Archives of “April 2020” month

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European shares end the session with mixed results

  
Analysis, Global Indices

German DAX rises by 1.25%

The European major indices are ending the session with mixed results.  A look at the closing levels are showing:

  • German DAX, +1.25%
  • France’s CAC, +0.3%
  • UK’s FTSE 100, -0.87%
  • Spain’s Ibex, +0.54%
  • Italy’s FTSE MIB, -0.36%
In the European are ending mixed. The German and French benchmark 10 year yields moved mostly lower. Italian yields moved sharply higher.
German DAX rises by 1.25%_
In other markets as London/European traders look to exit:
  • S&P index is up 2.13%
  • NASDAQ index is up 2.96%
  • Dow industrial average is up 1.79%
US stocks are higher
In the US debt market, yields are lower:
  • 2 year 0.221%, -2.4 basis points
  • 5 year 0.406%, -4.3 basis points
  • 10 year 0.734%, -3.6 basis points
  • 30 year 1.383%, -2.3 basis points
Spot gold is taking us clues from the lower dollar and is trading up $18.40 or 1.07% at $1733.75
WTI crude oil futures continued the move to the downside. The price is down $-1.22 or -5.5% at $21.19.
In the forex market a snapshot of the major currencies are showing the GBP is the strongest. The NZD has taking over as the weakest of the majors although the USD and CAD are close behind.

New York governor Cuomo: Trump is wrong, doesn’t have ‘total authority’

  
  Analysis
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Comments by New York governor, Andrew Cuomo

  • Reopening must be phased, balanced
  • Says that testing is key
  • ‘We are not there yet’ on testing
  • If reopening is not done gradually, may have to start all over
In case you missed it, Trump had a combative press conference with journalists yesterday over reopening the economy in which he said that:

“When somebody is the president of the United States, the authority is total. It’s total. The governors know that. That being said, we’re going to work with the states.”

This of course is in relation to his plans to reopen the economy on 1 May as the White House recommendations on precautionary measures are to expire at the end of the month.

Some European exchanges still down on Deutsche Boerse ‘glitch’

  
  Analysis
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The situation still has not been resolved for over two hours now

Notably, the DAX is down but other cash markets such as those in Austria, Czech, Hungary and Slovenia are also down at the moment due to the technical difficulty.

According to Deutsche Boerse, there is a ‘glitch’ in its Xetra electronic trading platform but they said that they have engaged in recovery measures to make it available again.
Bloomberg is reporting that all affected equities can still be traded in Frankfurt floor trading though, so there’s that. But for now, all the screens I am seeing are frozen with last trade on the DAX being at 0725 GMT.

Nikkei 225 closes higher by 3.13% at 19,638.81

  
Analysis, Global Indices

The Nikkei closes at a one-month high amid the better risk mood

Nikkei 14-04

Japanese stocks rallied strongly today as Asian equities also gained on the back of better-than-expected China trade balance data for March, but also as US futures kept higher after a softer performance by Wall Street in overnight trading.
The Hang Seng is up by 0.8% while the Shanghai Composite is up by 1.3% currently.
In the currencies space, this is keeping the aussie and kiwi slightly more underpinned with AUD/USD keeping above 0.6400. Meanwhile, the dollar remains softer across the board still.

Italian autos, fashion companies may reopen next week – report

  
  Analysis
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La Stampa reports on the matter

I haven’t seen any official details on this just yet but just something to take note, as the pressure on the government continues to mount in recent days.

Italy announced an extension to lockdown measures to 3 May but businesses are getting nervous and anxious about the decision, hoping for better news as the virus trajectory begins to slow down over the past few days.
Although lockdown measures were extended, businesses such as timber companies, bookshops and stores selling children’s supplies are allowed to reopen starting from today.

Nikkei extends gains to over 3% on the day

  
Analysis, Global Indices

Japanese stocks surge higher ahead of the closing stages

Nikkei

It has been mostly one-way traffic for risk trades in Asia Pacific trading, as we see the Nikkei push higher towards the end of the session with gains of over 3% now.
The Hang Seng and Shanghai Composite are also up by 1% on the day with US futures at session highs at the moment, seeing gains of over 1.6%.
Better-than-expected Chinese trade balance data can be said to be among the reasons for the improved risk mood as investors are clinging on to whatever optimism they can ahead of earnings season in Wall Street that is set to begin today.
In turn, this is keeping the aussie and kiwi underpinned ahead of European trading. AUD/USD is up by about 0.7% to 0.6425 while NZD/USD is up by 0.5% to 0.6122.

North Korea reportedly fires numerous unidentified projectiles

  
  Analysis
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South Korea makes mention of the incident

The South Korean military says that North Korea has fired multiple short-range missiles into the sea, as being reported by Yonhap News at the moment as well.
The target location is believed to be between the Korean peninsula and Japan, with South Korea saying that they are monitoring the situation for more developments.
There doesn’t look to be too much in this just yet but as always with North Korea, keep an eye out. You never really know when things may just suddenly turn on its head.

Toyota says that to resume some France, Poland plant operations from end-April

  
  Analysis

Europe is gradually inching towards small production restarts

Some good news I guess as most countries and businesses are still taking baby steps to get the gears spinning once again. Although lockdown measures are still firmly in place in most parts of Europe, there are some recent concessions made in the likes of Italy and Spain.

For Italy, businesses such as timber companies, bookshops and stores selling children’s supplies are allowed to reopen starting from today.
Meanwhile, Spain is allowing those in the manufacturing, construction and some services sectors to return to work but must stick to strict safety guidelines.
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