Archives of “April 2020” month

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Japan PM Abe: The economy is in a situation I have not experienced before

  
Analysis, Economy

I think that is almost certainly the case for everyone in the world right now

Abe

  • The psychological situation is worse than the Great Depression
  • It is not true that cost of Olympics delay has been agreed
  • Important for IOC, organizers to cooperate on the extra costs
Even before the coronavirus pandemic, the Japanese economy had been struggling big time and all of the latest developments will just exacerbate those problems.
The BOJ is also starting to run out of creative juice to try and bolster economic confidence and there is a real fear of strong deflation risks the longer this keeps up.

US President Trump stock tips – says smart people investing in stock market right now

  
  Analysis
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Trump says the economy will be ‘spectacular’ in Q3 and Q4 2020

  • expects unbelievable growth next year
Trump also comments on North Korean dictator Kim Jong Un:
  • he wishes Kim well, hopes he is fine
More on Kim:
  •  “I do have a good idea but I can’t talk about it now, I just wish him well…I hope he’s fine, I do know how he’s doing relatively speaking, we will see–you’ll probably be hearing in the not too distant future”

Oil traders book US vessels to store gasoline, ship fuel overseas

  
Analysis, Crude

An overnight piece via Reuters ICYMI, probably not breaking news to anyone keeping track of energy markets.

  • Oil traders are hiring expensive U.S. vessels, normally only used for domestic shipments, to store gasoline or ship fuel overseas, five shipping sources said, in a sign of the energy industry’s desperation for places to park petroleum amid a 30% drop in worldwide demand.
  • Several shippers said they have started to book Jones Act (JA) vessels for foreign voyages or to store refined products. The century-old Jones Act requires that vessels traveling between domestic ports be owned and operated by U.S. crews, and they are generally more expensive than other vessels.
  • “It’s very unusual to use JA tankers for international trips,” one shipping source said.
Here is the link to the Reuters article if you’d like more
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On another oil related item – tomorrow we’ll get the weekly private oil inventory survey. This will likely report a further build up of stocks – but there be a slowing in the builds as some US states begin to reopen.
oil

NASDAQ index closes above its 100 day moving average for the 1st time since March 4

  
Analysis, US Market

The Dow rises for the 4th day in a row icleBody

The major indices are closing higher on the day. Some highlights included:

  • NASDAQ closing above its 100 day moving average for the 1st time since March 4
  • Dow industrial average closed above its 50 day moving average and rose for the 4th day in a row
  • All 11 sectors the S&P closed in the green
  • The S&P index also closed above its 50 day moving average

The final numbers are showing

  • the S&P index rose 41.74 points or 1.47% at 2878.48. The high price extended to 2887.72. The low bottomed at 2852.89
  • The NASDAQ index rose by 95.64 points or 1.11% at 8730.16. The high price extended to 8754.56. The low fell to 8797.37.
  • The Dow industrial average rose 358.51 points or 1.51% at 24133.78. The high price extended to 24207.65. The low fell to 23840.61.

European shares end the day with solid gains

  
Analysis, Global Indices
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German DAX, +3.13%. France’s CAC, +2.3%

the major European indices are ending the day with gains across the board led by the German Dax up 3.13%. The German DAX, France’s CAC, and Italy’s FTSE MIB are closing near highs for the day.
Below are the percentage ranges for major indices in both the US and Europe. The US stock indices are also trading at session highs with the session.
German DAX, +3.13%. France's CAC, +2.3%_In the European debt market, the the benchmark 10 year yields were mixed with Germany and UK yields up while France, Spain, Italy, and Portugal yields lower.
European yields are mixed

In the US debt market, yields are higher with a steeper yield curve. The 2 – 10 year spread is up to 42 basis points from 37.63 basis points on Friday.

US yields are higher
In other markets:
  • spot gold is trading down $18.13 or minus was 1.06% at $1711.32
  • WTI crude oil futures (June contract )are sharply lower with the price down $4.75 or -28% at $12.19
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