amid lower oil prices.Consumer prices advanced almost 12% from a year earlier, compared with an increase of 12.4% in February, according to the Turkish statistics agency.Moreover, the Turkish lira depreciated as a liquidity squeeze that had pushed up the cost of the currency. The currency fell as much as 1.6% to 6.7112 per USD early in the London session, erasing almost all of Thursday’s rallies.
The Rate Of The USD Gains Ground
The USD rallied during the Asian hours this morning as crude oil prices came off a record session. Presently, the Euro versus the USD trades at $1.0798, which is a loss of $0.00563 or 0.52% from the previous close of $1.08548.The daily range is from $1.0792 to 1.0865, while the trading volume is 89.733K.There is a massive unemployment advance in the United States, marking record rates due to the COVID-19 epidemic as it announced overnight that 6.648 million people in the country filed for unemployment benefits.Moreover, the World Health Organization announced that the number of global COVID-19 cases exceeded 900,000 as of April 2.Japanese bank Nomura stated that estimates an economic loss of around 18% in the first quarter alone.
Gold Prices Drop
Gold prices slipped during the Asian hours this morning even as the U.S. announced a record number of unemployment claims the day before. Now, the precious metal trades at $ 1609.52, which is another decline of $2.55 or 0.16% from the previous close of $ 1612.07.The daily range is from $1606.25 to $ 1617.27, while the trading volume is 134.562K.Washington reported that a record 6.648 million people are now officially unemployment last week, which is almost double analyst predictions of 3.5 million claims prepared.The numbers come as the COVID-19 pandemic is still solidly negatively impacting the economy.Meanwhile, the World Health Organization announced that there are more than 900,000 global COVID-19 cases as of April 2.
Asian Daily Market Review
Asian markets were mixed and little changed for the most
part on Friday as investors failed to grasp hold of the overnight rally on Wall
Street and the largest daily gain on record for crude oil. Instead sentiment
remained downbeat as coronavirus cases continue to grow around the world, and
the global economy remains at high risk of a recession.
In Australia the S&P/ASX 200 is trading 0.4% lower as
the afternoon starts in Sydney. Shares of the big four banks are trading lower
once again, with ANZ losing 1.3%, NAB down 1%, Commonwealth Bank falling 1.1%,
and Westpac off by 1.4%.
Mainland China’s markets are mixed as the Shanghai Composite
trades down by less than 0.1%, but the smaller cap Shenzhen Composite is
gaining 0.2%. Over in Hong Kong equities remain under pressure, with the Hang
Seng trading down by 0.5% to lead losses for major markets in the region.
Japan’s Nikkei has a gain of 0.3% today after the Yen
weakened overnight versus the USD and rival currencies. Shares of market heavy
weight Softbank are trading 0.5% higher today, and Fast retailing is up 0.9%,
while Canon posts a 1.3% gain, but Panasonic has fallen 0.7%.
South Korea’s Kospi is leading gains for the major indices
in the region, trading up by 0.5%, while Taiwan’s Taiex has a loss of 0.5%.
In Southeast Asia markets are also mixed as the Straits
Times in Singapore is falling 0.4% and Malaysia’s KLCI has a 0.2% loss.
Meanwhile the Jakarta Composite in Indonesia is trading up by 1.2% today.
Crude Oil Posts Largest One Day Advance On Record
BP and Royal Dutch Shell in the U.K. and Chevron and Exxon
Mobil in the U.S. led gains for markets on Thursday as traders reacted to news
of a possible end to the crude price war between Saudi Arabia and Russia.
According to Saudi officials they are willing to accept
massive production cuts if other oil producing nations join in. The country is
also trying to put together an emergency meeting of OPEC and other major oil
producers such as Russia in order to discuss possible crude production cuts.
“The Kingdom calls for an urgent meeting of OPEC +
and a group of other countries, with the aim of seeking a fair agreement that
will restore the desired balance to the oil markets,” the official Saudi Press
Agency said Thursday.
Crude was already on the rise overnight, but prices
spiked higher in morning trade in North America after U.S. President Trump
tweeted that he had spoken to the leaders of both Saudi Arabia and Russia, and
that he was expecting a cut of 10 million barrels per day or more in production
from the two.
Oil industry experts cast doubts on the feasibility
of such a large production cut however, saying there wasn’t enough storage for
the two countries to take 10 million barrels a day off the market.
