Posted by Keyman188 > 2020-06-28 21:39 | Report Abuse

Dow drops 700 points to end the week as coronavirus spike raises concern over the economy

Published Thu, Jun 25 20206:01 PM EDTUpdated Fri, Jun 26 20204:27 PM EDT

Stocks fell sharply on Friday after Texas rolled back some of its reopening measures, raising concern about the latest spike in coronavirus cases and its impact on the economy.

The Dow Jones Industrial Average closed 730.05 points lower, or 2.8%, at 25,015.55. The S&P 500 slid 2.4% to 3,009.05 and the Nasdaq Composite dropped 2.6% to close at 9,757.22.

Those losses led to the major averages’ second weekly drop in three weeks. The Dow and S&P 500 fell 3.3% and 2.9%, respectively, for the week and the Nasdaq lost 1.9% in that time period.

“Coronavirus cases are spiking and reopenings are being delayed, which at a minimum will impact earnings,” said Tom Essaye, founder of The Sevens Report. “The resurgence in coronavirus cases is raising concerns that the rebound may be short-lived as voluntary or potentially more government mandated economic shutdowns are becoming increasingly likely.”

Texas ordered all bars and establishments that receive more than 51% of their gross receipts from alcoholic beverages to shut down operations. Restaurants, meanwhile, must limit on-premise dining to less than 50% indoor capacity. “At this time, it is clear that the rise in cases is largely driven by certain types of activities, including Texans congregating in bars,” Texas Gov. Greg Abbott said.

Florida also announced it would suspend “on premises consumption” of alcohol at bars in the state after reporting a surge of nearly 9,000 new virus cases. In Arizona, the number of cases jumped by 5.4%, topping a seven-day average of 2.9%. At a nationwide level, the daily average number of confirmed coronavirus cases is now more than 33,000.

Shares of companies that would benefit from an economic reopening tumbled. United Airlines, American and Delta all slid more than 3%. Cruise operator Norwegian Cruise line dropped 5%.

Jon Hill, rates strategist at BMO, said virus fears are making investors rethink positions ahead of the weekend, which is similar to the trading action seen in March and April. This is favorable for bonds and negative for stocks, as investors worry the economy may not rebound as sharply as expected. “It’s very possible some of the optimism we saw in the datas could pull back hard in July and August.”

The U.S. 5-year Treasury yield dropped to a record low of 0.29%. The 3-year rate also slid to an all-time low of 0.17%. Yields move inversely to prices.

Banks under pressure after Fed stress test

The Federal Reserve’s annual stress test of the major banks showed some banks could get close to minimum capital levels in scenarios related to the coronavirus pandemic.

Because of this, banks must suspend share repurchase programs and cap dividend payments at current levels for the third quarter. Wells Fargo and Capital One may be forced to cut their dividends, according to a Morgan Stanley analyst.

“While I expect banks will continue to manage their capital actions and liquidity risk prudently, and in support of the real economy, there is material uncertainty about the trajectory for the economic recovery,” Fed Vice Chair Randall Quarles said in a statement.

The announcement sent some bank shares lower on Friday. Bank of America and JPMorgan Chase both fell more than 5%. Wells Fargo slid 7.4% and Goldman Sachs fell 8.7%.

Meanwhile, Nike shares slid 7.6% on the back of a surprising quarterly loss for the apparel giant. The company reported a loss of 51 cents per share and revenue of $6.31 billion for its fiscal fourth quarter. Nike’s quarterly revenue reflected a drop of 38% on a year-over-year basis.

The losses on Friday came despite a record rise in consumer spending in May. The Commerce Department reported Friday that spending increased 8.2% last month, a positive sign for the U.S. economy amid a growing number of negative coronavirus headlines.

The government’s report on how much Americans spent on goods and services in May was the largest one-month gain dating back to records beginning in 1959. Consumer spending represents more than two-thirds of economic demand in the U.S.

Correction: This story has been updated to reflect the S&P 500 dropped 2.4% on Friday.


