Morning Report
Morning Report – Monday 20th April
Main Headlines
Global markets were weathering the collapse in oil prices, helped by prospects of Chinese stimulus and signs of infection rates decelerating in some countries. European stock futures rose, S&P 500 contracts erased losses and Asian markets traded mixed. Japanese shares dropped after the nation’s exports slid more than expected. Treasuries and gold were steady.
WTI opened the week by sagging to the lowest since 1999, falling about 16% to $15 a barrel, as the demand outlook remained grim. Near-term prices traded at big discounts to later-dated contracts on concern storage space is running low.
There were some positive signs in the coronavirus fight over the weekend. The U.S. hot spot of New York appeared to be “on the other side” of the outbreak, its governor said, after deaths and the number of people admitted to hospital fell. Spain, France and the U.K. reported the fewest fatalities in weeks, while Sweden claimed to be “on a sort of plateau.” Germany reopens its economy on a limited basis today.
GBP
The U.K. government issued a furious defence of his handling of the coronavirus crisis – after a report in the Financial Times criticising the procurement of ventilators and a Sunday Times article which suggested the PM failed to take the virus seriously in its early stages – as ministers said there was no imminent prospect of lifting the lockdown on the country. Officials begin a week of discussions today over the post-Brexit U.K.-EU relationship. Britain’s opposition to extending the transition has hardened even as officials cited little progress beyond identifying key areas of disagreement.
EUR
ECB officials have held early talks with the European Commission’s department for financial stability and capital markets on setting up a eurozone bad bank that would take billions of euros in debt off lenders’ balance sheets, the FT said. The bad bank would take over non-performing loans left over from the 2008 financial crisis as well as the expected wave of toxic debt triggered by the pandemic’s economic fallout.
USD
The dollar is stronger today as investors prepared for a dour earnings season. Trump said over the weekend that Republicans were “close” to getting a deal done with the democrats on a support package for small businesses. The S&P 500 has still rallied over 30% from its March lower, thanks in part to the extreme easing steps taken by the Federal Reserve.
Main Economic Data/Central Banks/Government (All Times BST)
7:00 a.m.: Germany March PPI
9:00 a.m.: ECB Feb. Current Account
10:00 a.m.: Euro-Area Feb. trade balance
EU, U.K. hold second round of negotiations over post-Brexit trade
Main Headlines
Global markets were weathering the collapse in oil prices, helped by prospects of Chinese stimulus and signs of infection rates decelerating in some countries. European stock futures rose, S&P 500 contracts erased losses and Asian markets traded mixed. Japanese shares dropped after the nation’s exports slid more than expected. Treasuries and gold were steady.
WTI opened the week by sagging to the lowest since 1999, falling about 16% to $15 a barrel, as the demand outlook remained grim. Near-term prices traded at big discounts to later-dated contracts on concern storage space is running low.
There were some positive signs in the coronavirus fight over the weekend. The U.S. hot spot of New York appeared to be “on the other side” of the outbreak, its governor said, after deaths and the number of people admitted to hospital fell. Spain, France and the U.K. reported the fewest fatalities in weeks, while Sweden claimed to be “on a sort of plateau.” Germany reopens its economy on a limited basis today.
GBP
The U.K. government issued a furious defence of his handling of the coronavirus crisis – after a report in the Financial Times criticising the procurement of ventilators and a Sunday Times article which suggested the PM failed to take the virus seriously in its early stages – as ministers said there was no imminent prospect of lifting the lockdown on the country. Officials begin a week of discussions today over the post-Brexit U.K.-EU relationship. Britain’s opposition to extending the transition has hardened even as officials cited little progress beyond identifying key areas of disagreement.
EUR
ECB officials have held early talks with the European Commission’s department for financial stability and capital markets on setting up a eurozone bad bank that would take billions of euros in debt off lenders’ balance sheets, the FT said. The bad bank would take over non-performing loans left over from the 2008 financial crisis as well as the expected wave of toxic debt triggered by the pandemic’s economic fallout.
USD
The dollar is stronger today as investors prepared for a dour earnings season. Trump said over the weekend that Republicans were “close” to getting a deal done with the democrats on a support package for small businesses. The S&P 500 has still rallied over 30% from its March lower, thanks in part to the extreme easing steps taken by the Federal Reserve.
Main Economic Data/Central Banks/Government (All Times BST)
- 7:00 a.m.: Germany March PPI
- 9:00 a.m.: ECB Feb. Current Account
- 10:00 a.m.: Euro-Area Feb. trade balance
- EU, U.K. hold second round of negotiations over post-Brexit trade