Archives of “September 24, 2020” day

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European shares close lower

  
Analysis, Global Indices

Spain’s Ibex and Italy’s FTSE MIB give up gains,

The major European indices are closing the day lower across the board. Spain’s Ibex and Italy’s FTSE MIB gave up decent games and are closing lower. The provisional closes are showing
  • German DAX -0.3%.  The index traded up 0.33% at its high. The low extended to -1.03%.
  • France’s CAC -0.8%.  The high point reached +0.10%, while the low extended to -1.21%
  • UK’s FTSE 100 -1.3%.  The high point reached unchanged, while the low extended to -1.59%.
  • Spain’s Ibex -0.2% the high point reached +0.77%. The low extended to -1.38%
  • Italy’s FTSE MIB. -0.15%. The high point reached +0.91% while the low extended to -1.63%

SNB leaves policy rate unchanged at -0.75%

  
  Analysis

SNB announces its latest monetary policy decision – 24 September 2020

  • Prior -0.75%
  • Sight deposit interest rate unchanged at -0.75%
  • Swiss franc is highly valued
  • Ready to step up intervention in FX market as necessary
  • Expansionary policy is necessary to ensure appropriate monetary conditions
  • Inflation outlook is subject to unusually high uncertainty
  • Sees inflation this year at -0.6%, 2021 at +0.1%, 2022 at +0.2%
  • Full statement

As expected, more or less a non-event as the SNB reaffirms their pledge to intervene in the market and to limit any significant appreciation in the franc. Given their outlook on inflation, one can expect continued interventions until the recovery looks less fragile.

BOJ minutes – policy Board says yet again it’ll will ease further if needed

  
  Analysis

Bank of Japan July 2020 meeting minutes.

Headlines via Reuters:
  • Board members agreed must ease further without hesitation if needed, with eyes on the impact of the pandemic on the economy
  • one member said must examine whether current policy framework is sufficient, act promptly if action is needed
  • one member said close, appropriate coordination between fiscal and monetary policies is crucial

 

  • members agreed there was risk financial intermediation could stagnate if financial institutions’ profits remain under prolonged strain
  • members agreed there was chance financial system vulnerability might heighten
  • one member said the BOJ must look more deeply into how monetary policy could be shaped in ‘with-corona’ world
  • one member said must scrutinise how monetary policy affects business management from medium-term perspective

 

more to come

US Indices tumbled lower. NASDAQ down 3% on the day

  
Analysis, US Market

S&P index falls over 2%

The S&P index and NASDAQ index closed lower for the 5th time in 6 days. All 11 sectors of the S&P moved lower. Stocks closed near their session lows with the NASDAQ index tumbling over 3%. The S&P index is 9% away from its high. The NASDAQ index is now 12% from its all-time high. The major indices are on track for their 4th week in a row lower.
No good news in all those statistics.
A look at the final numbers show:
  • S&P index -78.65 points or -2.37% at 3236.92. The low for the day reach 3232.57
  • NASDAQ index fell 330.565 points or -3.02% to 10632.96. The low price reached 10612.91
  • Dow industrial average fell -525.05 points or -1.92% to 26763.13. The low price reached 26716.12

Big losers today included:

  • Albemarle, -15.61%
  • Tesla, -10.3%
  • US steel, -8.06%
  • Lyft, -4.73%
  • Chevron, -4.73%
  • Salesforce -4.73%
  • Amazon, -4.18%
  • Schlumberger a, -4.15%
  • Netflix, -4.14%
  • Apple, -4.09%
  • Nvidia, -4.05%
  • Intuit, -3.89%
  • Square, -3.89%
  • AMD, -3.84%
  • Boeing, -3.6%
Winners today included:
  • Nike, +8.77%
  • Western Digital, +6.72%
  • Twitter, +6.11%
  • Zoom, +1.62%
  • Chipotle, +1.2%
  • Chewy, +0.94%
  • First solar, +0.71%
  • Bristol-Myers Squibb, +0.39%
  • Micron, +0.32%
  • J&J, +0.12%
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