14Apr2020 Open-Market Commentary: Wall Street Stocks Gain On China Trade Data, Easing Pandemic Worries, DOW Opened Higher +442 Points, WTI Slips To 21.40, US Dollar Down To 99.01, Gold Higher At 1728

Here is the current market situation from CNN Money

European markets are mixed today. The DAX is up 1.00% while the CAC 40 gains 0.17%. The FTSE 100 is off 0.83%.

Alphabet soup: How will post-virus economic recovery shape up?

(This story had been refiled to add missing words in paragraph 16 of story first published April 9.)

Global stocks gain on China trade data, easing pandemic worries

World stocks gained on Tuesday after Chinese trade data came in better than expected and as some countries tried to restart their economies by partly lifting restrictions aimed at containing the coronavirus pandemic.

China data lifts futures as JPMorgan, J&J kick off earnings

U.S. stock index futures gained 1% on Tuesday on better-than-expected trade data from China and signs some economies were preparing to ease lockdowns, even as the first batch of earnings reports underlined the hit from the coronavirus outbreak.

Dash for cash as most investors expect drawn-out recovery: BofA survey

Investors have been hoarding cash at a rate not seen since the immediate aftermath of the 9/11 attacks of 2001, BofA’s April fund manager survey showed, as the coronavirus roiled global financial markets.

Renault quits its main China venture after weak sales

French automaker Renault SA is ditching its main passenger car business in China following poor sales at the loss-making venture with Dongfeng Motor Group .

JPMorgan profit plunges on coronavirus loan provisions

JPMorgan Chase & Co’s quarterly profit slumped by more than two-thirds as the coronavirus pandemic and record low oil prices forced the largest U.S. bank to boost reserves to protect it from a wave of potential loan defaults.

Johnson & Johnson beats profit estimates but cuts forecast on coronavirus uncertainty

Johnson & Johnson on Tuesday beat analysts’ estimates for first-quarter profit on higher sales of its cancer drugs and consumer products including Tylenol, while slashing its full-year forecast due to the coronavirus shutdowns.

Britain’s Next re-opens online before maxing out daily limit

British clothing retailer Next hit a self-imposed daily limit within hours of re-opening its online business on Tuesday, indicating consumer demand during the coronavirus lockdown.

Barclays halts new job cuts during coronavirus crisis: memo

Barclays has halted new job cuts while the coronavirus crisis is ongoing, the bank said in an internal memo seen by Reuters on Tuesday.

“Get Pragmatic” – Bill Blain Warns Of “Seriously Dark Dystopian” Future

“Get Pragmatic” – Bill Blain Warns Of “Seriously Dark Dystopian” Future

Authored by Bill Blain via MorningPorridge.com,

œIf you try to take a cat apart to see how it works, the first thing you will have is a non-working cat.

On Thursday I posted a note on the Fed doing exactly what I predicted ” a programme to buy high-yield junk. A sniffy Wall Street trader called me an imbecile ” which is quite a big word for a Wall St trader. He told me the Fed is not buying junk bonds, just ETFs related to junk and levered finance. He yelled at me to get it right. Really..? Go figure. Same difference. Its detail. I confidently predict the Central Banks will be buying equity ETFs soon enough ” which is buying equity. End of.Â

*Â *Â *

After a glorious 4 days Easter staycation over the best April weekend in history, do I feel refreshed enough to face another week in markets? As analysts simultaneously forecast global depression and record stock markets by year end, are we are into the realms of financial insanity? I have some seriously dark dystopian forebodings about where this could go…

Get over it ¦ Smile.

But before we talk ourselves into giving up.. REMEMBER – things are never as bad as you fear they might be. (It doesn’t mean they are looking particularly good either.) If you are prepared for the worst, then you are less likely to be disappointed if it happens ¦ Â

If you can’t make your mind up about markets, you are in goo …

Oil Tumbles After IMF Slashes Global Growth Forecast

Oil Tumbles After IMF Slashes Global Growth Forecast

As if oil prices needed any more help on their downward spiral towards the teens, The IMF just slashed global growth to the worst since the ’30s.

