Morning 3-30

Relatively Quiet Start to trade so far today. Virus cases have not peaked Latest update 735,000 cases and 34k deaths. Spain has Overtaken China in Number of reported cases and regrettably reported largest number of fatalities yesterday at 537.President trump has extended the social distancing program by  2 more weeks as cases in U.S. continue to trend higher latest update 142,793 cases  and 2490 deaths, president also said close to 100k may die. Rumors continue to swirl about a Tokyo Lockdown causing some steep loses in NKY in early trade, the index did rally but still closed lower by 1.57%,10 year yield a bit lower by 1 Bps. Stocks a touch weaker, Spoos were rallying into Asian Close likely following NKY higher but ran into some Sellers once European traders came online, A hefty 120 handle range in Spoos but they like most worldwide stocks trading lower. Crude Oil Dipped below $20 last night a 17-year low! Month End tomorrow and A busy Economic Calendar as March Numbers will be reported traders want to see if the Economic fallout is as bad as the markets are pricing. Dollar higher today, not good for “Risk” assets

NEWS:

Fitch cut Britain’s sovereign debt rating late Friday, saying the country’s debt levels would increase as the government boost spending to combat the rapid spread of Covid-19 and uncertainty surrounding trade negotiations with the European Union also posed risks (Trading economics)

Australia announced an $80 B job rescue plan and Japan hinting at larger cash payouts to her citizens (BBG)

The People’s Bank of China unexpectedly lowered its 7-day reverse repo interest rate by 20 basis points to 2.2 percent on March 30th, 2020. It is the third rate cut since November and the biggest slash in nearly five years as policymakers step up efforts to support the economy battling with the coronavirus. The central bank also pumped CNY 50 billion ($7 billion) into money markets through seven-day reverse repos, the first cash injection in 29 days via the liquidity tool. (trading Economics)

The economic sentiment indicator in the Euro Area dropped 8.9 points from the previous month to 94.5 in March 2020, suffering its steepest monthly decline since records began in 1985. Morale deteriorated sharply among service providers (-2.2 vs 11.1 in February), retailers (-8.3 vs -0.2), manufacturers (-10.8 vs -6.2), constructors (2.7 vs 5.4) and consumers (-11.6 vs -6.6). Among the bloc’s largest economies, sentiment fell sharpest in Italy, the European country worst hit by the health crisis, and in Germany

Virus news (ITC Markets)

WSJ: Kansas Doctors are using 2 drugs together to treat advanced C-19 symptoms, hydroxychloroquine and azithromycin https://on.wsj.com/2xxDHMI  

-Free Radio Asia: Wuhan residents are growing increasingly skeptical about the official death toll of ~2500 based on the number of funeral homes returning cremated remains to families https://bit.ly/33WmMzs

-Dr Anthony Fauci, US Dir at Nat Inst Of Allergy/Infectious Diseases: C-19 could cause between 100- 200k deaths with millions of cases

Markets:

  Month end tomorrow and then focus on US and China Economic Data points. Tonight at 8:00 China releases her first PMI data and then tomorrow AT 8:45 another round of PMI data. Fed will be buying $75 billion a day in QE last week was one of the tightest ranges in 10 year yields we have seen in a few weeks; it appears the Feds buying has calmed markets down a bit. The MOVE index or a measure of Volatility in treasury Complex closed at lowest levels on Friday in roughly a. month

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