Optimism About States Reopening May Generate Buying Interest

[ADVFN]( [WorldDaily Markets Bulletin]( [Daily world financial news]( [Monday, 27 April 2020 10:55:35]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( Avoid These 7 Financial Advisor Mistakes A financial advisor's guidance is crucial for any healthy retirement plan, but most people make these avoidable mistakes when hiring one. [Click Here to Find Out More..]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a higher opening on Monday, with stocks likely to add to the gains posted in the previous session. The upward momentum on Wall Street comes after New York Governor Andrew Cuomo announced plans for a phased reopening of his state?s economy. Cuomo suggested the first phase, which involves ?low risk? businesses in the manufacturing and construction sectors, could begin shortly after New York?s stay-at-home order expires on May 15. The decision to announce the reopening plans comes as New York has seen as steady decline in coronavirus hospitalization rates, with Cuomo expressing optimism the worst is over. ?The numbers are on the decline. Everything we have done is working,? Cuomo said during a press briefing on Sunday, ?There?s no doubt that we?ve gone at this point through the worst. And as long as we act prudently going forward, the worst should be over.? The announcement by Cuomo comes as other states, including several led by Republican governors, have already started reopening their economies. Buying interest may also be generated amid optimism about additional stimulus ahead of Federal Reserve and European Central Bank meetings later this week. Earlier today, the Bank of Japan expanded its monetary stimulus for the second straight month to support economic and financial activities amid the coronavirus pandemic. After a strong start and a subsequent retreat into the red, U.S. stocks kept climbing higher to eventually close on a high note on Friday. The major averages all ended firmly in positive territory. The Dow ended up 260.01 points, or 1.11 percent, at 23,775.27, the S&P 500 rose 38.94 points, or 1.39 percent to 1,836.74 and the Nasdaq settled up 139.77 points, or 1.65 percent at 8,634.52. However, the averages posted losses for the week. While the Dow and the S&P 500 shed 1.9% and 1.3%, respectively, the Nasdaq eased 0.2%. Data showing a sharp drop in durable goods orders in the month of March and the University of Michigan's report showing a deterioration in consumer sentiment in April pulled the market down from early highs. However, stocks rebounded after President Donald Trump signed a $484 billion stimulus package that will replenish a fund for small business lending and direct money to hospitals and efforts to ramp up U.S. testing capacity in the fight against COVID-19. Another trigger for the market today was the sharp jump in crude oil prices. After suffering big losses during the earlier part of the week that sent the futures contract plunging to sub-zero levels for the first ever time in history, oil prices showed a significant rebound. Investors were also digesting a slew of corporate earnings reports, including from American Express (AXP) and Verizon (VZ). Data from the Commerce Department showed a 14.7 percent drop in new durable goods orders in the month of March. Orders had increased by a downwardly revised 1.1 percent in February. Economists had expected durable goods orders to fall 15 percent in March. The drop in orders in March was the steepest since August 2014. A sharp 41 percent decline in demand for transportation equipment, due largely to a near 300 percent drop in orders for non-defense aircraft and parts, amid the ongoing coronavirus pandemic, contributed to the fall in new durable goods orders. Excluding transportation, new orders were down 0.2 percent, the report from the Commerce Department showed. Excluding defense, new orders fell 15.8 percent. Meanwhile, core capital goods orders, excluding aircraft and military hardware, edged up 0.1 percent in the month, the data showed. Meanwhile, a report from the University of Michigan said its consumer sentiment index was revised higher to 71.8 in April of 2020 from a preliminary reading of 71. The score still remains the lowest since December 2011. --------------------------------------------------------------- --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( The Treasury Department is scheduled to announce the results of its auction of $42 billion worth of two-year notes at 11:30 am ET. At 1 pm ET, the Treasury Department is due to announce the results of its auction of $43 billion worth of five-year notes. --------------------------------------------------------------- --------------------------------------------------------------- Stocks in Focus Shares of Check Point Software (CHKP) are moving significantly higher in pre-market trading after the cybersecurity company reported first quarter results that exceeded analyst estimates on both the top and bottom lines. Aerospace giant Boeing (BA) may also see initial strength after terminating a $4.2 billion agreement to establish a joint venture with Brazil's Embraer. On the other hand, shares of Diamond Offshore (DO) are likely to come under pressure after the offshore drilling contractor filed for Chapter 11 bankruptcy protection. Heavy equipment maker Caterpillar (CAT) may also move to the downside after Morgan Stanley downgraded its rating on the company?s stock to Underweight from Equal-Weight. --------------------------------------------------------------- How To Get An Early Piece Of The Next Big IPO Breakthrough in augmented reality could transform the cosmetic surgery industry. Now accepting Pre-IPO investors, sign up to receive exclusive access. [Click Here to Find Out More..]