Market Report 29th April 2020

Market Report 29th April 2020 981 980 Realm
U.S. Fed’s two-day policy meeting concludes today. European markets are mixed this morning awaiting the outcome.

  • On Tuesday: European stocks ended notably higher, extending gains from the previous session, as investors continued to pick up stocks amid reports about reopening of businesses in some virus hot spots, and on hopes of more stimulus from central banks.
  • U.S. stocks after failing to sustain an initial upward move, stocks showed a lack of direction over the course of the trading session. The tech-heavy Nasdaq pulled back firmly into negative territory, but the Dow and the S&P 500 spent the day bouncing back and forth across the unchanged line.
  • Asian stocks turned in a mixed performance as coronavirus worries persisted and oil extended losses amid mounting fears that storage around the world could reach full capacity soon.

Global Macro

  • The S&P CoreLogic Case-Shiller 20-city home price index in the US increased 3.5% year-on-year in February of 2020, above market expectations of a 3.2% rise. It is the biggest annual increase in house prices since December of 2018.
  • US wholesale inventories dropped 1% from a month earlier in March 2020, the largest decline since September 2009, a preliminary estimate showed. Stocks of nondurable goods slumped 2.6% (vs -0.2% in February), while durable goods inventories edged up 0.1% (vs -0.8% in February). Year-on-year, wholesale inventories were down 2.0% in March.
  • The price of Brent fell below $20 a barrel in afternoon European trading session on Tuesday, amid a collapse in demand due to the coronavirus pandemic and storage concerns. Traders will be looking at inventory numbers this week, in particular the build at Cushing, Oklahoma, the WTI delivery hub.
  • The CBI distributive trades survey’s retail sales balance dropped to -55 in April 2020, the lowest level since a record low was registered in December 2008 and well below market expectations of -40. The lockdown measures due to COVID-19 have hit retailers hard, as two fifths have shut up shop completely for now and almost a half reported temporarily laying off staff. 

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