Singapore Stock Market News

Market Commentary: Record highs on trade, vaccine developments

noreply@blogger.com (StockFanatic) — Wed, 26 Aug 2020 05:02:00 +0000

· The S&P 500 and the Nasdaq hit all-time closing highs on Tuesday, from positive developments in US-China trade and fresh progress in the medical battle against the coronavirus pandemic. The Dow, which has yet to reclaim its February high, ended the session lower.

· Trade officials in Washington and Beijing reaffirmed their commitment to Phase One of a bilateral trade deal, but goodwill between the countries soured as China called a US spy plane’s flight through a no-fly zone a provocation.

· The Dow Jones Industrial Average fell 60.02 points, or 0.21%, to 28,248.44, the S&P 500 gained 12.34 points, or 0.36%, to 3,443.62 and the Nasdaq Composite 0.76% to 11,466.47.

· Salesforce soared more than 12% in late trading after it topped second-quarter revenue and profit estimates and raised its annual sales forecast, thanks to strong software demand.

· But there is a dichotomy between what’s happening in the stock market and the economy, as the Conference Board’s Consumer Confidence index plunged to a 6-year low this month, while a report from the Commerce Department showed sales of new homes in July surged to a more than 13½-year high.

· So, while some US households are able to buy new homes, millions of others are unable to afford life’s necessities and pay the rent, which pours cold water on the idea that the economic recovery is sustainable. At least 28 million people are on unemployment benefits. Economists say unemployment has disproportionately affected low-wage workers, who are typically renters.

· British drugmaker AstraZeneca has begun trials of its antibody-based drug for the treatment and prevention of Covid-19, the latest development in a global race to combat the pandemic. In Florida, cases continued to moderate, but the situation could be upended if the approaching storm forces evacuations. Translate Bio and Sanofi said their experimental vaccine showed promising results in animal studies.

• Access to over 8890 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: Data help US market end week on a high note

noreply@blogger.com (StockFanatic) — Mon, 24 Aug 2020 08:01:00 +0000

· Wall Street wrapped up a record setting week with solid gains on the back of strong US economic data.

· The Dow climbed 190.6 points, or 0.7%, to close at 27,930.33. The S&P 500 climbed 0.3% to end the day at 3,397.16, another closing record. Apple was the benchmark's biggest gainer, surging 5.2% ahead of its 4-for-1 stock split on Monday. The Nasdaq Composite advanced 0.4% to 11,311.80, also a record close.

· Data from IHS Markit showed US manufacturing activity hit its highest level in 19 months in August, while services were at their highest level in 17 months. Meanwhile, existing home sales for July saw a record month-over-month spike of 24.7%. The average selling price for homes also hit an all-time high, jumping to US$304,100.

· Governments around the world continue to tread a fine line between easing lockdowns to revive growth and controlling any resurgence of virus cases. The pandemic passed two global milestones: 800,000 deaths and 23 million cases. US infections showed signs of stabilisation, but concern is growing in Europe and parts of Asia.

· More clarity will no doubt be sought via this week’s Jackson Hole Symposium about the Fed’s long-awaited monetary policy framework review. The Fed’s annual Economic Policy Symposium — typically held in Jackson Hole, Wyoming — is set for 27-28 Aug via livestream.

· Federal Reserve Chair Jerome Powell’s takes the virtual stage on Thursday to speak; Investors will be looking for signs that the Fed is exploring additional ways to support the global economy should a stimulus package fail in Congress.

• Access to over 8890 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: And they are back, with S&P within inches of record high close

noreply@blogger.com (StockFanatic) — Thu, 13 Aug 2020 09:48:00 +0000

· A broad rally led by tech-related stocks saw the S&P 500 finish just short of its February record closing high; the index briefly surpassed its record closing level of 3,386.15 from 19 Feb, reaching as high as 3,387.89 during intraday trading.

· The Nasdaq and Dow also rose sharply. The Dow Jones Industrial Average rose 1.0% to 27,976.8, the S&P 500 was up 1.4% to 3,380.4 while Nasdaq Composite rose 2.1%, to 11,012.2.

· Tesla Inc shares jumped 13.1% after it announced a five-for-one stock split in an attempt to make its shares more accessible to employees and investors.

· The prospect of declining coronavirus cases at a time when the federal government and central banks are still supporting the economy could have lifted sentiment. Federal Reserve speakers advocated the need to protect a nascent recovery. Dallas head Robert Kaplan called on officials to push harder for adherence to protective behaviours and said extending unemployment benefits is “critical” to growth.

· Data showed US consumer prices increased more-than-expected in July, but high unemployment is likely to keep inflation under control, allowing the Federal Reserve to continue pumping money into the economy.

· Sentiment may have lifted too after President Donald Trump said the US government will purchase 100 million doses of Moderna’s experimental coronavirus vaccine, which is currently in late-stage human trials.

· The UK economy officially entered a recession, after gross domestic product dropped 20.4% in the second quarter of 2020, compared to the previous three months.

