Archives of “April 18, 2019” day

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More China stimulus on the way? Rumours say yes.

  
Analysis, Economy

An ICYMI on reports yesterday that China is planning further stimulus.

Take care, sources are unnamed. But hey, rumours and financial markets are never separated for too long!
Bloomberg report:
  • Officials are drafting measures to bolster sales of cars and electronics
The proposals
  • include subsidies for new-energy vehicles, smartphones and home appliances
  • are at a consultation stage with other government branches, with no guarantee that they’ll be approved, the people said.

Link for more. 

Japan Nikkei Manufacturing PMI for April, preliminary: 49.5 (prior 49.2)

  
Analysis, Economy

The flash reading for this, with the ‘final’ to follow on May 7

Comes in at 49.5
  • an improvement from March’s 49.2
  • still below 50, thus still showing contraction
In the sub measures, the new export index fell at its fastest pace in 3years.
  • to 47.1 (from March’s 48.1)
  • Trade tensions and weaker offshore demand a factor here of course.
 The employment index is higher, at 52.2 (prior 51.4)
—
Yen has been sleepy the whole morning here so far. A circa 10 point range only for USD/JPY.

China growth pick up and the EUR vs AUD contest

  
Analysis, Forex

Scanning a few overnight notes, this from Société Générale on the euro and the Australian dollar.

But first, on China:
  • China’s stimulus package has delivered better than expected
  • Industrial production growth has picked up
  • retail sales growth has picked up
  • The equity market is the winner … The FX market looks on jealously
Strategically, we like EUR/AUD. Both EUR and AUD benefit from a Chinese pick-up, but only the euro is vulnerable to a US/European trade dispute.

US stocks end the session with modest losses.

  
Analysis, US Market

Give up gains

The major US stock indices are ending the session with modest losses after being higher earlier in the day. The final numbers are showing:
  • S&P index -6.6 points or -0.23% at 2900.46. The hired for the day extended to 2918.00.
  • NASDAQ index -4.147 points or -0.05% at 7996.07. The high for the day reached 8052.395.
  • Dow industrial average -3.12 points or -0.01% at 26449.54. The high for the day reached 26501.02
The NASDAQ 100 today hit a record high intraday.

Winners on the day inccluded:

  • QUALCOMM, +12.25%
  • United Continental, +4.78%
  • Intel, +3.26%
  • Goldman Sachs, +2.97%
  • J.P. Morgan, +2.87%
  • Morgan Stanley +2.64%
  • Apple, +1.95%
  • Citigroup, +1.5%
  • Walt Disney, +1.44%
Losers included:
  • Intuitive Surgical, -6.49%
  • Stryker, -4.67%
  • Merck and Company, -4.74%
  • IBM, -4.18%
  • Pfizer, -2.57%
  • Gilead, -2.0%
  • United health, -1.83%
  • Travelers, -1.8%
  • Verizon, -1.72%
  • AMD, -1.58%
  • Netflix, -1.31%
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