Global High Yield OAS has been underperforming Global Equities for the third week
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Nikkei 225 climbs 2.15% as Asian stocks post rebound
The Nikkei closes higher at 21,428.39
Risk sentiment is generally upbeat to start the day with Asian equities faring better after losses sustained yesterday. That said, Chinese stocks took the shine off gains seen in the region as global growth worries continue to weigh on sentiment there. The Shanghai Composite is trading down by 1.3% currently but that remains a rather isolated event in trading today.
US equity futures are also on the up, trading higher by 0.3% while Treasury yields have recovered from a significant drop yesterday. 10-year yields fell below 2.40% for the first time since December 2017 but is now back up to 2.43% ahead of European trading.
Looking ahead, risk sentiment should reflect a slightly more positive mood at the start of the European morning but cautious tones are likely to prevail throughout. Currencies aren’t likely to pick up too much from early trades so let’s see if there will be a focused theme to settle on ahead of US trading later.
Japan’s FSA urging financial markets to get ready for the 10-day holiday coming up
Japan’s Financial Services Agency is warning of possible increased volatility in financial markets.
- The holidays run from April 27 to May 6
They’ve also warned on what happens when markets reopen ,,,,
- trading volume and price levels may be more volatile post-holiday
The agency said they will be monitoring closely for any market manipulation before the holidays begin when liquidity is expected to be thin.
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Yeah … everyone ready for a flash crash or two??? the super-thin liquidity period each morning when its only Australia and New Zealand markets trading will be extended a good few hours each one of those 10 days.
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ICYMI, the holidays will close Japanese financial markets for a week, the break runs together holidays for the abdication of Emperor Akihito and the annual Golden Week break.
10 days off!
No relief for EM equities as growth worries offset Fed boost
Those hoping for a respite in the sell-off in emerging market stocks were left disappointed on Monday.
The MSCI Emerging Market Index — a benchmark for developing country equities — fell for a second straight session, dropping 1.2 per cent to 1,046.49 as concerns over sputtering global economic growth continued to unsettle investors.
Monday’s decline — which adds to a 0.9 per cent fall on Friday — threatens to drag the gauge back below its 50-day moving average, a key short-term momentum level often watched by traders. The last time the index fell below its 50-DMA, which sat at around 1,040 on Monday, was in early January.
The flight from risk — which also drove a sharp rally in sovereign bonds — took hold on Friday after a run of surprisingly weak eurozone economic data and the inversion of a closely watched part of the Treasury yield curve triggered fears of a deepening slowdown.
The sell-off reached Asia in full force on Monday, with mainland China’s CSI 300 tumbling 2.4 per cent and Hong Kong’s Hang Seng sliding 2.2 per cent.
The two-day decline effectively wiped out the boost the Federal Reserve gave to the MSCI EM index last week when — in a more dovish than expected policy shift — it ruled out further rate hikes this year and announced plans to halt its balance sheet shrinkage by September.
“The sell-off validates our scepticism that a dovish Fed will be sufficient for capital inflows into risky assets witnessed over the past few months to prove sustainable,” said Rabobank in a note to clients on Monday.
“We believe this is especially so considering the outlook for the global economy is clouded by uncertainties caused by trade tensions, Brexit and prevailing vulnerabilities in various emerging markets.”
Adding to the macroeconomic headwinds are country specific issues — including fresh economic turmoil in Turkey and political developments in Brazil that threaten to derail the new president’s reform agenda.
EM currencies were steadier on Monday however amid a broader dollar retreat. The JPMorgan Emerging Market Currency Index, having tumbled 1.7 per cent for its biggest one-day decline since last August on Friday, was 0.7 per cent higher.
Samsung warns that its Q1 results will be under market expectations
South Korean industrial behemoth Samsung
- Q1 results lower than market expects
- display prices fell further than expected
- memory chip prices too fell further than expected
OK, let me fix this for ya
ps. All sorts of economic indicators have been missing expectations. the slowdown is no longer news.
Those French rascals
Confirmed: tea is the default solution for all British problems.
Translation: Fed officials debate plan to un-invert the yield curve.
US Markets :Slow start to the week. Little change in the major indices after an up and down day
S&P and Nasdaq down. Dow has a modest gain.
The US stock market, after the rout on Friday, is ending the day with modest losses/gains.
The final numbers are showing:
- S&P index, -2.35 points or -0.08% at 2798.36. The high reached 2809.79. The low reached 2785.02
- Nasdaq fell -5.124 points or -0.07% at 7637.54. The high reached 7662.379. The low reached 7579.29
- Dow rose 14.51 points or 0.06% at 25516.83. The high reached 25603.27. The low extended to 25372.26.
Apple was in the news by announcing a new Apple TV+, a new News+ servive, a new Apple credit card and Apple Arcade. The price of Apple was lower on the day 1.21% on the day. It has been running higher of late reaching a high of $197.67 on Friday (highest since November 12). The price was above the 200 day MA at $190.63. Today, the price is closing back below that MA at $188.58.