Archives of “April 15, 2020” day

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Oil – Texas shale explorer says it’ll halt drilling if state imposes OPEC-style production caps

  
  Analysis
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Diamondback Energy is on of the biggest Texas shale explorers.

  • Chief Financial Officer Kaes Van’t Hof said the company already is in the process of shutting down 30% of its drilling and would take it to zero if the state clamps down on production.
In the event of quotas …
  • “That turns that industry, the service industry, on to the same issues that the restaurant industry is facing today where they’re completely shut down with zero revenue and zero employment.”
I bolded that bit on jobs – a huge issue right now and a very unsubtle threat from the firm. Imposing quotes on US producers was always going to be difficult for this output cut deal.
Info comes via Bloomberg.

Diamondback Energy is on of the biggest Texas shale explorers.

Analysis suggesting the US dollar has topped out

  
  Analysis

USD analysis via ING, the bank says cross-market indicators suggest the dollar may well have topped out

  • Says that there is a growing sense that “the worst may be over for most financial assets”
  • The Fed’s injection of liquidity means that instead of expecting a deflationary ice age US inflation expectations have rebounded  (ING cite inflation swaps and inflation-indexed Treasuries, gold trading above $1,700 and could go higher)
More:
  • market moves suggest confidence amongst investors, at least, is improving
  • commodity markets slowly recovering
  • expect further improvement in US money markets as the Fed’s liquidity injection filters through the system
  • “we may be starting to see the emergence of the risk-on, dollar-off trend that may come to define the rest of 2020”
ING describe gold as a ‘classic inflation hedge’
gold inflation

US President Trump halts funding to the WHO

  
  Analysis
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US funding to the World Health Organisation has been stopped by Trump

  • while US reviews virus warnings regarding China
  • says WHO was late to examine outbreak in China.
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The US contributes around 400m USD to WHO each year, more than any other country.
  • The WHO yearly budget is around 4.8 b USD.
  • WHO uses the money for vaccine trials, distributing test kits, advising governments around the world and such.

New York City has revised its coronavirus death toll very sharply higher, to more than 10,000

  
  Analysis
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NYC says it missed a number of deaths earlier, adding in another 3,700 deaths that were probably caused by COVID-19

Takes the total in the city now to above 10,300
Via the NY Times:
  • officials said they were now including people who had never tested positive for the virus but were presumed to have died because of it
  • The new figures, released by the city’s Health Department, drove up the number of people killed in New York City to more than 10,000 and appeared to increase the overall United States fatality rate by 17 percent, to more than 26,000.
  • Far more people have died in New York City on a per-capita basis than in Italy, the European country with the most deaths.

ICYMI – IMF says Australia’s economy likely one of the worst-hit in the Asian region

  
  Analysis
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For Australia, the key points raised buy the Fund:
  • Australia’s economy will likely be one of the worst-hit economies in the Asian region
  • Of the world’s 20 largest economies, Australia’s performance is forecast to be among the bottom third
  • Australia GDP to shrink by 6.7% this year
  • Will rebound by 2021, growth of 6.1%
Local press is downbeat on the report with headlines such as:
  • Worst since Great Depression: IMF warns of $130b hit to Australia
  • IMF predicts deep recession, V-shaped rebound for Australia
AUD rallied overnight though:
The IMF's latest forecasts were issued as part of its updated World Economic Outlook. Headlines are here:

NASDAQ index closes above its 50 and 200 day moving averages

  
Analysis, US Market
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NASDAQ up for the 4th day in a row

The NASDAQ index is the star performer today, rising for the 4th day in a row closing above its 50 day and 200 day moving averages. The close above the 200 day moving averages the 1st since March 6.  The other indices also had solid days today with the S&P and Dow closing at the highest level since March 10.

The final numbers are showing:
  • S&P index up 84.43 points or 3.06% at 2846.06
  • NASDAQ index up 323.31 points or 3.95% at 8515.74
  • Dow industrial average up 558.99 points or 2.39% at 23949.76
Some of the major gainers today included:
  • Tesla, +9.07%
  • AMD, +7.83%
  • United holdings, +6.72%
  • Adobe, +6.24%
  • Qualcomm, +5.75%
  • Delta Air Lines, +5.59%
  • Raytheon, +5.27%
  • Nvidia, +5.3%
  • Amazon, +5.28%
  • Apple, +5.04%
  • Microsoft, +4.95%
  • J&J, +4.39%
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