Newsquawk

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  • Sentiment is bolstered in EU hours on expectations for stimulus measures due to the coronavirus
  • However, G7 statement reportedly does not currently include specific language calling for fresh fiscal spending or coordinated rate cuts
  • Commentary from the BoE & ECB on a virus response, ECB stands ready to take appropriate and targeted measures as necessary and commensurate with the underlying risks
  • AUD is outperforming G10 peers after the 25bp RBA cut as guidance intimates rates may remain at this...
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  • Asia traded mostly higher as the region took impetus from the rally on Wall St amid hopes of a coordinated effort to address the fallout from the coronavirus
  • G7 Finance Ministers and Central Bankers planned call to discuss the virus will take place at 1200GMT/0700EST
  • A draft statement reportedly does not currently include specific language calling for fresh fiscal spending or coordinated rate cuts
  • ECB said it stands ready to take appropriate...
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  • Sentiment was volatile in APAC hours on the abysmal Chinese PMIs; however, did recover throughout the Asia session before reverting back into negative territory in EU trade
  • BoJ said it will closely monitor future developments and offered to buy JPY 500bln of JGBs & reportedly bought a record total of JPY 101.4bln of ETF on Monday
  • EU Economic Commissioner Gentiloni says we will be assessing requests for fiscal flexibility under EU rules due to the coronavirus outbreak
  • OECD cuts global economic...
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  • Asian bourses and US equity futures began the week volatile with hefty losses which were later recouped as markets found reprieve  
  • China reported 202 additional coronavirus cases; South Korea reported 476 more cases; Italy reported 566 new cases; France noted 30 additional cases; US confirmed the first 2 coronavirus-related deaths  
  • White House officials are to discuss emergency measures to tackle virus outbreak; Italy will introduce measures valued at...
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  • Mass sell-off continues, with all bourses firmly in negative territory and the DJIA future breaching the 25k mark
  • Spot gold has failed to benefit from the continued sell-off, while JPY has been the clear beneficiary of haven flows
  • WHO Spokesman says the coronavirus outbreak is 'getting bigger' the scenario of it reaching multiple, 'if not all countries' is something that we have warned about for a while
  • Saudi Arabia is reportedly seeking a cut of 1mln BPD, according to sources cited by the FT, Saudi...
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  • Asian stocks traded lower across the board following the bloodbath on Wall Street; Nikkei 225 and Hang Seng fell deeper into correction territory
  • South Korea reported 256 more cases of new coronavirus thus far, with the total topping 2000; New Zealand, Lithuania, Nigeria and Belarus also reported their first cases
  • Saudi Arabia is reportedly seeking an output cut of 1mln BPD, according to sources, deeper than the 600k BPD proposed by the...
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  • Sentiment remains affixed to the coronavirus, with European bourses down and US equity futures currently posting losses of 1%
  • South Korea reported over 500 more cases of new coronavirus thus far, taking the total to 1766; with increases in multiple countries
  • Italian coronavirus cases may be inflated due to testing errors, WHO Official; did coincide with a mild uptick in sentiment
  • Microsoft have cut their Q3 personal computing guidance and supply chain normalisation due to the coronavirus
  • GBP...
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  • Asian equity markets traded mostly lower following a mixed Wall Street handover, US equity and DAX futures trade with heavy losses heading into the European open
  • US President Trump said we are ready to adapt and do whatever to tackle the virus outbreak, VP Pence was put in charge of the virus task force
  • First US coronavirus case of unknown origin confirmed in North California; CDC said it could be the first instance of “community spread”
  • Microsoft (MSFT) became the latest company to cut guidance due...
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  • European bourses are negative at present, but well-off session lows which saw Dax March’20 future drop 400 points at worst
  • WTI and Brent tested USD 49/bbl and USD 54/bbl on the EU morning sell-off; though selling has stabilised somewhat ahead of the US’ entrance
  • First coronavirus related deaths have been reported in France, as well as the first cases in Poland, Greece and Brazil
  • EU's Chief Trade Negotiator Hogan said he hopes to broker with the US a "mini-deal" before US increases tariffs on the...