• Access to over 8890 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: Winning streak snaps

noreply@blogger.com (StockFanatic) — Wed, 12 Aug 2020 09:55:00 +0000

· The S&P 500 and the Dow snapped a seven-day streak of gains and fell on growing uncertainty about a stalemate in Washington over a fiscal stimulus pact.

· US Senate Republican leader Mitch McConnell said that White House negotiators had not spoken on Tuesday with Democratic leaders in the US Congress on coronavirus aid legislation after talks broke down last week.

· Investors have been hoping Republicans and Democrats will resolve their differences and agree on another relief programme to support about 30 million unemployed Americans, as the battle with the virus outbreak was far from over, with US cases surpassing 5 million last week.

· The Nasdaq fell more than 1%, extending recent losses and registering its biggest daily percentage decline since 23 July, with investors continuing to shed technology-related market heavyweights in favour of value names.

· The Dow Jones Industrial Average fell 104.53 points or 0.38% to 27,686.91, the S&P 500 lost 26.78 points, or 0.80% to 3,333.69 and the Nasdaq Composite dropped 1.69% to 10,782.82.

· A meeting between top US and Chinese trade officials on Saturday to review the first six months of the Phase 1 trade deal is still on the cards. On the virus front, California reported a sharp jump in cases. New Zealand’s main stock gauge lost more than 2% after evidence of new coronavirus cases in the country forced fresh restrictions.

• Access to over 8890 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: US negotiations over stimulus continue amid diplomatic tensions

noreply@blogger.com (StockFanatic) — Tue, 11 Aug 2020 04:39:00 +0000

· Investors are assessing simmering tensions between the US and China, as well as progress in talks between Democrats and Republicans on negotiating a broader additional virus relief package. Value stocks, which tend to outperform growth coming out of a recession, have seen a lift in recent days.

· The Dow Jones Industrial Average rose 1.3% to 27,791.44. The S&P 500 gained 0.27% to 3,360.47 and the Nasdaq Composite dropped 0.39%, to 10,968.36.

· As energy and industrial sectors led gains, chipmakers led declines amid renewed tensions with China. Tech has been one of the few resilient sectors and analysts believe a pullback is not unusual. Oil gained the most in almost three weeks after Saudi Aramco said demand will continue to improve.

· The S&P 500 is within earshot of an all-time high. Whether it breaks through that psychologically important barrier depends on how the market is able to take looming trade tensions and Washington’s antics in stride.

· US President Donald Trump had signed executive orders on Saturday that partly restored enhanced unemployment benefits after talks between the White House and top Democrats in Congress about fresh stimulus broke down last week but it remains to be seen if his actions have any benefits. Steven Mnuchin said that Democrats' insistence on almost US$1 trillion for aid to state and local governments is "absurd," but maintained a deal is still possible.

· Investors are also assessing simmering tensions between the US and China, as China said it will sanction 11 Americans in retaliation for similar measures imposed by the US on Friday, but the list doesn’t include any members of the Trump administration.

· China’s industrial activity picked up in July, boosting hopes for an economic recovery and driving early gains in European stocks. In Europe, stocks advanced led by financial companies.

• Access to over 8714 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: Stimulus hopes keeps markets buoyant

noreply@blogger.com (StockFanatic) — Fri, 07 Aug 2020 09:06:00 +0000

· Markets have been incredibly resilient; there is a big fear of missing out and it is the old stalwarts, the technology leaders that keep driving markets higher. The Nasdaq ended the session above 11,000 for the first time

· Economic data released on Thursday painted a mixed picture as US Labour Department numbers showed a first fall in jobless claims in three weeks, although a separate report showed a 54% surge in job cuts announced by employers in July. The data comes ahead of the government payrolls report today.

· With last month's surge in infections, Friday's jobs report will probably show a slowdown in the recovery — or worse. Non-farm payrolls are forecast to show a 1.5 million increase in July, less than a third of June's 4.8 million, with the jobless rate ticking down to 10.5% from 11.1%.

· The Dow Jones Industrial Average rose 185.46 points or 0.68%, to 27,386.98, the S&P 500 gained 21.39 points or 0.64%, to 3,349.16 and the Nasdaq Composite rose 1%, to 11,108.07.

· Results earnings season is in its final stretch, and with better-than-feared second-quarter earnings, investors are looking to the next fiscal aid package to further cope with fallout from the Covid-19 pandemic. But Senate Majority Leader Mitch McConnell said Republicans and Democrats remained far apart over what to include in another wave of relief.

· Donald Trump has vowed to take unilateral action if the White House and Democrats are unable to reach a stimulus deal by Friday. The president said he would issue executive orders either today or Saturday on extending unemployment benefits and imposing a payroll tax holiday.

· China's July trade numbers may paint a mixed picture of the world's economic rebound. Consensus is for exports to drop 0.7% on year — compared with a 0.5% gain in June — and for imports to advance 2.5%, with an assist from higher commodity prices. The surplus may narrow to $42.55 billion.

• Access to over 8714 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: Markets remain robust despite grim jobs data

noreply@blogger.com (StockFanatic) — Thu, 06 Aug 2020 09:09:00 +0000

· Investors have been pushing stocks higher in recent days as pressure grows on Republicans and Democrats to resolve differences over a new US virus relief package, especially with jobs data painting a grim picture. Gains in precious metals suggest investors are nervous about the outlook for the global economy and seeking a hedge.