##https://www.cnbc.com/2020/06/25/stock-market-futures-open-to-close-news.html

Posted by Keyman188 > 2020-06-28 21:41 | Report Abuse

IMF warns disconnect in financial markets risks a correction in asset prices

PUBLISHED THU, JUN 25 20208:31 AM EDTUPDATED THU, JUN 25 202011:12 AM EDT

~ A correction is defined as a 10% or more decline in the price of an asset or index.

~ The IMF estimated earlier this week that the global economy would contract by 4.9% this year, before growing at a pace of 5.4% in 2021. Both estimates were downgraded from April’s forecast.


The International Monetary Fund has warned that the ongoing disconnect between financial markets and the real economy could lead to a correction in asset prices.

In recent months, equity markets have rallied despite troubling real-world events. The world is grappling with the coronavirus health emergency that has taken the lives of almost 500,000 people, according to John Hopkins University data, and threatens to cause an unprecedented economic crisis. In addition, there is social unrest in many advanced economies as citizens demand a more equal society, which could hit investor confidence.

Recent data indicates a deeper-than-expected downturn, the Fund added, but markets appear unfazed: the S&P 500 enjoyed its largest 50-day rally in history in early June.

“This disconnect between markets and the real economy raises the risk of another correction in risk asset prices should investor risk appetite fade, posing a threat to the recovery,” the IMF said Thursday in its updated Global Financial Stability report.

A correction is defined as a 10% or more decline in the price of an asset or index.

The Fund said that valuations currently looked stretched across many different markets.

“According to IMF staff models, the difference between market prices and fundamental valuations is near historic highs across most major advanced economy equity and bond markets, though the reverse is true for stocks in some emerging market economies,” it said.

Triggers for a shift in market sentiment could include a second wave of coronavirus infections, further social unrest, changes to monetary policy and a resurgence in trade tensions, the Fund added.

Asset and fund managers

There is a risk that “nonbank” financial companies — such as asset and fund managers — could also face shocks in the event of a broad wave of insolvencies. The IMF warned that these businesses could even act as an amplifier of this stress.

“For example, a substantial shock to asset prices could lead to further outflows from investment funds, which could, in turn, trigger fire sales from those fund managers that would exacerbate market pressures,” the Fund said.

The IMF estimated earlier this week that the global economy would contract by 4.9% this year, before growing at a pace of 5.4% in 2021. Both estimates were downgraded from April’s forecast.

“There is tremendous uncertainty,” Gita Gopinath, the IMF’s chief economist told CNBC’s Squawk on the Street Wednesday.

She added that “substantial support will need to be continued,” but its form will depend on how the recovery goes.

Governments and central banks around the world have launched large stimulus programs in an effort to keep economies afloat. In the euro zone, for instance, the European Central Bank is buying government bonds as part of a 1.35 trillion euros ($1.5 billion) emergency program to keep borrowing costs low for euro zone governments. Meanwhile,

The IMF also warned that corporate debt had risen over several years and currently stands at a “historically high level relative to GDP (gross domestic product).” This, coupled with household debt, which has also grown over the last years, is another vulnerability in the financial sector and could have a broader impact in the ongoing economic crisis.

“High levels of debt may become unmanageable for some borrowers, and the losses resulting from insolvencies could test bank resilience in some countries,” the IMF said.


##https://www.cnbc.com/2020/06/25/imf-global-financial-stability-markets-disconnect-risks-a-correction.html

Posted by Keyman188 > 2020-06-28 21:50 | Report Abuse

Here are the key questions for the stock market heading into the second half of the year

PUBLISHED SAT, JUN 27 20208:47 AM EDTUPDATED SAT, JUN 27 20209:32 AM EDT

~ In a normal year, the S&P 500 being down 6% halfway through would have investors asking, “What went wrong?” rather than “Why isn’t it down a lot more?”

~ Key questions for the second half include how much more can be expected of the expensive growth-stock goliaths in pushing the indexes forward as investors wait for the recovery to gain traction?

~ The powerful March-June rally ticked several of the boxes for those who try to certify important, durable market lows and recoveries.

~ But investors are still worried and maintain cash levels twice the long-term average, according to Citi.


Halftime of the year 2020 is nearly here, and the bulls are tired after mounting a furious comeback to narrow what was a deep deficit after the first quarter.

