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Coronavirus – Chief financial officer of Jefferies Group dies

  
  Analysis
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Jefferies LLC is a US multinational independent investment bank and financial services company.

  • The firm is headquartered in New York City.
A company statement says its chief financial officer Peregrine “Peg” Broadbent has died from “coronavirus complications”
The virus is cutting a swathe through New York, deaths in the city are nearing (if not above as I post) 1000.
Jefferies LLC is a US multinational independent investment bank and financial services company.

An Update :US Dollar Index ,USDJPY ,AUDUSD ,USDINR ,EURO ,YEN ,GOLD ,SILVER ,PALLADIUM ,WTI ,BRENT ,SPX 500 -Anirudh Sethi

  
  Analysis
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The dollar rallied strongly from March 9 through March 20 or the start of last week on March 23.  It has subsequently sold off and done so in dramatic fashion.  It is not clear the trigger of the stunning reversal.  Some observers attribute it to the Fed’s currency swap lines, which were offered daily (seven-day operations) to a handful of large central banks.
Others link it to the better risk appetites reflected in meaningful bounces in equity markets, but nothing as striking as the 17% rally in the Nikkei.  Even with a 915-point tumble in the Dow and a 3.3% drop in the S&P 500 before the weekend, both ended with double-digit gains on the week.  Gold’s 8.6% rally will not sit well with those who view it as a safe haven.  The 30- and 60-day rolling correlations on the percent change of gold and the S&P 500 are positive for the first time since the middle of last year and October 2018, respectively.
The technical indicators that we monitor, the MACD and Slow Stochastic, have turned down for the dollar against all the major currencies.  The poor technical condition suggests the dollar’s weakness is more than a function of month- and quarter- and fiscal year-end flows, but was technically over-extended.  We will use Fibonacci retracement and moving averages to identify potential price targets and relative strength.
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Major indices close lower after late day rally fizzles out

  
Analysis, Global Indices, US Market
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Another big move in the last hour of trading

The major indices are closing lower on the day after the late day rally fizzled out.
Starting the last hour of trading, the major indices were trading at:
  • S&P index 2584.95, down -45.12 points or -1.72%
  • NASDAQ index 7648.96, down -148.57 points or -1.91%
  • Dow 22046.95, down -505.18 points or -2.24%
The closing levels are lower at:
  • S&P index fell -88.62 points or -3.37% to 2541.45
  • NASDAQ index fell -295.15 points or -3.79% to 7502.37
  • Dow fell -915.39 points or -4.06% to 21636.78
Over the last hour of trading, the major indices each traded to new day highs, but quickly sold off and are closing near the session lows (with the NASDAQ just off the day’s lows). In the last hour of trading, the:
  • S&P index went from a high of 2615.91 to a low of 2534.99 or a range of 80.92 points
  • Nasdaq index went from a high of 7716.24 to a low of 7497.02 or a range of 219.2 points
  • Dow went from a high of 22327 to a low of 21602 or a range of 725 points
Another big move in the last hour of tradingAlthough lower for the day for all major indices closed with gains.
Leading the way was the Japan’s Nikkei with a gain of +17.14%. In the US, the biggest gainer was the Dow up by 12.84%. It was helped by a move back higher in Boeing.   Boeing shares went from $97 on Monday to around $180 at the highs. It is closing today around $162.  The gain for the week was at 70.48%
The S&P index rose by 10.26%.  The NASDAQ gained 9.05%.
Other big gainers for the week were:
  • Delta Air Lines +38.36%
  • United Airlines +33.8%
  • Slack +28.3%
  • Home Depot up 25.05%
  • intuitive surgical, +24.41%
  • Nike up 23.51%
  • Nvidia, +22.75%
  • Micron, +20.41%
  • Tesla, +20.36%
  • Broadcom, +20.2%
  • American Express up 19.56%
  • United Technologies up 17.69%
  • United health up 17.04%
  In Europe the biggest gainer was the German DAX which rose 7.88%.

Here are the US companies who are hiring

  
  Analysis
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This via Bloomberg, some hiring to offset the job losses elsewhere

Instacart 300,000 Walmart 150,000 Amazon 100,000 Dollar General 50,000 CVS 50,000 Albertsons 30,000 Pizza Hut 30,000 Dollar Tree 25,000 Papa John’s 20,000 7-Eleven 20,000 Dominos 10,000 Kroger 10,000 Walgreens 9,500
Pepsi 6,000
Service, delivery workers. There will be similar developments on other economies (scaled to the size of those economies of course).
These will not entirely offset the job losses ahead. Initial claims this week are seeing estimates, some of 3 million (BoA)

US stocks close higher but well off highs in volatile trading

  
Analysis, US Market
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Nasdaq was down -1.88% at the lows, and up 5.03% at the high today