· US economic data was mixed, with payroll gains slowing sharply in July, suggesting the pickup in coronavirus cases is putting the brakes on the job market. Meanwhile, service industries grew in July at the fastest pace since February 2019.

· Many economists expect last week’s expiration of US$600 in enhanced weekly unemployment benefits to lead to a sharp drop-off in household spending and a setback for the US economy’s near-term recovery, even if the lapse turns out to be temporary.

· Cyclical sectors including industrials, materials and financials contributed the most to the market’s gains and allowed the Dow industrials (up 1.39%) and S&P 500 (up 0.64%) to outpace the Nasdaq Composite (up 0.52%).

· Still, the Nasdaq did manage to clinch yet another record close for the year and at one point traded above 11,000 for the first time. The major market indices are having a robust week, up 2.9%, 1.7% and 2.3%, respectively, since Friday’s close.

· Geopolitics remain in play, as Mike Pompeo signalled the American campaign against China's tech firms would escalate beyond TikTok as he promoted a "clean network" initiative. The secretary of state said the US wants to see untrusted Chinese apps removed from app stores, called for companies to limit their apps from phones made by Huawei and for ending the use of Chinese cloud providers.

• Access to over 8714 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: US markets higher on stimulus hopes

noreply@blogger.com (StockFanatic) — Wed, 05 Aug 2020 02:51:00 +0000

· Investors are closely monitoring news for a new virus relief package, as negotiators seek to shrink the gap that remains between Republicans and Democrats. A rally in tech-related stocks and trillions of dollars in monetary and fiscal stimulus have lifted the S&P 500 to within about 3% of February’s record high.

· The Dow Jones Industrial Average rose 0.62% to end at 26,828.47 points, while the S&P 500 gained 0.36% to 3,306.51. The Nasdaq Composite climbed 0.35% to 10,941.17. Oil dipped after climbing to its highest in nearly two weeks as an explosion in Beirut stoked fears over instability in the region.

· Senior US and Chinese officials are planning to assess the nations’ trade agreement around the middle of the month against a backdrop of rising tensions between the countries.

· On the virus front, California reported the fewest new coronavirus cases since June, while Florida and Arizona also saw their infections slow, signalling an easing in some of the US states hardest-hit by the pandemic in recent weeks. In Europe, Germany, Poland and the Netherlands recorded increases in new cases.

· A slew of economic news out of the US could move stocks. Private payrolls data from ADP will be watched if companies continued to bring back workers from their pandemic furlough in July. Economists polled by Dow Jones are expecting 1 million private workers were added in July, down from the 2.369 million added in June.

· The final read on July Services PMI and the ISM nonmanufacturing survey is also anticipated.

• Access to over 8714 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: Nasdaq hits record high close

noreply@blogger.com (StockFanatic) — Tue, 04 Aug 2020 03:49:00 +0000

· Investors are entering August looking past the disturbing rate of coronavirus infections and scattered moves to return major cities to lockdowns. Tech shares led the way, amid positive economic data and after the White House was said to be considering acting on its own to boost unemployment benefits.

· The Dow Jones Industrial Average rose 0.89% to end at 26,664.4 points, while the S&P 500 gained 0.72% to 3,294.61. The Nasdaq Composite climbed 1.47% to 10,902.80, beating its previous record high close on July 20.

· The Nasdaq 100 reached a record as traders sought out companies poised to do best in a stay-at-home economy. Apple Inc set an all-time high and Microsoft Corp gained as it tried to salvage a deal for the US operations of TikTok.

· There was a pickup in M&A activity and analysts say this is a positive sign as it means CEOs are more confident about the future.

· The US Dollar bounced higher following its worst July in a decade and Treasuries fell across the yield curve as data showed US manufacturing expanded in July at the fastest pace since March 2019.

· The White House was said to be exploring whether President Donald Trump can act on his own to extend enhanced unemployment benefits.

· Europe’s benchmark gauge rose the most in two weeks after the euro area’s first manufacturing expansion in one-and-a-half years.

· Equities rose in Japan and China, where mainland-listed technology stocks surged on expectations of support from Beijing in response to US moves against Chinese-owned software companies.

• Access to over 8714 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: Fed to keep its interest rate target range

noreply@blogger.com (StockFanatic) — Thu, 30 Jul 2020 02:34:00 +0000

· At the end of its two-day policy meeting, the US Federal Reserve said it will keep its interest rate target range until it is confident the economy has weathered the coronavirus pandemic and is on track for maximum employment. Markets welcomed the news and extended gains, as this likely means that that monetary stimulus is going to remain accommodative for the foreseeable future.

· The Dow Jones Industrial Average rose 160.29 points or 0.61% to 26,539.57, the S&P 500 gained 40 points, or 1.24% to 3,258.44 and the Nasdaq Composite added 1.35% to 10,542.94.

· Chairman Jerome Powell said there are signs the increase in infections is starting to weigh on activity while noting that the path forward for the economy is “extraordinarily uncertain.”

