Weekly Review, 11.05.-15.05.2020

Weekly Review, 11.05.-15.05.2020

The middle of the month was full of impactful events.

Monday: Markets moved chaotically, as some countries were preparing to ease the containment measures. TECH100 had the sixth day with consecutive gaining – 0.6%.

On the Asian market, things were different – the benchmarks lost in fear of another wave of infections: Japan225 lost 0.5%, while HongKong45 dropped by 1.42%.

In Europe, markets were mixed: Europe50 lost 0.4% and Germany30 0.7%. UK100 gained 0.1% as the country was ready to ease some of the containment measures.

Under Armour, the American casual and sports apparel manufacturer released the financial report for the first quarter of 2020. The pandemic made the company decline 23% in sales, and lose 34 cents EPS. The stock price fell this year nearly 54%.

Marriott International Inc also released a financial report in accordance with the current global situation. The net income was $31 million compared to $375 million at the same time last year.

The Fed started to buy corporate debt as a measure of easing the economy.

Tuesday: The markets were mixed once again. The American indices lost between 1.50% and 2.06%. Brent Oil fell 2.03% to $29.37 per barrel.

In Asia and down under Monday’s losses continued on Tuesday to 0.8%, and 1% respectively.

GBP/USD closed to a five-week low at $1.2264 after the government didn't decide on the lockdown measures.

The Consumer Price Index showed a decrease of 0.8%, this being the most significant drop ever recorded.

The Democrats proposed a new stimulus bill worth more than $3 trillion, surpassing the March bill. Republicans dismissed the idea because it has zero chances of becoming law.

Wednesday: It was a grim day for the markets, as all significant indices recorded losses after Jerome Powell's speech on the economy and the interest rates. American benchmarks lost up to 2%.

The European indices lost up to 2.9%.

HongKong45 lost 1.01% even after Tencent’s Q1 report exceeded expectations.

Tencent released its financial report, which was a sight for sore eyes. The pandemic made its revenue to increase by 26%, and the market capitalization to exceed $42 billion.

Cisco also posted better than expected financial results for Q1. The income was $2.8 billion.

Japan lifted the state of emergency in 39 prefectures as the number of cases is under control.

Thursday: The market was unimpressed by the events and moved in its rhythm. The American benchmarks gained up to 1.60%, while Gold continued to rise to $1,741.25 per ounce.

Although Prime Minister Abe lifted the state of emergency for most on the prefectures, Japan225 lost 0.3%.

In Europe, investors lost their faith in economic recovery after the pandemic: UK100 lost 2.75%, and Germany30 shed 1.95%.

Visa and MasterCard stated that credit card usage and first-time users increased by 18%because of lockdown measures.

The Department of Labor posted that 2.98 million people filed for unemployment claims in the last week. The total number has exceeded 36 million for just two months.

Taiwan TSMC officially announced that it would start building a factory in the U.S.

Bank of America became the first commercial bank to sell $1 billion worth of corporate bonds made to help the health industry to fight the pandemic.

Friday: The American indices gained between 0.3% to 0.8%, but overall they closed the week lower: USA30 being down 2.7%, USA500 lost 2.3%, and TECH100 shedding 1.2%.

Oil prices were on the run: Oil gained more than 19% over the week, while Brent Oil ended up by 3%.

Asian benchmarks also ended higher between 0.5% and 0.7%. Australia's ASX added 1.4%.

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Sources: marketwatch.com, investing.com, yahoo.com, edition.cnn.com


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