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  • Asian equities traded mostly lower after another bleak session on Wall Street, ASX 200 lagged and Mainland China outperformed
  • South Korea reported 169 more cases of new coronavirus thus far; total number of cases topped 1000
  • Source reports noted of some discussions in the White House about whether to declare a national emergency; San Francisco Mayor has declared a state of emergency
  • Hong Kong government unveiled measures worth HKD 120bln in...
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  • Sentiment remains subdued after a brief reprieve was insufficient to flip the narrative away from risk-off
  • South Korea total cases now at 977 and a 10th coronavirus-related death reported; cases in Italy have increased as well as cases now being reported in Spain
  • WHO spokesman says they do not have plans for a 'big announcement', many countries have pandemic plans ready and some may act depending on their situation
  • US Trump Administration is sending Congress a budget request for USD 2.5bln to tackle...
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  • Asian stocks traded mixed following a detrimental session on Wall Street; KOSPI outperformed, Nikkei 225 fell 4.5% on its return from its extended weekend
  • South Korea reported 60 more cases of new coronavirus thus far, total at 893 and death toll at 9; the country is to draft supplementary budget as soon as possible
  • US Trump Administration is sending Congress a budget request for USD 2.5bln to tackle the virus outbreak, House Speaker Pelosi deemed it inadequate
  • FX markets were quiet with DXY softer,...
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  • Mass FTQ as the coronavirus spreads substantially into Italy, South Korea and Iran
  • Italy reported that the total number of cases rose to 152, with a fifth confirmed death
  • South Korea reported over 200 new case which brings the current total to 833, with seven deaths also confirmed as of February 23
  • China has postponed its parliamentary annual meeting, according to CCTV
  • European bourses, and US futures are firmly into negative territory with Italian assets amongst those worst hit
  • USD...
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  • Major Asian indices traded lower across the board amid cases spikes outside China; KOSPI lagged, Shenzhen outperformed; Japan was closed – US equity, DAX and Eurostoxx 50 futures opened with steep losses
  • In FX, DXY traded on either side of 99.500, Antipodeans were pressured, EUR was weighed on, KRW saw further weakness
  • WTI and Brent futures posted losses of over 2.5% each, spot gold eclipsed 1680/oz at the open vs. Friday’s sub-1650/oz...
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  • Sentiment remains subdued after yesterday’s sell-off; USD softens as GBP and JPY strengthen
  • China's Politburo says the turning point of the virus outbreak in China has not arrived yet, State Media
  • South Korea has reported 48 more cases of novel coronavirus, total rises to 204, according to Yonhap
  • Libyan Commander Haftar has told Russian press he is ready for a Libyan ceasefire if some conditions are met
  • Saudi Air Defence has intercepted and destroyed several ballistic missiles fired at the...
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  • Asian equities traded with downside bias after a weak handover from Wall Street, Hang Seng and KOSPI lagged
  • China reported an additional 889 (Prev. 394) coronavirus cases and 118 (Prev. 114) additional deaths as of February 20
  • South Korea’s virus case count rose to 156; two evacuees from the Diamond Princess cruise have tested positive for coronavirus since landing
  • Chinese Commerce Ministry is speeding up the study of new measures to provide further support for companies
  • In FX, DXY was flat,...
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  • USD remains king as 100 comes into focus for the DXY as it outperforms G10 peers, particularly JPY/AUD/NZD
  • European bourses have traded largely directionless for the session, as focus remains on geopolitics/virus headline risk
  • Concerns mount over the spread of coronavirus outside of China, namely Japan and South Korea
  • Chinese PBoC LPR Rate 1yr 4.05% vs Exp. 4.05% (Prev. 4.15%); 5yr 4.75% (Prev. 4.80%)
  • Turkey and Russia are in talks regarding joint patrols around Idlib, Syria
  • Looking...
