Archives of “February 2020” month

rss

UBS note a big fall in iPhone demand in China in January – February “likely to be far worse”

  
  Analysis
#  #
Apparently still some folks about not taking this outbreak seriously.
Anyways, UBS via Bloomberg:
  • Apple iPhone sales January… Demand for the product fell 28% compared with the previous month, a bigger decline than usual for that time of year
  • “February numbers are likely to be far worse due to both supply and demand issues related to the virus outbreak”
More:
  • company also closed all of its 42 physical stores in mainland China
  • beginning to reopen them now.
  • The situation is so fluid that Apple hasn’t given a new revenue forecast

USD/JPY to 120? Here are a 2 reasons.

  
Analysis, Forex

A couple of analysts on the yen, despite the ‘flight to safety’ see a case for it to weaken.

  • S&P ratings say if economic growth in Japan slows further than expected (vs. the US) yen to weaken as a ‘shock absorber’ with BOJ monetary policy setting rates already so low.
  • AMP (in Australia) says if the virus outbreak in Japan worsens and the US remains relatively free of the outbreak USD/JPY could test 120

US to begin testing coronavirus vaccine in late April, results in July or August

  
  Analysis
#  #  #  #  #

For those looking for a shot of hopium, the WSJ have you covered.

  • Drugmaker Moderna has shipped the first batch of its rapidly developed coronavirus vaccine to U.S. government researchers
  • first human tests … by the end of April to start a clinical trial
  • Initial results could become available in July or August
Link here. (Journal may be gated)
“Late” April is what, two months away? Ugh.
Until then…
For those looking for a shot of hopium, the WSJ have you covered.

Dow tumbles more than 1000 points. Worst day since Feb 8, 2018

  
Analysis, US Market
#  #  #  #  #  #  #  #  #  #

S&P worse day since December 2018

The Dow is closing down over 1000 points on the day. It is the workstations February 8, 2018. The S&P index at its worst day since December 2018.  The Dow, S&P and Nasdaq each fell over 3.3% on the day with the NASDAQ hit the hardest at -3.71%.
The Dow and the S&P are now negative on the year:
  • Dow -2.02%
  • S&P index, -0.15%
  • The Nasdaq index is still up on the year at +2.77%
The final numbers are showing:
  • S&P index -111.82 points or -3.35% at 3225.93.  The low price for the day reach 3214.65. The high extended to 3259.81.
  • Nasdaq index fell minus 355.309 points or -3.71% at 9221.28. The low for the day reached 9166.00. The high reached 9322.879.
  • Dow fell -1031.33 points or -3.56% at 27961. The low for the day reached 27912.44. The high for the day was up at 28402.93

Big losers on the day include:

  • United health, -7.87%
  • AMD, -7.83%
  • Tesla, -7.49%
  • Schlumberger, -7.4%
  • Nvidia, -7.13%
  • Delta airlines -6.31%
  • Twitter, -6.29%
  • Wynn Resort, -6.03%
  • Intuitive Surgical -5.38%
  • Morgan Stanley, -5.21%
  • Charles Schwab, -5.19%
  • FedEx -5.16%
  • Citigroup, -5.10%
  • American Express, -4.97%
  • Cisco, -4.95%
  • Visa, -4.82%
Are there any winners today?
  • Gilead, +4.66%
  • US steel, +1.73%
  • Chewy, +1.3%
  • First Solar, +1.25%
  • Verizon, -0.3%. Verizon was the strongest of the Dow 30 stocks
  • General Mills only fell -0.37%

 

An ugly day in the European markets. Big declines across the board coronavirus spread.

  
Analysis, Global Indices

German DAX down 4%.

The European markets are now closed and it was an ugly one today. The major indices all fell sharply as global fear about the spread of the coronavirus takes solid hold on growth prospects.  If anything, the uncertainty about the spread is worrying investors.

The provisional closes are showing
  • German DAX fell -4.0%. The low reached -4.4%
  • France’s CAC fell -4.1%. The low reached -4.39%
  • UK’s FTSE 100 fell -3.5%. The low reached -3.91%
  • Spain’s Ibex fell -4.0%.  The low reached -4.32%
  • Italy’s FTSE MIB fell -5.5%. The low reached -6.13%
In the European debt market, the benchmark 10 year yields are mostly lower with the exception of the Italian yield as investors flee the risk from that market.
German DAX down 4%.
In other markets as European/London traders look to exit:
  • spot gold is up $30.68 or 1.087% at 1673.94
  • WTI crude oil futures is getting crushed and is trading down $-2.57 or -4.81% at $50.81
In the US stock market, the major indices are down sharply but off session lows
  • S&P index -100 points or -3.01% at 3237.30. The low reached 3231.52
  • NASDAQ index -3.43 points or -3.59% at 9232.33. The low price reached 9166.00
  • Dow is down -915 points or -3.16% at 28077. The low reached 27995.37

US Treasury 10-year yields fall below 1.40% as risk aversion ramps up

  
  Analysis
#  #  #  #

10-year yields are down by nearly 8 bps on the day now

USGG10YR

10-year Treasury yields have already broken the low from last year and now the 2016 low at 1.318% looks set to be on sight. Meanwhile, 30-year yields are hitting fresh record lows at 1.848% to start the European morning as the risk-off mood ramps up.
In the currencies space, USD/JPY is easing slightly to just under 111.50 for now as the likes of the aussie and kiwi stay pressured on the day.
Meanwhile, the greenback is extending gains against the pound and loonie with cable down to 1.2918 while USD/CAD is up to 1.3288 currently.
Go to top