· Recent data point to a possible slowdown in business and hiring as several US states reimpose restrictions after a spike in Covid-19 infections, while deaths in the country caused by the disease surpassed 150,000 on Wednesday.

· The US economy probably contracted a stunning 34.5% in the second quarter, according to consensus, after the previous 5.0% slide. Personal consumption is also seen falling 34.5%. Meanwhile, another 1.44 million Americans may have filed for unemployment claims, up from the prior week's 1.42 million, with continuing claims likely hovering around 16.3 million.

· Amazon.com Inc, Facebook Inc, Apple Inc and Alphabet’s Google were among the biggest boosts for Nasdaq even as the chief executives of all 4 firms faced jabs from lawmakers at a congressional hearing on antitrust issues. Lawmakers told the CEOs that the US technology giants have too much power and control over digital markets and are harming workers, consumers and small businesses across the economy.

• Access to over 8464 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: US markets don’t have much to be cheerful about

noreply@blogger.com (StockFanatic) — Wed, 29 Jul 2020 04:20:00 +0000

· Wall Street closed lower as investors worried about weakening consumer confidence, disappointing financial results and wrangling in the US Congress over a coronavirus aid plan.

· It is a packed week for US investors. As they await news on a stimulus package agreement and for quarterly reports in the earnings season, data showed US consumer confidence had ebbed in July as coronavirus infections flared up across the country.

· The liability protection is for business owners and employers who are concerned that they may face a flood of lawsuits involving claims of unsafe practices brought by customers or employees who contract the coronavirus.

· The Dow Jones Industrial Average fell 205.49 points, or 0.77%, to 26,379.28, the S&P 500 lost 20.97 points, or 0.65%, to 3,218.44 and the Nasdaq Composite dropped 1.27%, to 10,402.09.

· Industrial conglomerate 3M Co was down 4.8%, after it reported a second-quarter plunge in demand across its businesses and McDonald’s Corp fell 2.5%, after a surprisingly big drop in global same-store sales.

· The Federal Reserve has extended seven of its nine emergency lending programmes by three months to 31 Dec in its latest effort to boost the economy. The move came as the FOMC began a meeting that is widely expected to result in no significant policy changes.

· Another focus this week is results from Wall Street’s trillion-dollar market value companies - Apple Inc, Amazon.com Inc and Alphabet Inc - as well as Facebook Inc.

· Of the S&P 500 companies that have reported earnings so far this quarter, about 80% surpassed significantly lowered profit forecasts, according to Refinitiv IBES data.

• Access to over 8464 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: Mixed outlook for markets today

noreply@blogger.com (StockFanatic) — Mon, 27 Jul 2020 12:30:00 +0000

· Investors this week will be looking to the Federal Reserve’s meeting for clues on what comes next for policy amid expectations for more accommodation ahead. That comes as wrangling continues in Washington over a stimulus bill.

· US stocks fell on Friday, concluding a volatile week. The Dow dropped 182.44 points, or 0.68%, to 26,469.89. The S&P 500 slid 0.62% to 3,215.63. The Nasdaq Composite declined by 0.94% to 10,363.18.

· Tech’s struggles lead to weekly losses for indices, while gold rallied to a record. Since the 23 March low, the Nasdaq 100 has rallied 50% while the broader S&P 500 is up 40%.

· The Fed’s July 28-29 meeting could describe the turn the economy seems to be approaching. The US economic outlook has darkened in the past month, according a Reuters poll.

· Things are looking more positive abroad. Gross domestic product growth in both the United States and Europe should take hits next year, according to Société Générale. Yet the firm projects a 5.2% rebound for EU growth in 2022, compared with a 2.5% bounce in the United States.

· European markets closed lower on Friday as escalating diplomatic tensions between the world’s two largest economies continued to weigh on sentiment.

· Mainland Chinese stocks plunged after the latest escalation, with the Shenzhen component diving more than 4% to lead a broad downturn in Asian markets.

• Access to over 8464 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: Risk-on sentiment takes a step back

noreply@blogger.com (StockFanatic) — Fri, 24 Jul 2020 05:36:00 +0000

· US equities closed lower after an unexpected rise in jobless claims rekindled concern the economic recovery has stalled. Growing signs of a worsening coronavirus pandemic also gave rise to fear that it could exacerbate the economic recession.

· All three major US stock averages lost ground, with falling momentum in stocks like Apple Inc, Microsoft Corp and Amazon.com. The Nasdaq closed lower by 244.71 points or 2.29% to 10,461.42, practically wiping out the gains for the week. The Dow Jones Industrial Average fell 353.51 points, or 1.31%, to 26,652.33, the S&P 500 lost 1.23%, to 3,235.66.

· Earnings report was a mixed bag. Microsoft dropped 4.3% after reporting its cloud computing business’ first-ever quarterly growth under 50%. Tesla Inc reported a profit for the fourth straight quarter, setting the company up for inclusion in the S&P 500. But the stock slid as analysts questioned whether the electric automaker’s stock price matched its performance.

· US jobless claims unexpectedly ticked higher to 1.416 million last week even as Congress works to pass new stimulus to sustain consumer spending.

