Global Fundamental Analysis 14/04/2020

Australian Market

Australian sharemarkets were closed for the Easter Monday public holiday.

US Market

The S&P 500 fell, paring some of its gains after its best weekly performance since 1974, as investors looked ahead to the start of corporate earnings season.
U.S. stocks have risen in recent days on optimism that the coronavirus containment measures were working and the economic downturn stemming from the pandemic would be relatively short lived. Caution emerged Monday as some investors grew wary that hard data and quarterly earnings could reveal the extent to which the coronavirus is crimping profits.

This week investors will get insights into how the American financial sector is withstanding the turmoil in the economy when major U.S. banks including JPMorgan Chase,
Bank of America and Goldman Sachs Group report. Some blue-chip American companies including Johnson & Johnson are also scheduled to report this week, offering a first look at the impact of social-distancing measures on corporate profits.

The broad stock market index shed about 1% to start the week. The Dow Jones Industrial Average fell almost 500 points before paring some of those losses to fall 326 points, or 1.4% as of the 4 p.m. close of trading in New York. The Nasdaq Composite fell before bouncing into positive territory toward the end of the day, lifted by shares of Amazon.com. The tech-heavy index ended the day up 0.5%.

Commodities

Gold futures climbed to mark another finish at their highest price in more than seven years, finding support as investors eyed losses in the stock market and weighed
expectations for further moves by central banks and fiscal policy makers to boost the global economy.

Gold for June delivery on Comex climbed by $8.60, or 0.5%, to settle at $1,761.40 an ounce. That was the highest finish for a most-active contract since Oct. 11, 2012,
according to Dow Jones Market Data. The metal had also marked a more than seven-year high on Thursday, even as stocks that day scored their biggest weekly advance since 1974. U.S. financial markets were closed Friday for the Good Friday holiday.

Oil Futures

U.S. crude-oil pared an earlier advance and closed lower, a sign of skepticism that global supply cuts will be enough to offset plunging fuel demand.
Crude futures ended the day down 1.5% at $22.41 a barrel on the New York Mercantile Exchange in volatile trading. While they have rebounded from a recent 18-year low, prices have still crashed 63% this year, with the coronavirus pandemic stalling global travel and crunching fuel consumption around the world. Brent crude, the global gauge of oil prices, ended the day up 0.8% at $31.74 a barrel on the Intercontinental Exchange.
The day’s swings came after 23 countries led by Saudi Arabia, Russia and the U.S. agreed over the weekend to withhold 9.7 million barrels a day of oil from global markets.

Forex

The U.S. dollar strengthened 0.2% against the euro but weakened 0.4% against the yen. The euro weakened against other major currencies today.

European Markets

European sharemarkets were closed for the Easter Monday public holiday.

Asian Markets

 Investors were focusing on any new developments on Japan’s coronavirus-related movement restrictions and possible impact on corporate earnings.

SoftBank Group said it expected its Vision Fund to log an investment loss of $16.6 billion in the fiscal year just ended, a setback for the world’s biggest technology fund.