( --------------------------------------------------------------- Europe European stocks have moved sharply higher on Monday as new coronavirus infections showed clear signs of a slowdown and Italy followed several other European countries in announcing that it will begin to phase out current coronavirus lockdown measures. Italian government bond yields dropped as ratings agency S&P Global affirmed Italy's credit rating at 'BBB/A-2' while keeping the negative outlook because of the expected surge in public debt. The announcement helped calm worries about a potential junk rating for the eurozone's third largest economy. Amid expectations for more stimulus measures, investors looked ahead to a slew of central bank meetings this week for further direction. Earlier today, the Bank of Japan expanded monetary stimulus and pledged to buy unlimited amount of bonds to keep borrowing costs low. While the German DAX Index has surged up by 2.4 percent, the French CAC 40 Index is up by 1.9 percent and the U.K.?s FTSE 100 Index is up by 1.6 percent. British industrial equipment rental company Ashtead Group has soared. In its Covid-19 trading update, the company said it was trading in line with expectations in the beginning of March, and this continued through the second week of March with limited impact from the consequences of the virus pandemic. InterContinental Hotels Group has also advanced. The multinational hospitality company said it has secured new financing arrangements, which include amending its syndicated revolving credit facility to include a waiver of existing covenants until December 31, 2021. Also, the Bank of England confirmed IHG as an eligible issuer for the U.K. Government's CCFF, and IHG has issued 600 million pounds in commercial paper under this facility. Redrow has also risen. The homebuilder said that it intends to commence mobilizing sites in the week commencing May 11th, with a phased return to construction on May 18th, subject to conditions. Air France-KLM shares have also jumped. The company said it engaged in talks with the French and Dutch governments regarding the implementation of specific aid measures that would enable them to maintain their solvency. Deutsche Bank shares have also surged higher. The German bank said it expects to report first quarter group profit before tax of 206 million euros and net income of 66 million euros, above market expectations. The lender noted it would continue to work towards its 2022 targets of a 12.5 percent CET1 ratio target and 5 percent leverage ratio. Bayer AG has also jumped. The pharmaceutical and life sciences company said that its first quarter net income increased 20 percent to 1.49 billion euros from last year's 1.24 billion euros. The company said the Covid-19 pandemic led to higher demand and increased sales at some business units, partly due to inventory buildup, while the restrictions related to the pandemic are adversely impacting certain other business. On the other hand, Swiss logistics firm Kuehne + Nagel International has fallen after its first-quarter earnings declined 23.2 percent to 139 million Swiss francs from last year's 181 million francs. --------------------------------------------------------------- --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks rose on Monday amid signs that the coronavirus outbreak is peaking and that countries around the world are beginning to ease restrictions put in place because of the pandemic. Traders shifted their focus to a U.S. Federal Reserve meeting ending Wednesday and a European Central Bank meeting on Thursday after the Bank of Japan ramped up its purchases of corporate debt to help ease funding strains. Chinese shares eked out modest gains amid mixed catalysts. China reported just three new coronavirus cases today and no new deaths for the 12th day in a row, while a continued fall in industrial profits showed that the country is facing a continued decrease in demand for goods from foreign countries due to Covid-19's impact on their economies. China's industrial profits declined 34.9 year-on-year in March following a 38.3 percent slump in the January to February period, official data showed. In the first quarter, industrial profits declined 36.7 percent from the same period last year. The benchmark Shanghai Composite Index rose 6.97 points, or 0.3 percent, to 2,815.49, while Hong Kong's Hang Seng Index ended up 448.81 points, or 1.9 percent, at 24,280.14. Japanese shares posted strong gains as the Bank of Japan expanded its monetary stimulus for the second straight month to support economic and financial activities amid the Covid-19 pandemic. The policy board unanimously decided to increase the maximum amount of additional purchases of commercial papers and corporate bonds and raised the upper limit of outstanding holdings to about 20 trillion yen. The central bank, meanwhile, downgraded its inflation and GDP forecasts for the fiscal 2020. Better-than-expected earnings from the likes of Advantest and Fanuc also boosted investor sentiment. The Nikkei average jumped 521.22 points, or 2.7 percent, to 19,783.22, its highest closing since April 17. The broader Topix closed 1.8 percent higher at 1,447.25. Advantest soared 8.4 percent after the chip-testing equipment supplier forecast a 14.2 percent year-on-year increase in operating profit for the April-June quarter. Industrial robot maker Fanuc rallied 12 percent after a strong forecast for the April-September half. Market heavyweight SoftBank gained 4.5 percent and Fast Retailing added 2.9 percent. Mitsubishi UFJ Financial rose 2.3 percent on reports that its unit MUFG Bank plans to cut its workforce by about 8,000 employees. Australian markets recovered from an early slide to finish sharply higher for the day. The benchmark S&P/ASX 200 index climbed 78.80 points, or 1.5 percent, to 5,321.40, while the broader All Ordinaries index ended up 87.60 points, or 1.7 percent, at 5,388.30. National Australia Bank shares were in a trading halt as the lender reported a 51 percent drop in half-year profit, slashed its dividend and sought an extra $3.5 billion of investment from shareholders. ANZ lost 2.3 percent and Westpac Banking Corp slumped 4.4 percent. Mining heavyweights BHP and Rio Tinto edged down slightly, while gold miners Evolution Mining, Regis Resources and Northern Star Resources rose about 3 percent. Seoul stocks rebounded as the country reported only 10 new cases of the coronavirus, its 26th straight day below 100. The government is expected to announce a timeline for reopening schools no later than early May amid the slowing caseload. The benchmark Kospi surged up 33.76 points, or 1.8 percent, to 1,922.77 on hopes for more policy support after the government said it would increase an aid package to 135 trillion won from the previously set 100 trillion won to help key industries disrupted by the Covid-19 pandemic. Financials led the surge, with Shinhan Financial, a major banking group, soaring 10.5 percent after unveiling its first-quarter earnings results. Hana Financial shares spiked 16.9 percent. --------------------------------------------------------------- --------------------------------------------------------------- Commodities crude oil futures are plunging $4.12 to $12.82 a barrel after rising $0.44 to $16.94 a barrel last Friday. Meanwhile, after slumping $9.80 to $1,735.60 an ounce in the previous session, gold futures are rising $2.10 to $1,737.70 an ounce. On the currency front, the U.S. dollar is trading at 107.05 yen versus the 107.51 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.0849 compared to Friday?s $1.0823. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. 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