Morning Commentary: Closing out a Tough Week

Foreign Exchange - Morning Commentary
Closing out a Tough Week
Share this story:
Facebook
Twitter
LinkedIn
Email
David Atkinson
David Atkinson
Foreign Exchange Sales Manager
Markets this morning are somewhat in a snap back mode.  After a 10% single day loss in US equities yesterday, trading moved to Asia, which was a bit mixed in terms of equity performance.  Then we got to Europe, where there is a big rebound going on with equities up 7-8%.  US equities opened up about 5.00%.  The 10-year Treasury is up to 0.93%, along with a mini-recovery in oil.

Besides selling fatigue, markets seem to have responded positively to the liquidity injections from central banks.  As an example, the Fed offered $1 trillion of repo liquidity to the market, and had less than one-tenth of that taken up by banks.  It is one of those “Markets just feel good knowing it’s there” kind of policy goal.  Norway’s central bank became the latest monetary authority to issue an emergency 50 basis point rate cut.

Longer term, we are starting to get economic forecasts of what this whole pandemic will cost the world economy.  I am seeing some banks look for -2.00% or -3.00% in the first half of the year, with 2020 ending up flat after a second half recovery.  EU Commission announced today that it expects EU GDP to shrink around 1% for the year.

Our weekly Global Perspectives video focused on the collapse of emerging market stocks and currencies.  We filmed that yesterday for release today and sure enough, emerging markets have stabilized and currencies are recovering against the US dollar today.
If we can help you with any Foreign Exchange needs, please email foreignexchange@cnb.com or call (800) 447‑4133.
Want to learn more about international finance, economics, and global events? Sign up for our other Foreign Exchange emails and videos!
Follow City National Bank on social media:
Facebook Twitter LinkedIn Google Plus YouTube
Non-deposit investment products:
Are not FDIC insured,
Are not deposits or other obligations of City National Bank and are not guaranteed by City National Bank, and
Are subject to investment risks, including possible loss of the principal invested.
This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. City National Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting.
Unsubscribe from this list  |  Update email preferences
This message has been sent to bank@banking.offers.report. Please do not reply to this email. To ensure the delivery of future emails, please add foreignexchange@emails.cnb.com to your email address book or safe sender list.
Copyright ©2020 City National Bank – All Rights Reserved.
350 South Grand Avenue, 12th Floor, Los Angeles, CA 90071
City National Bank is a subsidiary of Royal Bank of Canada.
TERMS & CONDITIONS  |  PRIVACY STATEMENT
Equal Housing Lender
NMLSR ID# 536994 | City National Bank Member FDIC
                                                           

Comments

Popular posts from this blog