Stocks rally on drug hopes, oil legs it lower

V is for vaccine: stocks have taken a bit of good news and are running with it for better or worse, whilst figures showing the economic wreckage can be discounted, by and large.

Stocks stage mild comeback after tough day, US jobless claims in focus

Stocks suffered yesterday as bulls hopes ran up against a wall of bad economic data, another drop in oil prices and banks’ earnings reports, but have recovered some composure in early trade today.

European stocks and oil decline as investors guess recovery shape

The OBR says the UK economy could fall by 35% in the second quarter. Brutal for sure, but it also expects a very sharp bounce back. This puts it in the V-shaped recovery camp, which is an ever-decreasing circle. Charles Evans, the Chicago Fed president, said yesterday the US is in for a very sharp but hopefully short downturn. 

Dow earnings kick off, European markets pare gains, gold hits fresh high

Corporate earnings kicked off today with two Dow components first on the slate. Johnson & Johnson raised its dividend but lowered its guidance for 2020 to reflect the Covid-19 impact. The dividend was raised by 6.3% to $1.01 on adjusted earnings per share of $2.30 vs $2.01 forecast. 

European markets cautiously higher, oil weak despite OPEC deal

After rallying into the Easter weekend, European markets were bit lacklustre on Tuesday but still trading marginally higher thanks to some decent numbers out of China and the continued hope that governments are getting a grip of the crisis. US shares closed softer on Monday, with the S&P 500 down 1%, but this was after the best weekly rally for Wall Street since 1974.

Cautious tone for equities, oil rallies

HSBC is said to be mulling a move back to Hong Kong because the Bank of England asked it to not pay a dividend. Certainly, bank boards won’t be happy – their members count on those divis for paying for their second and third homes. Nor too will many savers, many of which are in Hong Kong. But any notion that the authorities will be interested in doing anything to ‘support savers’ is fanciful.

Stocks weaker as manufacturing PMIs weaken

Global stocks got off to a soggy start in April as economic damage wrought by the coronavirus was laid bare and investors felt there was not yet enough to show the virus was at or near its peak in Europe or the US. Donald Trump reflected the mood as he warned of weeks of pain still ahead, a stark change from his rather casual approach thus far. He also called for another $2tn for infrastructure spending. A bit of a gloomy start to April, like a sharp frost killing off the buds that appeared too soon. 

Oil leads global market tumble on ‘Black Monday’

The collapse of OPEC+ talks over the weekend tipped markets into chaos on Monday. Traders, already on edge due to the unfolding coronavirus epidemic, were sent fleeing to safety after Saudi Arabia slashed its crude oil prices.

Week Ahead: OPEC meets, Caixin PMI to reveal coronavirus impact