Sunday, March 15, 2020

Monday Watch

Today's Headlines
Bloomberg:
  • Treasuries Surge With Yen; Stocks Slump in Asia. Treasuries surged and U.S. equity futures tumbled at the start of another volatile week as investors responded to a rapidly escalating economic hit from the coronavirus and a massive emergency move by the Federal Reserve to ease policy. The yield on Treasuries declined more than 30 basis points. Futures on the S&P 500 Index fell about 5%, hitting limits on trading, after stocks climbed more than 9% on Wall Street Friday -- recouping most of their 10% plunge the previous day. Japanese shares fluctuated. Wild swings have become an almost daily occurrence as investors assess the efficacy of actions by authorities to contain the coronavirus, moves that have had a crippling economic impact. Australian equities were about 5% lower. The yen soared after the Fed cut its key interest rate by a full percentage point to near zero and said it will boost its bond holdings by $700 billion. It came off its highs after the Bank of Japan said it will decide on policy today, bringing forward its meeting scheduled for later this week. Oil resumed declines. Futures on the S&P 500 fell 4.8%. The gauge advanced 9.3% on Friday. Japan’s Topix index added 0.9%%. Ausralia’s S&P/ASX 200 Index dropped 5%.
Wall Street Journal:   
MarketWatch.com:
CNBC:   
Zero Hedge:        
Night Trading
  • Asian indices are -3.0% to -1.0% on average.
  • Asia Ex-Japan Investment Grade CDS Index 81.0 -3.75 basis points.
  • China Sovereign CDS 55.5 + basis points.
  • Bloomberg Emerging Markets Currency Index 61.03 +.18%.
  • Euro Stoxx 50 futures -1.9%.
  • S&P 500 futures -4.8%.
  • NASDAQ 100 futures -4.6%.

Earnings of Note
Company/Estimate

Before the Open:
  • (REV)/-1.09
After the Close:
  • (COUP)/.05
  • (HQY)/.36
Economic Releases
8:30 am EST
  • Empire Manufacturing for March is estimated to fall to 5.0 versus 12.9 in February.
4:00 pm EST
  • Net Long-Term TIC Flows for Jan.
Upcoming Splits
  • None of note
Other Potential Market Movers
  • The Japan Industrial Production report, (RAD) analyst day and the (KSS) investor day could also impact trading today.
Market Hours
Normal:
  • 9:30 am - 4:00 pm EST
BOTTOM LINE: Asian indices are mostly lower, weighed down by financial and commodity shares in the region. The Portfolio is 25% net long heading into the week.

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