ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for default Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.

Tradingview Weekly Market Wrap 2 March 2020

Share On Facebook
share on Linkedin
Print

MasterCard, United Airline Holdings, Cathay Pacific Airways, Air New Zealand, Burberry group, Pernod Ricard, Royal Philips, Protector & Gamble Co., Adidas AG, Blackmores Ltd., Finnair, Diageo, Tupperware, Apple, Microsoft, PayPal, Ab Inbev, Standard Chartered, HSBC, Tesla, Aston Martin, Toyota, and Danone are just some of the companies to warn that sales and profit may suffer as the coronavirus spreads around the world.

The situation is complicated by the fact that countries begin to publish deteriorating macroeconomic data. Manufacturing PMI in China decreased to 35.70 points in February from 51.10 points in January of 2020, much lower than markets expected. The non-manufacturing gauge also fell to its lowest ever, 29.6. By being below 50, we could start talking about contraction, but nobody is excluding the possibility that by the end of this quarter this data will increase up to 49 points. In the long-term, the China Caixin Manufacturing PMI is forecasted to be around 50.70 points in 2021 and 50.40 points in 2022, according to trading economics.

In this context, the market expects the Fed to cut interest rates. Federal Reserve Bank of St. Louis President James Bullard said last Friday “further policy rate cuts are a possibility if a global pandemic actually develops with health effects approaching the scale of ordinary influenza, but this is not the baseline case at this time… Longer-term U.S. interest rates have been driven lower by a global flight to safety, likely benefiting the U.S. economy.”

Despite that, current US GDP forecasts remain positive, Bullard reaffirmed that the Fed is “willing to react if the virus has a major impact but will want to wait and monitor events until the next meeting.”

In case it actually happens, we might see a fast trend reversal, pushing certain stocks back to their previous levels. For example, KeyBanc assigned buy ratings to Uber and Lyft. Others expect Disney and Netflix shares to grow. It is difficult to say whether it is actually going to happen, as now even defensive companies like Nestle, Danone, and Diageo cut their forecasts. However, investors should analyze whether these companies will be able to recover lost sales. On the other hand, a good part of negative news has been discounted, so we will probably not see deeper falls.

 

The previous week in the markets

 

Next week’s most important events:

“Super Tuesday” will be the most important date before the US election

China’s NBS manufacturing and non-manufacturing PMIs for February

Global Manufacturing PMI data (Feb Final)

New Zealand: Import and Export Prices (Q4)

China: Caixin Manufacturing PMI (Feb)

UK:  BOE Consumer Credit (Jan)

US: ISM Manufacturing PMI (Feb)

Australia: RBA Interest Rate Decision

EU: Inflation Rate (Feb)

New Zealand: Building Permits (Jan)

Global Services PMIs data (Feb Final)

Australia: GDP data (Q4)

China: Caixin Services PMI (Feb)

EU: Retail Sales (Jan)

BoC Interest Rate Decision

US ADP Employment Change (Feb)

US: ISM Non-manufacturing data (Feb)

US: Fed Beige Book

Crude Inventories Data

Australia:  Trade Balance (Jan)

BoE: Gov Carney Speech

BoC: Gov Poloz Speech

Canada: Employment Change (Feb)

US: Non-Farm Payrolls

China: Trade Balance

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com