The US stock indices are closing higher on the day but off the highs for the day. I guess you can say there well off the lows for the day too.  The NASDAQ index was down -1.8% at the lows, and up 5.03% the highs. It closed up 2.3%. The volatility is red hot.
The final numbers are showing:
  • The S&P index rose 11.29 points or 0.47% to 2409.39. The low price was at 2319.78, down -3.27% at the time. The high was at 2466.97, up 2.87% at the peak.
  • The Nasdaq index rose  160.73 points or 2.3% to 7150.57.
  • The Dow rose 188.27 points or 0.95% to 20087.19. The low price was at 19177.13, or down -3.63%. The high reached 20442.63, or up 2.73%.
A hugely volatile day for the US stocks.
The US stocks had a hugely volatile day

Italy bans short-selling of stocks for 3 months

  
Analysis, Global Indices
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Market regulator Commissione Nazionale per le Società e la Borsa (CONSOB)

  • The Italian Companies and Exchange Commission
dropping the news. 90 day short sale ban.
Not good news for market functioning but it pales in comparison to the deaths and illnesses being caused by the coronavirus. And the real economy impacts.

European bond yields continue to rise over the past week

  
  Analysis
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10-year German bond yields rise to its highest levels in a month

GDBR10Y
Meanwhile, 10-year French and Spanish bond yields have both climbed to their highest levels since May 2019 to start the day. This comes as we also see Treasury yields rebound higher, with 10-year yields up by 10 bps to 0.82% currently.
It is tough to try and make sense with what is happening in the market because things change so quickly but I would argue that the selloff in European bonds isn’t exactly a good sign for the euro currency in general.
I would say the rise in Treasury yields represents a bit of a disconnect because the move higher there reflects more closely the slightly better risk mood today – which is also helping USD/JPY to stay underpinned, alongside gains in the dollar today that is.

The Philippines has suspended FX and bond trading

  
  Analysis
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Trading, clearing and settlement of foreign exchange and fixed interest suspended as of today

  • until further notice
There are plenty of calls for this to happen in major markets also. Be aware if you are in a position and the market is shuttered you will be unable to exit until it reopens. There may, of course, be work around hedges to be used.

Federal Reserve acts on a Sunday evening to slash rates to near zero

  
  Analysis
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Federal Open Market Committee

  • cut interest rates for the second time in less than two weeks
  • emergency move
  • “The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range
  • The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals”
Headlines via Reuters:
  • fed cuts interest rates to near zero in response to coronavirus crisis, risks to economic outlook
  • says expects target interest rate will remain in range of 0 and 0.25% until economy has “weathered recent events” and is on track to meet inflation and employment goals
  • says crisis has “harmed communities and disrupted economic activity” in u.s. and other countries, will weigh on activity in the near term
  • says will use “full range of tools” to support economy, will expand holdings of treasury securities by $500 bln and mortgage backed securities by $200 bln in coming months
  • vote on policy action was 9 to 1, with Cleveland fed president Loretta Mester preferring a smaller interest rate cut
  • Fed announces coordinated action with bank of Canada, bank of England, bank of Japan, European central bank and Wwiss national bank
  • Fed says six global central banks have agreed to lower pricing on u.s. dollar liquidity swap arrangements by 25 bps
  • says changes to central bank swap lines will take effect week of march 16
  • Fed and other global central banks will begin offering u.s. dollar liquidity in each jurisdiction with 84-day maturity
  • Fed says it will lower the primary credit rate by 150 basis points to 0.25 percent, effective march 16
  • Fed says it supports firms that choose to use their capital and liquidity buffers to lend and undertake other supportive actions in a safe and sound manner
  • says that depository institutions may borrow from the discount window for periods as long as 90 days, prepayable and renewable by the borrower on a daily basis
  • says reducing reserve requirement ratios to zero percent effective on march 26
  • says encourages depository institutions to utilize intraday credit extended by reserve banks, on both a collateralized and uncollateralized basis

US stocks go out at the lows. The Dow tumbles 10%

  
Analysis, US Market
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NASDAQ and S&P index fall over 9.4%

The US stocks are going out at the lows and down sharply after the markets were not impressed with the President’s address to the nation and the headlines continue to point to slower growth.  The US sporting events are shutting down. The number of infected and deaths continued to grow in Europe.  A massive liquidity add by the Fed could not help.
The final numbers are showing:
  • S&P index -260.6 points or -9.51% at 2480.78
  • NASDAQ index -750.25 points or -9.43% at 7201.80
  • Dow industrial average -2352.33 points or -9.99% at 21200.85.
The changes in major stock marketsYear to date numbers are showing:
  • Dow, -25.71%
  • S&P, -23.22%
  • Nasdaq, -19.74%
  • Canada S&P/TSX index -26.69%
  • Euro Stoxx 50, -32.04%
  • UK FTSE 100 -30.56%
  • German DAX, -30.85%
  • France’s CAC, -32.35%
  • Japan’s new guy, -21.55%
  • Hong Kong’s Hang Seng -13.77%
  • Australia’s S&P/ASX 200, -20 64%
There is nothing good coming out the stock market.
Year to
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