The world oil price war ended in the early hours of April 13, when OPEC + reached a historic agreement to cut oil output. Oil prices have stabilised after a bout of violence and risk sentiment has edged up.
Gold took a beating as risk sentiment improved. In Asian trading on Monday, spot gold fell sharply after breaking above $1,690 in the morning, briefly touching $1,680.
the Shanghai gold exchange gold T + D days also fell back, currently trading around 371 yuan/g, the day down about 0.3%. Gold rose 0.3 percent to 373.99 yuan per gram in early trading.
Spot silver also gave up early gains, Asia city intraday pressure slightly lower, trading around $15.20, focus on whether to hold the $15 mark.
At the same time, Shanghai gold exchange silver T + D under pressure to fall, trading at 3,685 yuan/kg, the day’s gain of more than 1 percent. Silver was up 0.51% at 3,764.00 yuan in early trading.
Statistics from real-time data update site worldometers show that as of 11:15 Beijing time on April 13, the global cumulative number of confirmed COVID 19 cases has exceeded 1.85 million, with 1,853,155 confirmed cases and 114,247 deaths.
More than 560,000 cases were confirmed in the United States, totaling 560,433 cases, and more than 22,000 deaths, totaling 22,115 cases. In New York City, more than 100,000 people have been diagnosed.
Over the past three weeks, the number of americans filing claims for jobless benefits has risen to more than 16m, meaning the us has lost 10 per cent of its workforce in three weeks and us companies are bracing for what could be their bleakest earnings season since the financial crisis.
As the U.S. corporate earnings season kicks off this week, investors will get a first look at the impact of the novel coronavirus blockade on profits and could provide some clues to the outlook for the rest of the year.
The results will test stocks as they try to bounce back from previous painful declines. The pandemic is expected to lead to a severe economic contraction in 2020, resulting in a sharp drop in corporate profits. The extent of the damage is unclear.
Wall Street is scheduled to kick off the earnings season with jpmorgan chase, Morgan Stanley, Goldman sachs, citigroup and other Banks reporting first-quarter results. Other healthcare companies, including Johnson & Johnson, Intuitive Surgical, international business machines and procter & gamble, are due to report results in the coming week.
In addition, many companies have withdrawn their forecasts for the quarter, raising concerns that analysts’ forecasts may underestimate the impact of the outbreak.
According to the latest statistics released by Factset last Thursday (9), the market expects that the annual growth rate of earnings per share (EPS) of the S&P 500 will fall by 10.0% in the first quarter, among which energy stocks, consumer durable goods, industrial, raw materials stocks have the largest downward revision, and there may be further downward revisions.
“We’re going to have a special earnings season,” said Jay Clayton, chairman of the SEC. Mr Clayton has said the SEC will allow public companies to delay their results and investors should expect delays. Many U.S. companies, including twitter and target, have recently withdrawn guidance due to the uncertainty surrounding the COVID 19 outbreak. So far, at least 84 companies have issued early warnings of negative first-quarter earnings.
Jimmy Conway, head of equity trading strategy for Europe, the Middle East and Africa at citigroup global markets, said in a previous interview that the next wave of U.S. earnings could see some pretty scary cash flow Numbers. He believes the stock market will not see a full recovery until it sees an upward revision in earnings expectations.
Chris Harvey, head of equity strategy at Wells Fargo securities, said the worst is over for U.S. stocks and that while the upcoming earnings season will be ugly, stocks won’t be heading back to their previous lows.
Goldman sachs analysts said in a report that they believe defensive sectors such as consumer staples, health care and utilities will be unaffected compared with most cyclical sectors. Goldman sachs analysts expect s&p 500 earnings to fall 15% in the first quarter from a year earlier and 33% in 2020.
Minneapolis fed President Neel Kashkari said Sunday that the U.S. economy’s recovery from the ravages of the new epidemic could be a ‘long and difficult road,’ with parts of the economy periodically shutting down and restarting.
In an interview with CBS ‘Face the Nation, kashkari said predictions of a rapid economic turnaround were too optimistic unless a treatment for COVID 19 was available in the coming months.
“It is likely to be a long and difficult road until an effective treatment or vaccine is available,” he said. “I think it is very difficult to see a v-shaped recovery in this situation.”