Archives of “February 2020” month

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Nikkei 225 closes higher by 0.49% at 23,084.59

  
Analysis, Global Indices

Asian equities rebound amid positive cues since overnight trading

Nikkei 04-02

Wall Street posted decent gains in overnight trading and Chinese markets are also observing more calm on the day, helping to give investors a morale boost after the more tepid and cautious tone in Asia Pacific trading yesterday.

The Hang Seng is up by 1.0% while we are seeing the Shanghai Composite higher by 1.2% while the CSI 300 index is up by 2.5% on the day currently, recovering from the beatdown suffered yesterday after returning from the extended break.
US futures and Treasury yields are also keeping higher as fears surrounding the coronavirus outbreak situation is seen receding for now. That is keeping yen pairs higher on the day with USD/JPY up to 108.82 currently, while gold is down 0.3% to $1,572 at the moment.

Solid recovery day for the US stock indices, but Dow and S&P lag

  
Analysis, US Market

NASDAQ composite index leads the way with a 1.34% gain

The US stock market had a solid recovery today especially in the NASDAQ index. That index rose 1.34% on the day. On Friday the NASDAQ index fell by -1.59%. The S&P and Dow indices both lagged, however.
The final numbers for the major indices are showin:
  • S&P index +23.4 points or 0.73% at 3248.92. The index fell by -1.77% on Friday. The high today reached 3268.44. The low extended to 3235.66
  • Nasdaq index rose 122.46 points or 1.34% at 9273.40. The high price reached 9299.85. The low extended to 9188.55
  • Dow rose 143.78 points or 0.51% at 28399.83. The high reached 28630.39. The low extended to 28319.65

In after hours trading alphabet reported

  • revenues of $46.08 billion versus estimates of $46.94 billion
  • earnings-per-share came in at $15.35 versus $12.53
The current shares are trading down -2.2% at $1450.05
Major indices in the US close higher but off the highs levels

China reportedly considers lowering 2020 growth expectations due to coronavirus hit

  
Analysis, Economy

Bloomberg reports, citing people familiar with the matter

China

The report says that Chinese officials are evaluating whether the target for economic growth this year – touted to be ‘around 6% growth’, should be softened as part of a broader review of how the government’s plans will be impacted by the new coronavirus outbreak.

Adding that officials are also considering more measures to bolster the economy, although final decisions on the above matters have not been made.
I reckon the date to watch for any official changes to China’s economic target and plans will come via the National People’s Congress, which is to begin on 5 March.
But given the situation surround the coronavirus outbreak, we’ll have to see if the session will progress according to schedule or not – should things not calm down by then.

OPEC+ said to be considering additional 500k bpd oil output cut due to virus impact

  
  Analysis
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Reuters reports, citing two unnamed OPEC sources on the matter

The sources say that most OPEC members agree on the need to cut oil output further and that they are considering to have a meeting on 14-15 February now. Just one to keep in mind as such a move may provide some relief to oil prices in the near-term.

That said, once again it will be an issue on compliance to see how effective these cuts are. Oil is getting a bit of a pop on the headlines, with WTI crude now up 0.4% to $51.80.
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