· Workers being sent home are joining a second wave of layoffs, triggered by lack of demand as the economy battles a recession, which started in February. Bankruptcies are rising in the retail sector.

· European shares erased earlier gains made on strong regional earnings reports. Consumer confidence deteriorated in July despite expectations of an improvement. Europe has managed to reopen its economy without suffering from a second wave of the virus. The euro gained 0.2% to $1.1593, reaching the strongest in more than 21 months on its fifth consecutive advance.

• Access to over 8464 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: US stocks rise over a possible new spending bill

noreply@blogger.com (StockFanatic) — Thu, 23 Jul 2020 07:51:00 +0000

· Stocks got a boost on reports that Republicans are considering extending current unemployment benefits at US$400 per month through December.

· The Dow gained 165.44 points, or 0.62% to close at 27,005.84. The S&P 500 climbed 0.57% to 3,276.02. The Nasdaq Composite advanced 0.24% to 10.706.13.

· American diplomats in Wuhan are preparing to leave after China vowed to retaliate for the forced closure of its consulate in Houston. The State Department said it shuttered the Houston mission to protect US IP and private information, and Senator Marco Rubio called it a massive spy centre.

· Second quarter earnings season continues, with 75 constituents of the S&P 500 having posted results. Of those, 77.3% have beaten consensus, according to Refinitiv data.

· But expectations have set a low bar. Analysts now see aggregate S&P 500 second quarter earnings plunging by 41.2% year-on-year, per Refinitiv.

· US home sales increased by the most on record in June, boosted by historically low mortgage rates, but the outlook for the housing market is being clouded by low inventory and high unemployment amid the Covid-19 pandemic.

· On the virus front, the world topped 15 million infections, and California surpassed New York as the state with the most confirmed cases. The US sealed a pact for an initial 100 million doses of a vaccine Pfizer is developing with BioNTech, sending both higher. Hong Kong and Japan hit new highs in cases, as did Australia.

· European stocks closed lower on Wednesday as concerns over the coronavirus outweighed optimism over the European Union’s recovery fund.

• Access to over 8420 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: Uncertainty may weigh on markets in Asia

noreply@blogger.com (StockFanatic) — Wed, 22 Jul 2020 05:04:00 +0000

· The S&P 500 edged higher on Tuesday, as investors rotated into economically sensitive cyclical. Tech shares led the Nasdaq Composite lower. Gold held on to overnight gains.

· Investors cheered a key step toward fiscal integration in the European Union via a new recovery fund. The 750-billion-euro (US$864.68 billion) fund had been hailed as a game changer and unprecedented act of solidarity in almost seven decades of European convergence. The move helped the single currency hit one-and-a-half-year highs.

· The Dow Jones Industrial Average rose 0.6%, to 26,840.4, the S&P 500 gained 0.17%, to 3,257.3 and the Nasdaq Composite dropped 0.81%, to 10,680.36.

· Comments from key figures may put markets on their guard. President Donald Trump said the virus will probably get worse before it gets better. Cases have been rising across the United States, with now nearly 141,000 deaths recorded from the disease.

· Also to weigh on markets were comments made by US Secretary of State Mike Pompeo that the United States wants to build a global coalition to counter China, which he accused of exploiting the coronavirus pandemic to further its own interests.

· As earnings continue to roll in, investors are taking stock of a surge in global equities that left the MSCI gauge of developed and emerging-market shares at the highest since February. After the success of a European rescue package this week, focus turns to negotiations in the US between Republicans and Democrats on legislation to prop up the hobbled economy.

· Senator Mitch McConnell has cast doubt on reaching a fresh US rescue bill before some current benefits expire, as Democrats called Republicans’ US$1-trillion-proposal insufficient.

• Access to over 8378 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: Markets optimistic on prospects of a vaccine

noreply@blogger.com (StockFanatic) — Tue, 21 Jul 2020 09:34:00 +0000

· Technology shares pushed the Nasdaq to a record closing high, as promising trial results from potential Covid-19 vaccines helped investors look beyond spiralling new cases of the disease.

· The Dow Jones Industrial Average rose 8.92 points, or 0.03%, to 26,680.87, the S&P 500 gained 27.11 points, or 0.84%, to 3,251.84 and the Nasdaq Composite added 263.90 points, or 2.51%, to 10,767.09.

· Of the 11 major sectors in the S&P 500, consumer discretionary and tech enjoyed the largest percentage gains, on demand for companies that benefit from diminished economic activity.

· On the virus front, AstraZeneca jumped to a record after results from a vaccine trial were published, but the rally faded after analysts said the data, while good, were not as stellar as hoped for.

· Second-quarter earnings season chugged along. Some 48 companies in the S&P 500 have posted results, with 77.1% of those beating consensus, according to Refinitiv data. In aggregate, analysts now expect S&P 500 second-quarter earnings to have dropped 43.2% year-on-year, per Refinitiv.

· In Washington, lawmakers are starting to hammer out a rescue package to replace some of the expiring benefits earlier versions contained. Euro-area leaders appeared close to an agreement on stimulus; while the total size of the recovery package is in flux, an earlier proposal was for 750 billion euros (US$858 billion). The latest arrangement includes 390 billion euros of grants and 360 billion euros of low-interest loans.

