Archives of “March 30, 2020” day

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European major indices end the session with mostly gains. Spain’s Ibex down however

  
Analysis, Global Indices

Major indices recovered from sharp declines earlier in the day

European major indices are ending the session with mostly gains. Spain’s Ibex is the exception. Most of the indices are well off of their earlier lows:

The provisional closes are showing:
  • German DAX, +1.6%. The low reached -1.86%
  • France’s CAC, +0.5%. The low reached -3.1%
  • UK’s FTSE 100, +0.9%. The low reached -2.88%
  • Spain’s Ibex, -1.15%. The low reached -3.9%
  • Italy’s FTSE MIB, +0.7%. The low reached -3.0%
in the European debt market, the benchmark 10 year yields are mixed with Germany, France and UK yields lower while Spain, Italy, Portugal yields moving higher:
Major indices recovered from sharp declines earlier in the day_

Trump says he plans a call with Putin today to discuss oil

  
  Analysis
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Trump in Fox News interview

  • Trump says he will the Russian President Putin on Monday to discuss oil and other matters
  • Russia and Saudi Arabia “both went crazy” on oil issue
The US lambasted OPEC and Saudi Arabia for generations for keeping oil prices artificially high and operating a cartel. Now that OPEC has blown up, the same pearl clutchers don’t want anything to do with the free market. The reality is that the US has flooded the world with uneconomic oil for years because of Federal Reserve largess.
In any case, the oil market likes what the President is saying. Russia will certainly listen if the US offers to reduce sanctions. WTI has pared its decline and is back to $20.60 from $20.10 minutes ago.

Saudi Arabia plans to increase oil exports by another 600k bpd starting from May

  
  Analysis
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According to a Saudi energy ministry official

That will bring total crude oil exports by the kingdom to 10.6 mil bpd, as the official says the increase in exports is due to displacing crude with natural gas and drop in local demand.

Epic battle of oil market giants: Who will win?

  
  Analysis
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The tug of war for power in the oil market

IF 1
Once upon a time, lived a very powerful person who decided that he had enough authority to change the world and oust his less powerful rival. At first, his plan succeeded since his less mighty rival went into the shadows.

However, in one remote kingdom near the Persian Gulf, several men, completely unconcerned with questions of authority, decided to teach the arrogant person a lesson and paid him back in his own coin.

It seems strange that no one in Vladimir Putin’s inner circle has warned the president about the disastrous consequences of his recent decision.

Why did nobody in the Ministry of Economy, the Ministry of Finance, or in the Council of Ministers recall that the Russian oil market is in the doldrums? Moreover, there are countries like Saudi Arabia that are literally awash in oil. (more…)

Tokyo Olympics rescheduled to 23 July 2021

  
  Analysis
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TBS reports on the matter

One year and four months feels like an eternity with the world in its current state. If there is no medical breakthrough, who is to say that we won’t be having this same conversation about postponing the Olympics in Q1 next year.

But if the world does return back to normal, one can tend to expect a heavier summer lull in trading especially with the Euro 2020 also postponed to next year.

Singapore’s central bank reduces slope of currency band to zero

  
  Analysis
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The Monetary Authority of Singapore adjusts monetary policy for the country through currency control, not via interest rates.

MAS says it will adopt a zero percent per annum rate of appreciation of the policy band starting at the prevailing level of the SGD NEER

  • there will be no change to the width of the policy band.
  • Says this policy decision hence affirms the present level of the S$NEER, as well as the width and zero percent appreciation slope of the policy band going forward
  • core inflation is likely to remain below its historical average in the near and medium term
  • Says MAS’ money market operations will at the same time provide sufficient liquidity to the financial system
  • will continue to be vigilant over developments in the economy and financial markets, and stands ready to curb excessive volatility in the SGD NEER
  • says both MAS core inflation and CPI -all items inflation are expected to average between −1 and 0% in 2020
  • says external sources of inflation are likely to weaken in the near term amid the global downturn
  • resident unemployment rate is expected to rise and wage growth ease
more to come
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