Archives of “May 21, 2020” day

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Japan preliminary PMIs (May): Manufacturing 38.4 (prior 41.9) & Services 25.3 (prior 21.5)

  
Analysis, Economy
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Jibun Bank / Markit preliminary PMIs for May

Manufacturing 38.4
  • prior 41.9
Services 25.3
  • prior 21.5
Composite 27.4
  • prior 25.8
Joe Hayes, Economist at IHS Markit:
  • “Latest PMI data provide yet another shocking insight into the devastating impact of the COVID-19 outbreak. While the rate of decline in services activity has eased very slightly, plummeting demand for goods is finally catching up with the manufacturing sector, which posted an accelerated decline in production during May. 
  • “Taking the April and May PMI surveys together, we see that both are indicative of GDP falling at an annual rate in excess of 10%. It is clear that the economy is going to contract for a third successive quarter, with the hit to Q2 likely to be potentially as large as 20% on the previous year. 
  • “Nevertheless, the dynamics in the economy are clearly evolving. As Japan eases the state of emergency measures, the services economy can begin its gradual recovery. However, the damage to the manufacturing sector could continue to worsen as global trade conditions deteriorate and the global economic recovery is slow.” 

China’s Wuhan has officially banned the eating of wild animals

  
  Analysis
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Wuhan was the epicentre of the coronavirus pandemic in China. Its a big city, with a population of around 11m people.

City authorities there have officially banned the eating of all wild animals,
  • Wuhan will become a “wildlife sanctuary”
  • virtually all hunting of wild animals to be banned (exception for “scientific research, population regulation, monitoring of epidemic diseases and other special circumstances”).
  • also introduced controls on the breeding of all wild animals
  • prohibiting any to be reared for food
The coronavirus spread from bats to people in wet markets in the city.
Wuhan was the epicentre of the coronavirus pandemic in China. Its a big city, with a population of around 11m people. 

Venezuela legal action against the Bank of England to hand over $1.13bn of gold

  
  Analysis
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The Central Bank of Venezuela has stepped up its claim against the BoE for Venezuela’s gold reserves.

  • Venezuela requested the Bank of England to sell part of its gold reserves there and send the proceeds to the United Nations to help with the country’s response to the cov1 COVID-19 outbreak
That was in April. This goes back further, though, the Bank of England has delayed the transfer of 31 tonnes of Venezuelan gold stored there to Maduro’s government since 2018. The UK does not acknowledge Maduro as Venezuela’s legitimate leader.
The BoE stores gold for many developing countries.
Via Guardian (not fresh news but ICYMI … keep an eye out if the gold does hit the market I guess)
Central Bank of Venezuela BoE gold reserves.

S&P and NASDAQ erase yesterday’s losses

  
Analysis, US Market
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The last 4 of 5 days have been to the upside for the major indices

The major indices are closing with solid gains on the day.  The NASDAQ index closed at the highest level since February 21. Facebook and Amazon closed at record high levels.   The S&P index is closing higher but after trading above its 100 day moving average at 2975.37, the pair has rotated lower and will close below its 100 day moving average at 2971.61.  So that is a bit of a disappointment

The final numbers are showing:
  • The S&P rose 48.67 points or 1.67% to 2971.61. The high reached 2980.29. The low extended to 2953.63.
  • The NASDAQ index rose by 190.67 points or 2.08% to 9375.77. The high price extended to 9392.816. The low price fell 29304.199
  • The Dow industrial average rose by 369.04 points or 1.52% to 24575.90. The high price extended to 24649.48. The low fell to 24455.94
some big gainers today included:
  • Twitter, +7.83%
  • Alcoa, +7.88%
  • Deutsche Bank, +6.23%
  • Facebook, +6.04%
  • Wynn Resorts +5.88%
  • Slack, plus a 5.7%
  • Southwest air, +5.27%
  • United Airlines, +5.24%
  • Disney, +4.86%
  • Intel, +4.69%
  • Morgan Stanley, +4.4%
losers today included:
  • Lockheed Martin, -2.46%
  • Northrop Grumman, -1.94%
  • Chewy, -1.62%
  • J&J, -0.9%
  • Merck and Company, -0.86%
  • United health, -0.42%
  • Verizon, -0.22%
  • Pfizer, -0.13%
  • Home Depot, -0.03%
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