· Chinese stocks rebounded on Monday after the government adopted measures to slow the pace of gains. The Shanghai Composite jumped by more than 3%, signalling the market may continue the blistering run it has been on in July.

• Access to over 8378 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: Stimulus will be in focus this week as markets falter

noreply@blogger.com (StockFanatic) — Mon, 20 Jul 2020 04:58:00 +0000

· On Friday, the Dow slid 0.23%, to 26,672.0. The S&P 500 gained 0.28% to 3,224.7. The Nasdaq Composite rose 0.28% to 10,503.2. The major averages posted a muted performance as a decline in Netflix weighed on major tech stocks.

· Policy makers in the US will resume talks this week on another round of stimulus that could prove critical to the still-fragile recovery of the world’s largest economy.

· Earlier this year, President Donald Trump had signed a stimulus package worth roughly US$2 trillion which expanded unemployment benefits for those laid off during the pandemic. Among these expanded benefits, a US$600-a-week check was included. However, these extra payments are set to expire later this month.

· Earnings season in the US continues this week. IBM gets the tech ball rolling on Monday, followed by Microsoft, Intel, Snap and Texas Instruments. In finance, Blackstone, Amex and Capital One weigh in, as do Swiss banks UBS and Julius Baer. Tesla, Daimler and Hyundai will show how carmakers are doing. And on Thursday, all eyes will be on Twitter, following the social platform's recent hacking debacle.

· EU leaders failed to reach an agreement on a 750 billion-euro stimulus package, after a dispute over how much of the package should be disbursed as grants and how much as loans. Germany and France are said to have insisted at least 400 billion euros should be handouts. Hawks from northern Europe pushed for a much lower figure.

· Over in Hong Kong, the city tightened restrictions again after reported Covid-19 cases surged to more than 100 in 24 hours over the weekend. Hong Kong leader Carrie Lam said the situation was “very serious and there is no sign of it coming under control.”.

• Access to over 8378 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: S&P 500 at its highest since early June

noreply@blogger.com (StockFanatic) — Thu, 16 Jul 2020 03:06:00 +0000

· US stocks ended sharply higher on Wednesday, with the S&P 500 at its highest since early June, following promising early data for a potential Covid-19 vaccine and a strong quarterly report from Goldman Sachs.

· Adding to investors’ enthusiasm, the Federal Reserve’s Beige Book survey showed US businesses saw an uptick in activity into the beginning of July, as states eased restrictions to contain the novel coronavirus pandemic.

· The Dow Jones Industrial Average rose 0.85% to end at 26,870.03 points, while the S&P 500 gained 0.91% to 3,226.55. The Nasdaq Composite climbed 0.59% to 10,550.49.

· Asian markets were choppy on barbs between Beijing and Washington over Hong Kong, but European bourses rose almost 2%, the mood fairly ‘risk on’ on vaccine hopes.

· Europe's growth-sensitive sectors such as travel & leisure and industrial companies led gains. The European Central Bank started a two-day meeting, though no major announcement is expected when it concludes on Thursday.

· A slew of economic data in China that will provide clues on the path of economic recovery from the pandemic.

· In contrast to his recent combative public tone, President Donald Trump has apparently indicated that he doesn’t want to further escalate tensions with Beijing, and has ruled out additional sanctions on top officials for now, which may be good news for markets if true.

• Access to over 7788 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: US equity markets rebound

noreply@blogger.com (StockFanatic) — Wed, 15 Jul 2020 01:16:00 +0000

· US stocks climbed to a five-week high, led by gains in energy, materials and industrial shares amid a resurgent US coronavirus outbreak. The S&P 500 rose 0.5% after wavering earlier in the session. The Dow Jones Industrial Average rose more than 375 points, or 1.5%. The Nasdaq Composite slipped 0.1%.

· The second-quarter earnings season began on Tuesday as several major US banks reported results. The collective message was to be prepared for soured loans as JPMorgan, Citi and Wells Fargo set aside almost US$28 billion for bad loans in the second quarter, a mark only surpassed by the last three months of 2008. The total was higher than expected, and all three lenders said their economic outlook had worsened as the pandemic persists.

· US consumer prices increased by the most in nearly eight years in June as businesses reopened, but the underlying trend suggested inflation would remain muted and allow the Federal Reserve to keep injecting money into the ailing economy.

· Tension grew between Washington and Beijing. President Donald Trump issued an order to end Hong Kong’s special status with the US and signed legislation that would sanction Chinese officials responsible for cracking down on political dissent in Hong Kong

· Selling of China stocks by overseas investors hit an all-time high on Tuesday as this month's US$1.5 trillion rally ground to a halt. They offloaded a net 17.4 billion yuan (US$2.5 billion) of the country's equities, the most since late 2016 when the Shenzhen trading link joined the Shanghai connect online. Recent stake cuts by some large state-backed funds were a signal that policy makers want the market to cool down some, analysts observed.