Crude futures responded to the news with their best
one day gain on record. West Texas Intermediate crude for May delivery rose
$5.01, or 24.7%, to settle at $25.32 a barrel, while June Brent crude climbed
$5.20, or 21%, to close at $29.94 a barrel.
U.S. Daily Market Review
U.S. markets in hand with the major world equity markets surged today on the back of a rally in risky assets like oil.Wall Street, the Dow Jones Industrial Average added 331.67 points, or 1.58%, to 21,275.18.The S&P-500 inclined 44.11 points, or 1.79%, to 2,514.61 and the Nasdaq Composite gained 110.17 points, or 1.5%, to to 7,470.75.The yield on the benchmark 10-year Treasury note fell 1.22%. The two-year Treasury yield sunk to a bottom of 0.202%, its bottom since May 2013.The number of officially unemployed Americans jumped to a whole benefit 6.6 million in the week ended March 28., according to the Labor Department.Amazon.com Inc. reported that will start measuring worker temperature checks on more than 100,000 workers each day in some U.S. Any worker with a temperature higher than 100.4 degrees Fahrenheit is being sent home.
European Daily Market Review
European markets are into a mixed pattern today. The CAC-40 surged 0.20% while the FTSE-100 adds 0.15%. The European Central Bank announced that will extend the timeline for the review of its monetary policy strategy until the middle of 2021.European stocks fluctuated Thursday as markets react to developments related to the coronavirus pandemic in the U.S. and around the world.The pan-European Stoxx 600 managed to recover around 0.2% by mid-morning.Moreover, Belgian life insurer Ageas and Swiss travel retailer Dufry soared 14.6% and 11.8%, accordingly.British recruitment giant Hays dropped around 7% after announcing an emergency £200 million ($248.2 million) equity raise and removing its dividend.Lloyds Banking Group Plc will offer interest-free overdrafts and credit card payment freezes to customers, having tough times during these stagnation times.
The rate of GBP/EUR advanced.The GBP versus the Euro (GBP/EUR) gained 0.4% today, with the pairing currently trading around €1.135.Presently, the Euro against the GBP trades at 0.8789 GBP, which is a decline of 0.00671 or 0.76% from the previous close of 0.88569.The daily range is from 0.8787 to 0.8856, while the trading volume is 90.792K.The Euro (EUR) is still having hard time as the E.U is failing to follow an united approach to the financial damage caused by the coronavirus pandemic.The Pound (GBP) has extended its higher path for a seventh session in a row today despite the present tensions over the negative impact the coronavirus will have on the British economy.In addition, the GBP managed to gain ground from rising hopes that UK-EU trade negotiations are expected to be delayed.
Crude Oil Prices Advance
Crude oil futures partly rallied this morning after U.S. President Donald Trump stated that Saudi Arabia and Russia are likely to come up with a trade deal soon to end their oil price war.Now, oil trades at $22.12, which is another gain of $ 0.95 or 4.47% from the previous close of $21.18.The daily range is from $20.75 to $22.53, while the trading volume is 171.786K.President Trump declared that after talking with the leaders of both Russia and Saudi Arabia he feels that they will reach an agreement in the next few days.Additionally, said he would be meeting with oil executives and possibly will discuss a range of options to help the industry amid the massive hit to demand as the coronavirus pandemics negatively affects demand levels.Saudi Arabia's crude supply soared Wednesday to a record of more than 12 million barrels per day.U.S. crude stockpiles jumped 13.8 million barrels in their biggest weekly incline since 2016.
Asian Daily Market Review
Asian markets are broadly lower Thursday as global losses
continue on COVID-19 linked recession fears. The rapid spread of the virus is
continuing around the world, causing global governments to implement measures
that have left the global economy mostly frozen.
Australia’s S&P/ASX 200 is leading the way lower with a
2.7% fall, with all sectors in the red, but the banks contributing the greatest
losses. Shares of ANZ have slipped by 5.9%, while NAB is off by 5.7%,
Commonwealth Bank trades 4.9% lower, and Westpac Bank is losing 5.2%. Major
miners BHP and Rio Tinto have losses of 2.8% and 2.7% respectively.
In Japan the Nikkei has a loss of 1.8%, with the stronger
Yen weighing on shares of Japan’s exporters. Shares of Sony are bucking the
falling trend with a gain of 0.9%, and market heavy weight Softbank is also
edging higher by 0.1%. Meanwhile shares of Panasonic are 2.4% lower, Canon is
down 1.4%, and Toyota has a 0.4% loss.
