Market Report 28th April 2020

Market Report 28th April 2020 981 980 Realm
U.K. and European stocks inch higher this morning.
  • On Monday European stocks closed mostly higher amid news more countries in the continent are relaxing lockdown restrictions, and on hopes the central banks will announce additional stimulus to revive the economies.
  • U.S. stocks finished the day in the green, riding a wave of optimism surrounding the possibility of reopening the US economy amid a slowdown in the spread of the coronavirus. States, including Alaska, Georgia, South Carolina, Tennessee, and Texas are starting to allow restaurants and other businesses to resume operations
  • Asian stocks  rose 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.

Global Macro

  • U.S. banks began another chaotic dash to grab $310 billion in fresh small business aid released by the government, after it changed some of the rules of the first-come-first-served program at the 11th hour. The Small Business Administration (SBA) reopened its Paycheck Protection Program at 10:30 a.m. EDT (1430 GMT), allowing lenders to resume processing applications from businesses hurt by the novel coronavirus shutdown.
  • WTI for June delivery plunged almost 30% to $12 a barrel, before paring some losses to around $13 a barrel, on fears that worldwide storage will soon fill as the coronavirus crisis continues to disrupt global demand.
  • The Bank of Japan during its April meeting removed a limitation on buying government bonds so that 10-year yields will remain at 0%, and ramped up its purchases of corporate debt to JPY 20 trillion from around JPY 7 trillion, joining global central banks in their unprecedented expansion of monetary stimulus to mitigate the economic fallout from the COVID19 pandemic. In addition, the central bank determined to buy ETFs and J-REITs so that their amounts outstanding will rise at an annual pace of JPY 12 trillion and about JPY 180 billion, respectively. Meanwhile, policymakers kept its key short-term interest rate unchanged at -0.1%.

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