œThis crisis is like no other, Â Gita Gopinath, the IMF’s chief economist, wrote in a foreword to its semi-annual report.

œLike in a war or a political crisis, there is continued severe uncertainty about the duration and intensity of the shock.

As Bloomberg notes, The International Monetary Fund predicted the œGreat Lockdown recession would be the steepest in almost a century and warned the world economy’s contraction and recovery would be worse than anticipated if the coronavirus lingers or returns.

In its first World Economic Outlook report since the spread of the coronavirus and subsequent freezing of major economies, the IMF estimated on Tuesday that global gross domestic product will shrink 3% this year.

That compares to a January projection of 3.3% expansion and would likely mark the deepest dive since the Great Depression. It would also dwarf the 0.1% contraction of 2009 amid the financial crisis.

Of course, there is the hockey-stick recovery with IMF anticipating growth of 5.8% next year, which would be the strongest in records dating back to 1980, it cautioned risks lay to the downside.

US Import, Export Prices Plummet In March As COVID Deflationary Drag Strikes

US Import, Export Prices Plummet In March As COVID Deflationary Drag Strikes

In what is perhaps not totally surprising, the deflationary winds of a global lockdown washed ashore in the US with a collapse in both US import and export prices (though both were modestly better than expected).

Import Prices fell 2.3% MoM (better than the -3.2% exp) and year-over-year plunged 4.1% (again better than 5.0% drop expected)

Export Prices fell 1.9% MoM (better than the -2.3% exp) and year-over-year tumbled 3.6%.

Wells Fargo Reports 1 Cent Profit After Loan Loss Provision Soars To $4 Billion

Wells Fargo Reports 1 Cent Profit After Loan Loss Provision Soars To $4 Billion

With JPM starting Q1 earnings season by taking a whopping $6.8 billion in covid-19 loan loss reserves in Q1, it appears that the bank is bracing for even more pain in Q2, even if the number was enough to allow JPM to report a profit in Q1 (albeit down some 69%, or the most since the financial crisis) instead of an outright loss. Moments after JPM, Wells Fargo followed suit, when it reported a surge in credit costs in the first quarter, setting aside $4 billion in loan-loss provisions in the first quarter, almost five times what it allocated a year ago and the most in a decade. Amusingly, despite this surge in provisions, Wells too reported an EPS profit, but the smallest possible of just 1 cent (!), down from $1.20 a year ago.

For India, lockdown 2.0 may come with a $234 billion price tag

For India, lockdown 2.0 may come with a $234 billion price tagLockdown extension till May 3 will inflict an economic loss of USD 234.4 billion, Barclays has said.

India Inc stuck between covid & a hard place

India Inc stuck between covid & a hard placeInvocation of offshore guarantees, pressure from overseas lenders are some issues concerning India Inc.

Goa may soon become coronavirus-free

Goa may soon become coronavirus-freeOut of the total two districts in the state, South Goa has already been declared a “green zone”.

March 2020 Import Year-over-Year Inflation Declined To -4.1%

Written by Steven Hansen

Year-over-year import price indices inflation slowed and are now deep in contraction.

NewsWatch: Why the stock market is nowhere near a bottom and investors can expect a massive hit

S&P 500 could tumble to a range between 1,275 and 1,710 before a bull market resumes, writes Cam Hui.

Deep Dive: Three stocks to buy at ‘the most attractive entry point’ since 2009 from an index-beating hedge-fund manager

Dev Kantesaria of Valley Forge Capital Management says investors need to own ‘the highest-quality businesses on the planet.’

IMF isn’t convinced the global economy can shake the ‘Great Lockdown’ by 2021

The International Monetary Fund forecast that the global economy would recover partially next year from the œGreat Lockdown of 2020, but the economists at the international financial institution didn’t sound entirely convinced.