Mainland China’s Shanghai Composite has opened to a loss of
0.2%, while the smaller cap Shenzhen Composite is inching lower by 0.1%. In
Hong Kong the Hang Seng is trading down by 1.2%, with shares of HSBC falling
5%, and Ping An 1.5% lower. Market heavy weights Tencent and Alibaba are also
trading lower by 0.6% and 0.4% respectively.
In South Korea the Kospi has a loss of 0.8% as SK Hynix
falls 1.5%, and Taiwan’s Taiex is down 0.5% with Taiwan Semiconductor falling
In Southeast Asia Singapore’s Straits Times Index has a 1.4%
loss, and Malaysia’s KLCI is edging down by 0.1%.
The Good And Bad In Telecommunications Stocks
Investment banks JPMorgan and Goldman Sachs weighed in on
telecommunications stocks Wednesday, lowering guidance on one, while raising
guidance on another.
At JPMorgan, analyst Philip Cusick downgraded AT&T from
overweight to neutral and cut his price target on the stock to $35 from $38. He
said there are concerns over the media business due to coronavirus, and more
concerns over the deleveraging plans of the company going forward.
While CNN is benefitting from the increased demand for news
coverage, both TBS and TNT are suffering significantly due to the lack of live
sports coverage. Another concern revolves around AT&T’s attempts to
de-lever by selling assets. With uncertainty for the global economy it’s
uncertain when the company might be able to complete sales of some of its
On a more positive note Cusick said he isn’t worried about
the 7.4% dividend, which remains safe. And the launch of HBO Max in May should
help AT&T’s wireless business through tie-ins, but the impact will be far
less than it could have been.
On the other side of the spectrum Goldman Sachs analyst Brett
Feldman reiterated his buy rating on Verizon, and added it to Goldman’s “Conviction
Feldman praised the well covered 4.3% dividend at Verizon,
while also saying he likes the stable wireless business, strong balance sheet,
and attractive risk/reward potential. He went on to note that AT&T is one
of the least leveraged large-cap telecom and cable operators in the U.S.
Shares of AT&T lost 3.8% Wednesday, while Verizon fell 1.5%.
Over the past month AT&T is 20% lower, while Verizon has fallen just 2%.
U.S. Daily Market Review
The leading U.S. indexes largely fell as Wall Street became the second quarter on a sour note amid mounting concerns over the coronavirus outbreak.The Dow Jones Industrial Average traded retreated 700, or 3.4%. The S&P-500 tumbeld 3.7% while the Nasdaq Composite slipped little less 3%. President Donald Trump yesterday announced that the U.S. should prepare for a “very, very painful two weeks” from the rampant coronavirus. White House estimated that the deaths from the virus could result in around 100,000 and 240,000 in the U.S.Companies reduced payrolls by 27,000 in early March before the worst of the coronavirus-induced economic stagnation.The real drops for the month were far worse predicted by the millions of people who already have filed unemployment figures.
European Daily Market Review
European markets entered into a massive retreat today with shares in France leading the region. The French CAC-40 dropped more than 3.70% while Germany's DAX dropped 3.26% and London's FTSE-100 fell 3.20%.Fiat Chrysler Automobiles NV reported a loss of 10% in U.S. auto sales in the first quarter.The automaker announced the sell of 446,768 units in the first three months of 2020, versus to 498,425 units a year earlier. The number of COVID-19 cases jumped to a whole 862,234, while the number of deaths rose to 42,404 according to aggregated data from Johns Hopkins Whiting School of Engineering's Centers for Systems Science and Engineering.Moreover, French passenger car registrations sunk a large 72% compared with the previous year, according to a statement Wednesday from the CCFA trade group. The German Continental AG removed its financial guidance for the year and said more than 40% of its plants have closed its doors.
The USD Advances
The rate of the USD rallied today as traders further look for safe havens. The US Dollar Index gained 0.04% to 99.135 by 12:13 AM. Currently, the Euro versus the USD trades at $1.0940, which is a very minor loss of $0.00890 or 0.81% from the previous close of $1.10292.The daily range is from $1.0938 to1.1039, while the trading volume is 173.777K.Moreover, the demand for the safety of USD further extended after reports in the U.S. announced that many experts suggest that the virus could kill between 100,000 and 240,000 Americans.The virus has now killed more than 42,000 people and infected more than 851,000 in 205 countries.