Trading Ideas

(Bloomberg) — The world’s longest stock-market bull run ended its 12-year reign as political turmoil helped drag Malaysian equities down more than 20% from their peak.The FTSE Bursa Malaysia KLCI Index tumbled 2.7% at the 5 p.m. close in Kuala Lumpur, extending the drop from its April 2018 all-time high to 21%. The benchmark had been in a bull run since 2008, rebounding from the global financial crisis to weather the European sovereign debt crisis, the U.S.-China trade war and Malaysia’s first change of government since independence.The abrupt resignation of Malaysian Prime Minister Mahathir Mohamad coupled with concern over the …read more […]

U.S. Treasury Secretary Steven Mnuchin told Reuters he does not expect the coronavirus outbreak to have a material impact on the Phase 1 U.S.-China trade deal, although that could change as more data becomes available in coming weeks. In a separate news conference, he said there could be some short-term impact on supply chains, but cautioned against the idea that it could increase concerns about globalization. …read more […]

(Bloomberg) — European equities haven’t had such a bad day in more than three years as increasing concerns over the economic impact of the coronavirus hurt travel and luxury sectors.The Stoxx Europe 600 Index fell as much as 3.6%, the most since June 2016, led by the auto, mining and travel sectors. Luxury companies tumbled on fears that the epidemic will hurt sales, with LVMH Moet Hennessy Louis Vuitton SE losing as much as 7.2% and Roche Holding AG dropping 2.3%.Travel shares and especially airlines were also having a bad day. The Stoxx 600 Travel and Leisure Index dropped the …read more […]

(Bloomberg) — The coronavirus outbreak spread further outside China, sparking fears of a global pandemic. Italy, now the virus’s epicenter on the continent, is studying measures to support the local economy.Infections spiked again in South Korea and Iran, while Afghanistan, Bahrain and Kuwait all reported their first cases. That led to a renewed plunge in stocks globally and Europe’s debt risk jumped the most in two years.The Chinese government said it would postpone annual legislative meetings. Earlier on Monday, China said it would ease the quarantine in Wuhan and then abruptly reversed hours later, saying the lockdown would remain in …read more […]

Feb.24 — In Germany, Chancellor Angela Merkel’s party plunged to an historic low in a state election in Hamburg. The Christian Democratic Union’s outgoing leader Annegret Kramp-Karrenbauer has come under fire for struggling to steer the succession process. The party will gather its leadership in Berlin today in an attempt to seek a way out of the political crisis. Bloomberg’s Daniel Schaefer reports on “Bloomberg Markets: European Open.” …read more […]

Feb.24 — Janet Mui, global economist at Cazenove Capital, discusses the impact of the coronavirus on equity markets and China’s economy. She speaks on “Bloomberg Markets: European Open.” …read more […]

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“The promise of stimulus has made commodity markets act like equity markets, building up risks of a sharp correction,” analysts at the Wall Street bank said in a note dated Feb. 21. Over a 12-month period, the bank forecast returns of 14.3% from energy, 4.3% from industrial metals and a negative 0.8% from precious metals. Commodity markets have come under pressure as mounting fears that the new flu-like virus will grow into a pandemic have heightened worries of a slowdown in global economic growth. …read more […]

Some asset prices are moving together in unusual ways, an indication that investors may be preparing their portfolios for a coronavirus-led global slowdown. U.S. stocks, gold, Treasuries and the dollar have all surged in 2020, a climb that has taken place alongside persistent concerns over the outbreak’s economic fallout. Such synchronous moves are not typical, as investors usually have different reasons for buying each asset class. …read more […]

(Bloomberg) — A raft of new coronavirus cases in numerous countries outside China over the weekend has redoubled concern about the ability of the illness to spread, and potential economic impact.South Korea’s Kospi dropped as much as 3.8% after the country’s count of cases rose quickly to 763, and the government raised its infectious-disease alert to the highest level. Italy’s government imposed a lockdown on an area of 50,000 people near Milan and took other measures as infections exceeded 130. Iran reported an eighth death with 43 cases.That’s all on top of the impact on hardest-hit China, where millions of …read more […]

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(Bloomberg) — China is trying to get people back to work, risking a renewed spread of the coronavirus.Central and local governments are loosening the criteria for factories to resume operations as they walk a tightrope between containing a virus that has killed almost 2,600 people and preventing a slump in the world’s second-largest economy.The rush to restart has been propelled by China’s leader Xi Jinping and top leaders, who are urging companies to resume production so the country can continue to meet lofty goals for growth and economic development in 2020. At stake are the fates of millions of Chinese …read more […]

(Bloomberg) — Renewed fears that the coronavirus will harm global growth rocked commodity markets again on Monday, with oil and metals prices tumbling while gold soared toward $1,700 an ounce amid a global flight to haven assets.As the deadly virus spreads more widely outside China, raising the threat of a global pandemic, finance chiefs and central bankers from the world’s largest economies said they see downside risks to the world economy persisting.That’s spurring fresh alarm in commodity markets that had started to recover from lows hit earlier in the month when China’s virtual shutdown threw supply chains into chaos. With …read more […]

Deutsche Bank Aktiengesellschaft (ETR:DBK) received a lot of attention from a substantial price increase on the XTRA… …read more […]