Archives of “June 17, 2020” day

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Eurozone April construction output -14.6% vs -14.1% m/m prior

  
  Analysis

Latest data released by Eurostat – 17 June 2020

  • Prior -14.1%; revised to -15.7%
  • Construction output -28.4% y/y
  • Prior -15.4%; revised to -17.5%
Construction activity in April slumped even more by the already poor conditions in March amid the peak of lockdown measures and the fallout from the virus outbreak in the region. That saw an unprecedented drop in annual output by nearly 30%, which should signify – much like other data points – the bottom in economic activity seen during April.

Germany reportedly said to ban large events until end-October at least

  
  Analysis

German news outlet, n-tv, reports

Despite the easing of border restrictions and the restart of international travel in Germany, large public events and gatherings are not going to return any time soon.

This will also surely be the case for almost all countries as the likes of large sporting events, concerts, and festivals are pretty much a hotbed for the coronavirus to spread.

Of note, that also means that there will be no Oktoberfest festivities this year. D:

Huawei reportedly delays production of flagship smartphone amid US crackdown

  
  Analysis
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Nikkei reports on the matter

Huawei

Huawei is said to have told suppliers to delay production for its newest flagship smartphone as the company weighs potential supply chain disruptions from an escalating US crackdown, according to sources familiar with the situation.

Adding that Huawei has also also halted production for some components of its Mate series of phones and trimmed orders for parts in the coming quarters.
The full report can be found here.
Not so good news for Huawei and tech in general but if anything, you can take this as a sign that China wouldn’t be too happy about recent US actions and will only add to tensions between the two if they are to try and resolve other issues moving forward.

Nikkei 225 closes lower by 0.56% at 22,455.76

  
Analysis, Global Indices

Asian stocks keep lower but not as bad as the early stages

Nikkei 17-06
The Nikkei closes lower but off the lows for the day as some jitters surrounding a second wave of infections in Beijing and geopolitical concerns weighed on risk a little.
The Hang Seng is near flat levels with the Shanghai Composite down 0.2% but both are also off their respective lows and have trimmed earlier losses for the most part.
Elsewhere, US futures are mildly softer still after observing some jitters in trading yesterday though the cash market managed to stay resilient to close higher. But there’s the sense that some of the early enthusiasm has been dashed somewhat.
Major currencies are mostly keeping in tight ranges still, with the dollar mixed across the board and the likes of the aussie and pound mildly weaker to start the session.

Japan trade balance for May: Y -833.4bn (expected Y -1030bn)

  
Analysis, Economy

Japan trade balance for May

  • expected Y -1030bn, prior Y -931.9bn

Trade balance adjusted -601bn yen

  • expected Y -657.5bn, prior Y -996.3bn

Exports -28.3% y/y for a miss

  • expected -26.1% y/y, prior -21.9%

Imports -26.2% y/y for a miss

  • expected -20.4% y/y, prior -7.1%
Further exports details are ugly, export to
  • the US are down 50.6% y/y
  • the EU down 33.8%
  • China -1.9%
  • Asia -12.0%

Reuters monthly Japan Tankan shows further souring in manufacturers sentiment

  
Analysis, Economy

The monthly Reuters Tankan is more timely than the quarterly report of the same name from the BOJ

  • Manufacturers Index for June comes in at -46 (down further from -44 in May)
  • Non Manufacturers Index -32 (-36)

Outlook

  • Manufacturers September Index seen at -35
  • Non-manufactures – 29
The sentiment index at manufacturers remains at its lowest since June 2009
Yen is doing pretty much nothing.
—
Poll of 499 large- and mid-sized non-financial companies
  • 240 firms responded on condition of anonymity

(Old news) IAEA has confirmed Iran denied access to nuclear inspectors

  
Analysis, Politics

A few headlines about the place along the lines that Iran has denied IAEA inspectors access to past nuclear sites

This is oldish news, from at least 24 hours ago, but getting a rerun now ICYMI I guess.
  •  Iran has repeatedly blocked investigators from visiting some of its nuclear sites, the chief of the International Atomic Energy Agency (IAEA) said on Monday. 
The latest reruns have been prompted by US Sec of State Pompeo saying (via tweet) that this obstructions is deeply concerning
  • & unacceptable
  • international community must demand Iran cooperate fully and immediately

Dow ends 526 points higher, extending win streak to three days

  
Analysis, US Market
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U.S. stocks closed higher Tuesday, but off the session’s best levels, after Federal Reserve Chairman Jerome Powell suggested more fiscal stimulus may be needed as the American economy may only make a slow recovery from the COVID-19 pandemic.

Rising coronavirus cases in several U.S. states are also are concern for investors, even though retail sales and industrial production data show the economy is slowly recovering, and progress on the development of potential therapeutic drugs has been reported.

How did benchmarks fare?

The Dow Jones Industrial Average DJIA, +2.04% rose 526.82 points, or 2%, to end at 26,289.98. The S&P 500 index SPX, +1.89% added 58.15 points to close at 3,124.74, a gain of 1.9%. The Nasdaq Composite Index COMP, +1.74% advanced 169.84 points, or 1.8%, to end at 9,895.84.

All three benchmarks extended their win streak to three straight sessions, but finished below their best levels of the day.

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