• Access to over 7788 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: A strong global quarterly rally

noreply@blogger.com (StockFanatic) — Wed, 01 Jul 2020 06:07:00 +0000

· Stocks closed sharply higher yesterday as concern over the virus shifted and the focus turned to better than expected economic numbers.

· US consumer confidence rebounded in June as businesses reopened. There was also a sharp surge in hiring and consumer spending in May, along with improvements in the housing market and the manufacturing sector.

· The improvements led Federal Reserve Chair Jerome Powell to say the economy had entered an important new phase sooner than expected. He had earlier cautioned that the economic outlook “is extraordinarily uncertain” and would depend on “our success in containing the virus.”

· The S&P 500 rallied to secure its biggest quarterly percentage gain in more than two decades, but it is still down about 4% on the year. Gains in June stood at just 2% due to the flare-up in virus cases.

· A 17.78% gain in the Dow marked its best quarterly performance since a 21.56% rally in the first quarter of 1987 while the Nasdaq’s 30.63% jump was its best quarter since a 48.18% gain in the fourth quarter of 1999.

· Overnight, the Dow Jones Industrial Average rose 217.08 points, or 0.85%, to 25,812.88, the S&P 500 gained 47.05 points, or 1.54%, to 3,100.29 and the Nasdaq Composite added 184.61 points, or 1.87%, to 10,058.77.

· The pan-European STOXX 600 index rose 0.13% and MSCI’s gauge of stocks across the globe gained 1.04%. Emerging market stocks rose 0.11%. Overnight, MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.67% higher, while Japan’s Nikkei futures lost 0.09%.

· Data wise, Chinese PMIs showed an ongoing manufacturing-led rebound. The decline in South Korea's exports — a bellwether for global trade — may have eased to 9.1% year-on-year in June from almost 24% in May. Pointing the other way, consensus is for Caixin's China factory PMI — more export-oriented than the official measure — to drop to 50.5 from 50.7.

• Access to over 7788 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: Resurgence worry draws markets down

noreply@blogger.com (StockFanatic) — Mon, 29 Jun 2020 07:22:00 +0000

· US shares fell to the lowest level in more than two weeks on Friday as the sharp increase in Covid-19 cases added to economic anxiety.

· Global cases of Covid-19 surged past 10 million and are multiplying faster than ever, a rebuff to health experts and world leaders who had hoped the virus would fade away in the summer heat.

· The Dow slid 730.05 points, or 2.84%, to close at 25,015.55. The S&P 500 dropped 2.42% to 3,009.05. The Nasdaq Composite closed 2.59% lower at 9,757.22. A recent surge in coronavirus cases led investors to worry the resurgence could further damage the economy. The pan-European Stoxx 600 closed 0.4% lower, with most sectors and major bourses in negative territory.

· On the bright side, economic data from China show profits at China’s industrial firms rose for the first time in six months in May, suggesting the country’s economic recovery is gaining traction and brightening the outlook for manufacturing investment and jobs.

· On the policy front, China’s central bank said it will implement new monetary tools to make sure liquidity reaches the real economy.

· Upcoming US economic data and deadlines for renewing some fiscal stimulus measures in July could prove key tests for an equities rebound that has wavered in recent weeks.

· The raft of US data this week include reports on employment, consumer confidence and manufacturing, which will be scrutinised for clues on whether a nascent rebound in the US economy remains intact.

• Access to over 7788 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: Strength in banks offset virus woes

noreply@blogger.com (StockFanatic) — Fri, 26 Jun 2020 05:26:00 +0000

· US bank stocks soared in choppy trading ahead of annual stress test results, helping to offset investor jitters over alarming increases in new coronavirus cases.

· The Dow Jones Industrial Average rose 299.66 points, or 1.18%, to 25,745.6, the S&P 500 gained 33.43 points, or 1.10%, to 3,083.76 and the Nasdaq Composite added 107.84 points, or 1.09%, to 10,017.00.

· All three indices had opened lower after data showed the number of Americans filing claims for unemployment benefits fell less than expected last week, likely as hiring by reopening businesses is being partly offset by a second wave of layoffs.

· But the S&P’s financial sector, up 2.7%, stayed strong for the session and was the S&P’s top percentage gainer. Earlier, regulators had unveiled two rules easing restrictions covering large banks with complex trading and investment portfolios. However, most banks were lower in post-market trading.

· The Federal Reserve said that the largest US banks are likely to survive the coronavirus crisis but warned a prolonged economic downturn could saddle them with hundreds of billions of dollars in losses on soured loans.

· Meanwhile, coronavirus infections continued to spread across America. Texas posted its worst day for new cases, spurring the governor to halt the state’s reopening.

· In central banks, the ECB said some Governing Council members expressed reservations about the size of the PEPP expansion at their meeting this month, but broadly agreed it was the "most effective and efficient tool" in the current environment.

· Asian equity index futures signal gains for Japanese and Australian stocks. It is a busy Friday on the data front, with New Zealand and South Korea reporting increases in consumer confidence. Also to come are Tokyo CPI, Singapore industrial production and Thailand foreign reserves. Hong Kong markets return after Thursday’s holiday, while China and Taiwan remain closed.

