Market will gradually rebound back from current level low after consolidation
DJIA & S&P500 had stubbornly sustain above 50% retrenchment
Bursa & SC had agreed to further suspension of IDS until end of June 2020 in order to stabilize market volatility
House Passes $3 Trillion Democratic Stimulus With No Path to Law
May 16, 2020, 9:27 AM GMT+8
The House passed a $3 trillion Democratic economic stimulus bill Friday that Republicans and President Donald Trump have already rejected and isn’t likely to trigger bipartisan negotiations any time soon.
The measure, passed 208-199, would give cash-strapped states and local governments more than $1 trillion while providing most Americans with a new round of $1,200 checks. House Speaker Nancy Pelosi said it should be the basis of talks with the GOP-controlled Senate and White House, which have called for a “pause” to allow earlier coronavirus recovery spending to work.
“A horrible virus has made a vicious attack on the lives and livelihoods of the American people, and indeed on the life of our democracy,” Pelosi said on the House floor before the vote. “It’s always interesting to see how much patience some people have with the pain and suffering of other people.”
Pelosi this week has repeatedly invoked Federal Reserve Chairman Jerome Powell, who has said Congress will have to inject more fiscal stimulus into the economy to prevent a prolonged recession. The U.S. has more than 1.4 million coronavirus cases, and more than 86,000 have died.
But Republicans also cite the Fed chief, with Senate Majority Leader Mitch McConnell saying Powell hasn’t explicitly said how quickly Congress must act. He and other Republicans have dismissed the House Democrats’ bill as a liberal wish list and are using it to attack Democrats, whom polls give an increasing chance of holding the House and taking the Senate in November’s election.
“This is much more about political messaging than effective legislating,” Republican Representative Tom Cole of Oklahoma said.
Powell Warns of Broad Virus Danger, Bats Down Negative Rates
GOP members said some provisions don’t belong in a virus bill, such as reductions in immigration enforcement, providing stimulus checks to undocumented immigrants, money for the troubled U.S. Postal Service and a national requirement to hold elections by mail.
Trump and Republican congressional leaders have acknowledged, however, that some sort of further economic stimulus will likely be necessary as the economy continues to shed jobs. The number of people filing for unemployment benefits since March now exceeds 36 million.
“Phase four is going to happen but it’s going to happen in a much better way for the American people,” Trump old reporters Friday. He said he holds leverage over Democrats in any future talks.
“We have all the cards because we have the cards of the American people. I know what they want,” the president said.
House Republican leader Kevin McCarthy said he anticipates another bill eventually.
Oil Watchers Applaud Swift Delivery of OPEC+ Supply Cuts
May 16, 2020, 2:00 PM GMT+8 Updated on May 16, 2020, 10:35 PM GMT+8
~ Implementation of 10-million barrel cut deeper than expected
~ Traders, tanker-tracking, refiners point to strong compliance
OPEC+ is responding to the oil market’s collapse with an urgency never seen before.
The alliance’s program of production cutbacks this month is well on the way to trimming 9.7 million barrels of daily crude output -- roughly 10% of global supplies, according to tanker-tracking data, interviews with physical crude traders and refiners, and assessments by consultants. And that’s just in the first two weeks of the agreement.
“The actual production cuts are deeper and more spectacular than any reasonable person would have thought a week ago,” said Ed Morse, head of commodities research at Citigroup Inc.
Despite skepticism over the efficacy of the measures unveiled in mid-April by Saudi Arabia, Russia and their partners, compared to the immense hit to demand, the impact has been substantial. Oil prices have recovered by 60% in the past three weeks, as a pick-up in fuel use is complemented by the supply cuts.
Most likely this few days will focus more on energy sector for rotation play.....since WTI withstand above $30++ & Brent oil withstand above $33++..........
Singapore's exports grow 9.7% in April (18 May 2020 08:30AM)
SINGAPORE: Singapore's non-oil domestic exports (NODX) grew 9.7 per cent year-on-year in April, a drop from the 17.6 per cent growth that was seen in March, according to official data release on Monday (May 18).
April's expansion was largely due to pharmaceuticals, which grew from a low base a year ago, while electronics declined.
On a month-on-month seasonally adjusted basis, NODX fell 5.8 per cent in April, a reverse from the previous month's 12.8 per cent expansion.
Total trade decreased over the year in April - a decline of 12.8 per cent, a further drop from the 0.2 per cent fall in March.
Total exports fell 12.7 per cent, similar to the 13 per cent decline in imports.
Shipment to Singapore's top 10 markets grew in April, though exports to China, Hong Kong, Malaysia, Indonesia and Thailand declined; growth was mainly due to the US, the European Union and Japan.
Stock futures extend gains after Moderna reports positive vaccine data, Dow futures up 650 points
(PUBLISHED SUN, MAY 17 20206:08 PM EDTUPDATED MOMENTS AGO)
Futures contracts tied to the major U.S. stock indexes rose sharply Monday, rebounding from losses last week, as news from a Moderna trial stoked optimism about a potential coronavirus vaccine.
Dow Jones Industrial Average futures jumped 650 points, or 2.8%. S&P 500 futures added 2.6%. Nasdaq-100 futures were up 2%.
Moderna shares rallied more than 26% after the company reported “positive” phase one results for a potential coronavirus vaccine. The company said that after two doses all 45 trial participants had developed coronavirus antibodies.
Shares of companies that would benefit from the economy reopening also rose in the premarket. Disney traded nearly 3% higher while MGM Resorts traded 6% higher. Cruise operator Carnival gained 7.8%. Deltas and United Airlines both rose more than 7% along with American.
Comments from the Federal Reserve chief also added to the bullish sentiment.
Federal Reserve Chairman Jerome Powell said to CBS’ “60 Minutes” that “there’s a lot more we can do” to help the economy. “We’ve done what we can as we go. But I will say that we’re not out of ammunition by a long shot. No, there’s really no limit to what we can do with these lending programs that we have.”
The central bank leader also said he’s “highly confident” the U.S. economy will claw its way back from the current pullback, but warned that it may not fully recover until a Covid-19 vaccine is complete.
“Don’t fight the Fed,” wrote FundStrat’s Tom Lee to clients after the interview.
The Nasdaq Composite and S&P 500 fell 1.1% and 2.2%, respectively, last week with the latter notching its worst week since March. The Dow industrials finished the week down 2.65% for its third negative week in four and its worst week since April 3.
Keyman ,1448 sure bo ? Now only 1227,nanti tak jadi tak mahu sembunyi ye... Pls give a more balance view, what r the downside factors , tht pull index down, u r the expert le! I memang tak tahu ...ingin dpt tahu yg benar benar pasti tahu... ( jika tak tahu juga leave a caveat maa)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by Keyman188 > 2020-04-28 14:21 | Report Abuse
Market will gradually rebound back from current level low after consolidation DJIA & S&P500 had stubbornly sustain above 50% retrenchment Bursa & SC had agreed to further suspension of IDS until end of June 2020 in order to stabilize market volatility