Fatigue was to be expected after the best 11-week sprint in market history, a gain of 44% in the S&P 500 from March 23 through June 8. And under normal circumstances, stocks giving back one-sixth of a headlong rally, as the index has the past three weeks, would be viewed as utterly routine. And, chances are, it is a routine if uneasy pullback.

But very little about this year has been typical, even if some of the rhythms are familiar. In a normal year, the S&P 500 being down 6% halfway through would have investors asking, “What went wrong?” rather than “Why isn’t it down a lot more?” And in fact it’s not too common for the market to be sitting on such losses near midyear.

Here is the 2020 course of the S&P 500 against the path from the only three years of the past 16 in a similar spot at this point: One year when a grinding bear market turned catastrophic (2008); the next year (2009) when a powerful new bull market began after a climactic March bottom; and a third (2010) when worries about a weak recovery and debt indigestion caused the first gut check of what would become a decade-long uptrend.

Of course, the trajectory of the Covid pandemic and consumer and business adaptations to it will be the main headline driver of how markets act from here.

Key questions for the second half

But in more market-specific terms, the way things go in the coming months comes down to a few key questions:

- Can this market continue acting like an early (or thoroughly renewed) bull phase, with broad strength, cyclical-stock leadership and an ability to look through near-term economic struggle?

- How much more can be expected of the expensive growth-stock goliaths in pushing the indexes forward as investors wait for the recovery to gain traction?

- Is there still enough cash and caution lying about the market to buffer the downside and serve as fuel for rally-chasing in coming months?

The powerful March-June rally ticked several of the boxes for those who try to certify important, durable market lows and recoveries. The persistence of the price gains, the amount of losses recouped in a brief time and the rare breadth of the stocks showing extreme momentum had technical strategists calling it an early bull market. The forward returns after the kind of upward lunge we saw into June are, historically, strong over the subsequent six to 12 months, but in the nearer term often lead to retrenchment and choppiness.

Over the past three weeks, the median stock in the market is down some 12% and the core service-sector-revival plays in airlines, hotels, casinos and retailers are off 20% or more from early-June highs as investors have been forced to rethink assumptions for a strong, linear restart of the economy once the Street’s “free pass” neared expiration.

For most of June, cyclically geared sectors have fallen back while defensive growth stocks held things together. And one issue with the idea of a new bull market is, no valuation excesses were wrung out of equities. Truthfully, it was more an event-driven crash mitigated by an overwhelming and rapid policy rescue. Stocks never for a moment got cheap, nor were balance sheets cleansed in any respect.

Right now, the median S&P 500 stock trades at 20-times forward earnings – pricey in the abstract, forgivable if the profit crash is brief, justifiable largely only in comparison with compressed corporate debt costs.

Which brings us to the question about what more can be requested of the mega-cap growth leaders, the five largest now nearly a quarter of the S&P 500. This group was not spared last week’s modest selloff, serial share-price-target increases by analysts on Apple and Amazon failing to generate fresh impetus for investors to commit new money into them aggressively. For now, at least.

Cont...


##https://www.cnbc.com/2020/06/27/here-are-the-key-questions-for-the-stock-market-heading-into-the-second-half-of-the-year.html

Posted by Keyman188 > 2020-06-29 11:38 | Report Abuse

Foreign selling of local equity widened to RM624.7m last week — MIDF Research

(theedgemarkets.com / June 29, 2020 09:59 am +08)

KUALA LUMPUR (June 29): Foreign investors offloaded Malaysian equity to the tune of RM624.7 million last week, from RM600.8 million the prior week.

In his weekly fund flow report today, MIDF Research's Khoo Zhen Ye said that so far in 2020, foreign investors have sold RM16.4 billion net on Bursa.

"In comparison with the other six Asian markets we track, Malaysia still has the fourth smallest foreign net outflow on a year-to-date basis.

"As markets reopened on Monday last week, international investors took out RM133.8 million net of local equities, which was a similar trend for all Southeast Asian markets on fear of a resurgence of Covid-19 outbreak that could drag the economic recovery for a longer period," he said.

Nonetheless, Khoo said the local bourse managed to close slightly higher by about 0.3% to 1,511.2 points on the same day.

"Note that the foreign net outflow occurred on every day last week.

