Archives of “April 2020” month

rss

Hong Kong oil ETF drops nearly 50% in a day

  
  Analysis

Samsung S&P GSCI Crude Oil ER Futures ETF has lost 45% in HK today

  • the biggest decline & to its the lowest level since trading began in May 2016
Samsung Asset Management (Hong Kong) manages the fund
  • fund will sell its entire holdings of June oil contracts and buy September contracts.
  • warned that in a “worst case scenario,” the net asset value of the fund may drop to zero and investors may suffer “a total loss” of their investments
Samsung S&P GSCI Crude Oil ER Futures ETF has lost 45% in HK today
If you’d like to check out the picture in Singapore, FT have this:
  • The collapse of one of Singapore’s biggest oil traders has raised the prospect of a severe liquidity crunch in the city-state’s under-pressure commodities sector, threatening a wave of defaults and bankruptcies.

More on oil – grim outlook

  
  Analysis
#  #  #  #  #  #  #  #

Scanning across some notes on OPEC and crude, some snippets … not optimistic:

Via RBC:
  • OPEC+ is apparently in crisis management mode
  • We think OPEC+ may make more headway by sharpening its compliance messaging, particularly around perennial underperformers, most notably Russia.
  • we think Saudi Arabia may be amenable to dropping production even further
  • none of these measures will arrest the immediate demand destruction and storage saturation problems that are weighing so heavily, particularly on US prices, they could potentially help ensure a better back half of the year if the COVID-19 crisis is contained
(Bolding above is mine)
Via TD:
  • Although we don’t expect negative prices to remain  …  the imbalance in the offer vs. demand and storage capacity issues could see a repeat of this issue.

UK is “throwing everything” at developing a coronavirus vaccine – human trials begin Thursday

  
  Analysis

UK Health Secretary Matt Hancock spoke in a briefing earlier:

  • government is “throwing everything” at developing a coronavirus vaccine
  • human trials for a vaccine, developed by the University of Oxford, would begin on Thursday
Sounds promising? He may be overpromising as his later comments were a little more restrained:
  • told the briefing that “the best way to defeat coronavirus” was through a vaccine
  • The process was “trial and error”, he said, but the UK was at the “front of the global effort” and had invested more money than any other country.
UK Health Secretary Matt Hancock spoke in a briefing earlier:

Broader indices fall over 3%. Dow down -2.67%

  
Analysis, US Market
#  #  #  #  #  #  #

All S&P sectors close lower.

The broader stock indices fell over 3% with the Nasdaq leading the way to the downside. The Dow 30 index fell -2.67%
The final numbers are showing:
  • The S&P index fell -86.60 points or -3.07% at2736.60
  • The Nasdaq index fell -297/49 points or -3.48% at 8263.23
  • The Dow 30 stock index fel -631 points or -2.67% at 23018.88.
Netflix shares are higher after the close after subscriber numbers surged 15.8M vs est of 8.47M
The 1Q revenues came in at $5.77B vs $5.76B estimate.  EPS came in at $1.57. They see 2Q rising to $1.81.
Go to top