• Access to over 7788 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: Lockdown fears stall stocks

noreply@blogger.com (StockFanatic) — Thu, 25 Jun 2020 06:02:00 +0000

· Intensifying fears of officials having to reinstate lockdown measures around the country saw US indices suffer their biggest daily percentage drop in almost two weeks. Nasdaq, which had registered its fifth record closing high on Tuesday, snapped an eight-day winning streak, which was its longest since December 2019.

· The resurgence in cases led to markets discounting earlier optimism. The Dow Jones Industrial Average fell 710.16 points, or 2.72%, to 25,445.94, the S&P 500 lost 80.96 points, or 2.59%, to 3,050.33 and the Nasdaq Composite dropped 222.20 points, or 2.19%, to 9,909.17.

· The S&P 500 finished the session about 10% under its 19 Feb closing record high while the Dow Jones Industrials was about 14% from its 12 Feb record close. Wall Street’s fear gauge, the CBOE volatility index, closed 2.47 points higher at 33.84.

· The United States has recorded the second-largest rise in infections since the health crisis began, with a flare-up of cases in states where restrictions meant to contain the disease were lifted early. The pandemic appeared to be causing wider and deeper damage to economic activity than first thought. The IMF said it now expects global output to shrink by 4.9%, compared with a 3.0% contraction predicted in April. Advanced economies have been particularly hard hit, with US output now expected to shrink 8.0%, more than two percentage points worse than the April forecast.

· The US is taking the trade war transatlantic, weighing new tariffs on US$3.1 billion of exports from France, Germany, Spain and the UK. The news affected European markets as well.

· Asian equities are set to open on a damp note, based on index futures. The data docket is thin for today. The Philippines central bank is expected to hold interest rates unchanged. New Zealand reports trade data and Australia releases figures on job vacancies.

· Markets are closed in China, HK and Taiwan for local holidays.

• Access to over 7788 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: A gloomy start likely for markets

noreply@blogger.com (StockFanatic) — Mon, 22 Jun 2020 02:44:00 +0000

· Rising concerns over the spread of the coronavirus saw increased demand for safe-haven assets late last week. The weekend also saw further increases in Covid-19 infection rates, including in Germany and Australia, the two countries that had been cited as among the most successful in containing the pandemic.

· US equities fell on Friday while much of Asia closed in the green. The S&P closed at 3,097.74, which was a loss of 17.60 points or 0.6%, while the Nasdaq closed unchanged at 9,946.12. The Dow closed at 25,871.46, falling 208.64 points or 0.8%.

· Market have been sensitive to any indication that a second wave of infections is under way, as it could lead to new lockdowns. The trend toward reopening the US economy has lifted the stock market in recent weeks.

· This week, investors will be bracing for some level of turmoil amid headwinds from geopolitics and the Covid-19 pandemic.

· China’s proposed national security law that would give the mainland the right to directly prosecute Hong Kong residents is still vaguely defined regarding the offenses. There has been little direct US reaction, which will make it harder for investors to get clarity on what the moves will mean for assets.

· Economic data wise, investors may get fresh signs on how the global recovery is going, with flash PMIs due. On Monday, South Korea reports 20-day imports and exports, seen as key early indicators for the health of global trade. RBA Governor Lowe is participating in a panel titled Global Economy and Covid-19.

• Access to over 7788 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here

Market Commentary: Hopes of a fast recovery fading fast

noreply@blogger.com (StockFanatic) — Fri, 19 Jun 2020 08:21:00 +0000

· All three major US stock indices were range-bound and oscillated through much of the day, but the S&P ended the session in the black along with the tech-heavy Nasdaq.

· The Dow Jones Industrial Average fell 39.51 points, or 0.15%, to 26,080.1, the S&P 500 gained 1.85 points, or 0.06%, to 3,115.34 and the Nasdaq Composite added 32.52 points, or 0.33%, to 9,943.05.

· Overnight economic events include a narrow fall in US jobless claims last week, suggesting the labour market has a long road to recovery.

· The ECB reached another trillion-euro milestone in its fight to bolster economies. The BOE voted 8-1 to raise its bond-buying programme by 100 billion pounds, while keeping rates unchanged in a unanimous decision. The bank said further action may be needed but didn't discuss negative rates.

· In Asia, Japanese stocks ended lower, with the Nikkei Stock Average fell 0.4% to 22,355.46. Mainland Chinese stocks made slight gains, extending an uptrend since Tuesday's sharp rebound which was driven by the Fed's latest round of stimulus. The benchmark Shanghai Composite Index rose 0.1% to settle at 2,939.32.

· New Zealand's NZX-50 retreated from a monster gain on Wednesday to end at 11,225.28 as regional equity markets fretted about a resurgence in coronavirus cases. Australian shares lost 0.9% to close at 5936.5 after data showed the country's unemployment rate surged to a 19-year high of 7.1% in May.

· Look out for Japan CPI and BOJ minutes today to see if Asian markets manage to end the week in green.

• Access to over 7788 cross-asset publications and commentary delivering insights from global research and strategy teams.

• Easy-to-use search capabilities, with better and faster text-based searching.

To Subscribe: Click Here | Read Reports Highlights: Click Here