Global Markets See Risk Appetite Ease
Coronavirus uncertainties are sliding into some earnings calls as Apple forecasts a pullback in its Q2 guidance due to the outbreak. This week's events include Fed minutes and the G20 gathering of finance ministers and central bankers in Saudi Arabia.
Stocks and Bonds: Tug-of-war with Risk-Reward
U.S. stocks tend to see a higher risk-reward profile during periods of exponential growth while bonds are known to have an inverse risk-reward relationship. In the bond market, the recent advance in Treasurys saw parts of the yield curve invert. The traditional American recession indicator may actually reflect global growth concerns.
Virus Outbreak to Destroy Oil Demand
The International Energy Agency expects global oil demand to contract for the first time in a decade during Q1 2020. The coronavirus outbreak is expected to ease world oil demand by 1.1 million b/d in Q1 with China expected to ease its oil consumption growth.
Wall Street Rally Tops Overseas Markets
The major U.S. stock benchmarks are hitting record highs and shrugging off uncertainty. Bets on diversifying overseas are not paying off as well as the domestic markets even amid elevated valuations.
US Jobs Growth Accelerates
Nonfarm payrolls accelerated as 2020 got underway but the unemployment rate ticked higher in January. The better-than-expected jobs report boosts sentiment as uncertainty over the coronavirus outbreak hangs over the global market.
China Slashes Tariffs on US Goods
China plans to reduce tariffs on $75 billion worth of US products, beginning February 14. Economic impacts of the coronavirus outbreak are adding some uncertainty to overall sentiment as China delays the release of trade data.
Markets Recover from Coronavirus Selloff
Coronavirus fears sparked quite a selloff, but now markets seem to be recovering. The S&P 500 had its best day in a long time closing up 1.5% and the tech-heavy NASDAQ hit a new record high ahead of the State of the Union. Also, according to economic data from ADP and Moody's Analytics, private payrolls rose by 291,000 in January.
Black Gold Takes a Hit
Oil prices staged a partial recovery as OPEC+ and China consider how the coronavirus will affect oil demand. As February kicked off WTI fell below $50/bbl for the first time in over a year on concerns of weaker fuel consumption.
Implications of the Everything Bubble
Scott Minerd, Chairman of Investments and Global CIO, joined Bloomberg TV on FOMC Day to discuss the market effects of the Fed’s T-bill buying. Read Global CIO Outlook: Global Central Banks Fueling a Ponzi Market
Yield Curve Inverts on Growth Worries
The yield on the 10-year Treasury note briefly fell below the 3-month bill. This was the first time since October that the phenomenon flashed and raised recession concerns.
Fed & Football: Holding the Line
The Fed and football are on the minds of many Americans as Super Bowl LIV draws closer. The coronavirus outbreak in China may pose a risk to the global economy with policymakers weighing the widening fallout.
Super Bowl Sunday to Boost Spending
Super Bowl LIV Sunday is expected to boost consumer spending on food. As the San Francisco 49ers get ready to face off against the Kansas City Chiefs, restaurants and food distributors are prepping for one of the biggest sales days of the year.