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  • European bourses are modestly firmer, with gains roughly in-line with their APAC peers
  • Turkish President Erdogan says he is presenting his final warning to the Syrian government regarding Idlib and says that a military operation is a "matter of time”
  • GBP was briefly bolstered on strong UK CPI, with the DXY modestly firmer overall largely on a soft JPY
  • Boeing are to inspect undelivered 737 Max craft for foreign objects after debris found in undelivered craft
  • Looking ahead, highlights include...
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  • China’s Mainland reported total cases 74185 vs. Prev. 72436, total deaths 2004 vs. Prev. 1789
  • Asian equities traded with cautious gains; Nikkei 225 outperformed, Mainland China was supported by stimulus hopes
  • In FX, DXY remained near recent highs, USD/JPY reclaimed 110.00, EUR and GBP traded sideways
  • Yuan saw weakness as PBoC set USD/CNY mid-point above 7.000, the weakest fix since Dec 25th, 2019
  • Libya’s government...
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  • European bourses are softer this morning in-line with the knock to risk-tone post AAPL revenue warning
  • Apple (AAPL) issued a revenue warning in which it does not expect to meet revenue guidance for the March quarter citing the coronavirus outbreak
  • China's President Xi says that China is still able to meet the 2020 economic targets, in-spite of the impact of the coronavirus
  • EZ Finance Minister, including German Finance Minister Scholz, have adopted a recommendation for a fiscal boost in the event of...
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  • China reported an additional 1868 coronavirus cases and 98 additional deaths, 1701 patients were discharged
  • Apple (AAPL) issued a profit warning and does not expect to meet revenue guidance for Q1 amid the coronavirus outbreak
  • RBA Minutes largely echoed the statement but also highlighted that Coronavirus is a “material” risk to the Chinese economy and hence Australia
  • Asian equities traded lower across the board whilst US equity futures gapped lower at the open
  • In FX, DXY and JPY remained...
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  • APAC stocks traded mixed: China was buoyed by the PBoC, Nikkei 225 lagged on dismal domestic GDP
  • Total Mainland coronavirus cases are now at 70548 and death toll at 1770, whilst 1425 were discharged from hospital on Sunday
  • China cuts its 1yr MLF by 10bps to 3.15%, 1ppts below the 1yr LPR which is to be announced on Thursday
  • The Trump Administration said it would increase tariffs on EU aircrafts to 15% from 10% beginning March...
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  • European bourses are little changed in largely directionless trade
  • Crude futures are bolstered somewhat heading into a long US weekend
  • G10 FX complex is flat, with the DXY little changed as a result
  • EZ GDP printed as expected after flat QQ German numbers, while EZ employment surprised to the upside
  • Looking ahead, highlights include US Import & Export Prices, Retail Sales, Industrial Production and Manufacturing Output, Business Inventories, University of Michigan Sentiment (Prelim),...
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  • Asian equity markets were mostly higher following the near recovery seen on Wall St
  • China's Hubei province reported 4823 new coronavirus cases and 116 additional deaths as of February 13th
  • China is reportedly considering postponing its annual parliamentary meeting (scheduled for March 5th)
  • US filed a superseding indictment on Huawei which includes a new racketeering conspiracy count and accused the company of trade theft
  • NY Fed Cut O/N Repo Operations limit to USD 100bln (prev. 120bln); cuts...
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  • China's Hubei province reported 14840 new coronavirus cases under revised standards – the methodology has not changed outside Hubei
  • European stocks trade with losses across the board [Eurostoxx 50 -1.4%], FTSE 100 underperforms
  • Risk aversion sees safe-haven FX bid, DXY is softer below 99.000 and energy futures decline
  • Looking ahead, highlights include US CPI & Initial Jobless Claims, Banxico Rate Decision, Fed’s Williams, ECB’s Lane...
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