"The foreign net selling continued to increase the next day on Tuesday at a tune of RM146.9 million before starting to subside on Wednesday and Thursday with the lowest foreign net outflow of the week [recorded] on Thursday at a tune of RM74.7 million," he said.

Nonetheless, he said foreign net selling activity rose to RM159.7 million last Friday, which was also the highest foreign net outflow recorded last week.

Khoo said investors' appetite was negatively affected by the downgrading of Malaysia's economic growth by the World Bank to -3.1% from -0.1% for 2020 announced last Thursday.

"The KLCI Index closed lower by about 1.3% to 1,488.1 points last week.

"In comparison with another three Southeast Asian markets that we track, Malaysia recorded the second lowest foreign net outflow and the Philippines had the lowest foreign net outflow last week," he said.

Khoo said while Thailand and Indonesia posted relatively higher foreign net outflows, foreign investors seemed to ease their selling last week compared with the preceding week.

"In terms of participation, all investor groups recorded a weekly decline in their average daily traded value (ADTV).

"Foreign investors experienced the largest weekly decline in their ADTV by 45.5% to reach RM880.4 million, which was below the healthy level of RM1 billion," he said.


##https://www.theedgemarkets.com/article/foreign-selling-local-equity-widened-rm6247m-last-week-%E2%80%94-midf-research

Posted by ahbah > 2020-06-29 11:42 | Report Abuse

~ But investors are still worried and maintain cash levels twice the long-term average, according to Citi.

Investors ... banyak kaya now !

So no wori lah, if mkt goes down, mani players got tons of moni to buy lah.

Posted by Keyman188 > 2020-06-29 11:56 | Report Abuse

honestly speaking...

Keyman188 very pity (kesian) for those late comers......

In fact for those old players already knew coming for perfect storm & left ready since earlier June or some last month......

Posted by Keyman188 > 2020-06-29 14:10 | Report Abuse

Malaysia's exports post double-digit fall for two straight months

(theedgemarkets.com / June 29, 2020 12:42 pm +08)

KUALA LUMPUR (June 29): Malaysia's exports posted a double-digit fall for two straight months through May no thanks to the Covid-19 pandemic.

The country's exports slumped 25.5% to RM62.7 billion in May 2020 from a year earlier, the Department of Statistics Malaysia (DOSM) said today. This is the second consecutive month that the export number has dropped in double-digit figures. In the month of April, the export figure plunged 23.8% year-on-year (y-o-y) to RM64.9 billion.

In a statement today, DOSM said the country's imports dived 30% y-o-y to RM52.3 billion, the largest decline since January 2009.

DOSM said the decrease in exports was attributed by lower exports to India (-RM3.2 billion), Singapore (-RM2.5 billion), Thailand (-RM2.1 billion), Japan (-RM2 billion) and the European Union (-RM1.9 billion).

The main products which contributed to the decline in exports were electrical and electronic products (-RM5.8 billion), petroleum products (-RM2.9 billion), crude petroleum (-RM1.7 billion), manufacture of metal (-RM1.4 billion), chemical and chemical products (-RM1.2 billion), and machinery, equipment and parts (-RM1.1 billion).

Meanwhile, decreases in imports were noted for petroleum products (-RM5.1 billion), chemical and chemical products (-RM2.6 billion), transport equipment (-RM2.4 billion), machinery, equipment and parts (-RM1.9 billion) and crude petroleum (-RM1.8 billion).

Lower imports were mainly from China (-RM3.3 billion), Singapore (-RM3.1 billion), the European Union (-RM2.3 billion), Thailand (-RM2.1 billion) and Indonesia (-RM1.4 billion).

The decrease in imports by end use was attributed by intermediate goods, capital goods and consumption goods. Imports of intermediate goods were lower by 27.8% or RM11.9 billion to RM30.8 billion. Capital goods stood at RM6.7 billion, decreasing 27.8% or RM2.6 billion while consumption goods declined 21.9% (-RM1.5 billion) to RM5.2 billion.


##https://www.theedgemarkets.com/article/malaysias-exports-post-doubledigit-fall-two-straight-months-0

Posted by Tom > 2020-07-07 00:20 | Report Abuse

testing 123 testing 123, lol!