Written by Gary
First the good news: futures have so far failed to drop or surge by the 5% limit. SPY -3.5% the market’s unprecedented volatility has been just a bit more contained.
Here is the current market situation from CNN Money | |
 | European markets are mixed today. The DAX is up 0.87% while the FTSE 100 gains 0.47%. The CAC 40 is off 0.53%. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
 | UAE joins Saudi in opening oil taps as row with Russia hits crude pricesThe United Arab Emirates joined Saudi Arabia on Wednesday in promising to raise oil output to a record high in April, as the two Gulf Arab oil producers in OPEC took a united stand in a standoff with Russia that has hammered global crude prices. |
| S&P 500 bull market will soon end: Goldman SachsGoldman Sachs said on Wednesday the S&P 500 bull market, the longest on record, is likely to end soon, forecasting a 28% slump from its February peak as the fast-spreading coronavirus is seen taking a toll on corporate profits. |
| Stocks gain after emergency BoE cut adds to stimulus hopesEuropean stocks rose on Wednesday after the Bank of England joined other central banks in cutting interest rates, raising hopes for more co-ordinated monetary and fiscal stimulus to counter the economic shock from the coronavirus outbreak. |
| Britain fires with both barrels: emergency rate cut and budget boostThe Bank of England slashed interest rates by half a percentage point on Wednesday and announced support for bank lending just hours before the unveiling of a budget splurge designed to stave off a recession triggered by the coronavirus outbreak. |
| Telefonica, TIM plan joint bid for Oi’s mobile business in Brazil(This March 10 story corrects to show Telefonica Brasil and TIM plan joint bid for Oi’s mobile business, not whole company) |
| Oil falls $1 as price war escalates with Saudi plan for higher output capacityOil prices fell on Wednesday, giving up earlier gains, pressured by Saudi Arabia’s plans to boost oil production capacity for the first time in more than a decade and weakened demand due to the spread of the coronavirus. |
| Adidas sees $1.1 billion coronavirus hit to China sales, Puma warns on profitGerman sportswear makers Adidas and Puma warned on Wednesday of a major decline in sales in China due to the coronavirus and said while there were early signs of improvement there the impact had spread to other markets. |
| One person infected with coronavirus at Equinor’s offshore oil projectA worker at Equinor’s Martin Linge offshore oil and gas development has been diagnosed with the coronavirus and is being held in isolation, the Norwegian energy firm said on Wednesday. |
| BoE allows banks to tap capital cushion during coronavirusThe Bank of England told banks on Wednesday they can tap one of their capital buffers to maintain lending during the coronavirus epidemic, but warned they must not use the cash for bumping up bonuses or dividends. |
| “Fool Me Once…” – No, This Drop & Pop Is Not A Q4 2018 Replay“Fool Me Once…” – No, This Drop & Pop Is Not A Q4 2018 Replay Authored by Sven Henrich via NorthmanTrader.com, I sense there is a tendency right now to say that this correction is just similar to the Q4 2018 correction. And it’s true on the surface you can make that argument. 20% decline on $SPX, oversold readings similar on several indicators and all that could make the case for business as usual. After all the Fed has cut and will cut some more and stimulus bazookas will get launched all over the place. I get it. But I want to add some nuance to all this and that is to state clearly: This is not anything like the Q4 2018 correction. It’s worse, much worse and it’s left utter destruction in its wake and I want to highlight some of this so everyone can get get an appreciation for what just happened and why we may not expect a magic recovery similar following December 2018. |
| Mortgage Refis Explode Higher As Rates Hit Record LowsMortgage Refis Explode Higher As Rates Hit Record Lows Mortgage applications in the US exploded by 55.4% last week as rates collapsed to record lows amid global growth fears and monetary policy response expectations. |
| Merkel “Open” To Scrapping Germany’s “Zero-Deficit Rule”Merkel “Open” To Scrapping Germany’s “Zero-Deficit Rule” This should get the market’s attention. Seemingly answering Christine Lagarde’s call, European media organizations are reporting that Chancellor Merkel has signaled that she is ‘open’ to suspending Germany’s ‘zero-deficit rule’ – better known as the ‘debt break’ – to bolster the fight against the coronavirus. A few days ago, Germany announced the first coronavirus death on German soil, and a German traveler also reportedly succumbed to the virus in Egypt. This isn’t the first time that Merkel has hinted at fiscal stimulus in recent months, and her finance minister has said that scrapping the debt break would be necessary to avert a European recession. Now, the virus has seemingly given Germany and other spending-averse European nations the excuse politicians needed to open the taps. After all, interest rates are so low, people are practically being paid to borrow.
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| Market Rollercoaster Returns: Futures Crash As Stimulus Hope FadeMarket Rollercoaster Returns: Futures Crash As Stimulus Hope Fade First the good news: after S&P futures crashed limit down on Monday, then rebounded limit up on Tuesday, on Wednesday the market’s unprecedented volatility has been just a bit more contained, and futures have so far failed to drop or surge by the 5% limit. Now the bad news: after yesterday’s tremendous surge (which in turn followed Monday’s near record drop), after Trump promised late on Monday that he would unveil a “major” stimulus package on Tuesday, only to be a no-show yesterday and failing to outline any tangible steps, the futures rollercoaster is back, with the Emini down sharply overnight, sliding by over 2.6% and cutting yesterday’s gains in half. |
| No minimum balance needed for SBI savings bank accountsNo minimum balance needed for SBI savings bank accountsSBI has also rationalised interest rate on savings account to a flat 3% for all savings bank account holders. |
| Tycoons may need a Plan B to Bear the mktTycoons may need a Plan B to Bear the mktThe S&P BSE Sensex Index has declined 15% since setting a record high in January. |
| ICICI, HDFC white knights to YES’ rescue?ICICI, HDFC white knights to YES’ rescue?The move, SBI feels, would prevent a flight of funds and lead to an upgrade in credit rating. |
| Metals Stocks: Gold pops higher, poised to post fourth gain in 5 sessionsGold futures resume upward trend on Wednesday, as U.S. stocks appeared set to take a fresh leg lower with investors awaiting details on a U.S. fiscal stimulus plan from lawmakers to help limit the expected economic pain from the COVID-19 epidemic. |
| Economic Report: Higher rents, grocery prices push up cost of living in February, CPI shows, but inflation still low overallHigher rents and grocery prices pushed up the cost of living slightly in February, but inflation was mild overall and there was no sign yet of any influence from the coronavirus outbreak. The consumer price index edged up 0.1%. |
| Eerie silence in Rome as the coronavirus lockdown takes effectFor the first time since the virus hit Italy, the capital city is scared. One Roman paints a picture of daily life in the shadow of the threat. |
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