MARKET SNAPSHOT
Equities:
The S&P 500 ended yesterday's session up 2.28% as Brent crude's soared to a record 21.02% after U.S. President Donald Trump tweeted that he expected Saudi Arabia and Russia to end their spat and cut back oil production by up to 15 million barrels.
After yesterday's unemployment benefits report showed that weekly jobless claims soared to a record seasonally adjusted level of 6.65 million in the week ended March 28, investors will focus on today's US jobs report for March.
In Europe, the Stoxx 600 fell 0.7% after the eurozone Services Purchasing Managers' Index slumped to its worst level in series history with Chris Williamson, chief business economist at IHS Markit, warning that the bloc's economy was already contracting at a year-over-year rate nearing 10%. The FTSE 100 slipped 0.9%.
In Asia, the Shanghai SE Composite was down 0.6% as the Caixin China Composite Output Index came in at 46.7 in March, indicating a "limited" recovery in Chinese economic activity. Hong Kong's Hang Seng edged down 0.2%, while Japan's Nikkei 225 was flat as a gauge measuring private-sector business activity in Japan plunged at the sharpest rate in close to a decade in March.
Currencies:
Bonds:
Commodities:
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NEWS AND ANALYSIS:
Eurozone business activity index falls at steepest rate to record low: IHS
S&P affirms US at AA+ on monetary, fiscal policy strength to limit virus impact
Chinese business activity shrinks at slower rate in March
Japanese business activity drops at sharpest rate since 2011
Financials
Mnuchin raises interest rate for small-business lending program to 1%
U.S. Treasury Secretary Steven Mnuchin raised the interest rate on the program loans by 50 basis points, and the nation's biggest bank said it will likely not be ready to start accepting applications by April 3.
SEC postpones decision on 'anti-competitive' high-speed data service – Reuters
The regulator postponed its decision on the NYSE's proposal to offer a new high-speed wireless connection after receiving at least six letters objecting to the plan, Reuters reported, citing an April 1 filing.
Insurance
Researchers forecast above-average hurricane activity for 2020
The team projects that 16 named tropical systems will form during the Atlantic basin hurricane season in 2020.
US life insurers' growing commercial mortgage portfolios may face virus pressure
The life insurance industry held over $500 billion of commercial mortgage loans in 2019, a year-over-year increase of 7.5%. It is among those calling for the Fed to allow the asset class to be used as collateral for a special lending program.
Energy and Utilities
Customer mix, regulatory support critical to how US utilities manage demand drop
Dominion Energy and Entergy are among the US utilities that look "relatively insulated" from a drop in reduced commercial and industrial demand, according to Scotia Capital (USA) Inc. analyst Andrew Weisel.
Hit hard by depressed market and price war, oil industry finds federal allies
The U.S. Department of Energy is offering to store domestic oil in its reserve, and U.S. Sen. Lisa Murkowski, R-Alaska, appealed to the U.S. Treasury Department to ensure the sector can access federal loans.
Healthcare
Medicaid adviser supports improving access to integrated care models
The Medicaid and CHIP Payment and Access Commission supported two congressional recommendations that are meant to improve access to integrated care models. Commissioners also discussed the coronavirus pandemic's impact on Medicaid.
Pfizer's biosimilar to Roche's cancer drug MabThera wins EU approval
The European Commission approved Pfizer's Ruxience, a biosimilar version of Roche Holding AG's cancer and autoimmune blockbuster drug MabThera, or rituximab.
Consumer
Ford's US sales drop 12.5% YOY in Q1
The automaker said the ongoing coronavirus outbreak impacted sales as consumers are encouraged to stay home.
Ross Stores to furlough employees, cut salaries
The California-based apparel retailer's chairman and CEO will forgo their salaries while senior executives will take a "substantial" pay cut during this period.
Technology, Media & Telecommunication
Reliance Jio to gain most subscribers if Vodafone exits India, experts say
Mobile location data tracking tools raise privacy questions amid COVID-19
Metals and Mining
Vale faces closure of 25 dams as Brazilian regulator orders shutdown
The company admitted that its Santana dam in Minas Gerais state, which was placed on an emergency level 1 in October 2019, did not register its declaration of stability.
Turquoise Hill investor pushes for board change, claims Rio Tinto mismanagement
Pentwater Capital Management, which holds about 9.09% in Turquoise Hill with its affiliates and associates, claimed that shareholders have suffered massive value destruction at the hands of Rio Tinto.
Real Estate
AccorHotels suspends dividend, cuts staff hours amid pandemic
The dividend suspension will enable AccorHotels to save €280 million, a quarter of which will be placed into a fund that would help its struggling employees, the Financial Times reported.
Simon Property confirms salary cuts for CEO, other execs amid pandemic
The base salary reductions went into effect March 28 and will continue for a to-be-determined period of time.
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ECONOMIC INDICATORS:
U.S.
8:30 a.m. ET — Employment Situation
9:45 a.m. ET — PMI Services Index
10:00 a.m. ET — ISM Non-Manufacturing Index
1:00 p.m. ET — Baker-Hughes Rig Count
Global
11:00 a.m. ET — Global Services PMI
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EARNINGS:
Before market open
Constellation Brands Inc.