Europes closed. Apple didnt give a forecast and this white house commentary. I would start with the white house commentary the apple stock, even after you knew that there was no guidance, was up rather dramatically when we got word that the United States was going to retaliate against china, that was it it gave up the ghost and accelerated the decline in amazon we did have the greatest month since 1987 so that january month was augmented by tremendous japanese buying in 87. It was artificial. This was a solid rally off the bottom its time to consolidate theres no we have to get used to consolidation meaning a 400point dow instead of a 100point dow. We went down 34 in 25 sessions, up 35 in 27 sessions what does consolidation mean now . It has to do with the idea that we give up some of this last gain. The last gain was a short squeeze in airlines, in travel, leisure. We started believing in marriott up 10. Then yesterday we had a really strange day where the most important thing that ha
Increasing pessimism about growth. More ceos than ever see a slowdown. Sophie chinas mystery virus is spreading through persontoperson contact. Hubs stepping up passenger screening. Lets turn to selina wang in beijing with australian markets coming online. Selina we did see australian markets red hot. We are now starting to see them drift slightly lower, marginally except for the new zealand up. 2 after gaining 3 since the start of this year. We did yesterday see the equities hit record highs when it comes index price and private equity valuations. So, that would be enough to ring bells in normal times but our strategists say that macro backdrop in australia is dire enough to call this rally into question when you consider the massive wildfires that are damaging their economy. With increasing focused on environmentally sustainable investing, that rally is potentially at risk. I want to check on that a little bit more with this next chart. Thelook at that rally in context of the u. S. C
Low for might as well, but the pboc not adding actual liquidity saying things are reasonably apple when it comes to liquidity conditions at the moment. I suppose the big question is will any of this be transmitted given that we know so many still out of the economy, essentially either stuck at home or factories still still, supply chain massively dislocated. Sarah we have seen markets across the asiapacific region turning higher. We continue to see resiliency, at least on the mainland and in hong kong. The hong kong hang seng up about. 5 , and in japan, we have seen markets turn higher as well, holding onto those gains, up about. 6 . The one that is moving to the downside bucking the trend is the south korean cosby after the country did report about 10 new coronavirus cases. You see it falling to a twoweek low, down about. 25 at the moment. Lets take a look at some other risks in the currency and commodities space. We did see copper moving higher for an eighth day and 11. Gold, though,
It is also near levels that is signaling it is in overbought territory. Overall we started with the nikkei to 25 moving upside. It has now fallen below the hang seng. Talked about shanghai comp with regards to Inflation Numbers portending good news. Pork prices responsible for a lot of gains. Something to worry about. Excessive be down to inventory and overcapacity at the same time. Does not bode well. Not painting a rosy picture for the chinese economy. Lets have a look at what else is going on. The bond future. 10year trading outlook, 1. 94 . The 10 year yield unchanged, 1. 3 . 28,sterling slightly up, 1 partially down to moodys putting its negative outlook stamp on what they perceive there. Offshore you want just a fraction below seven. Lets see what else is going on here in hong kong. David as you are pointing out, stocks are under pressure. What has happened this morning, a couple things. Police confirming they shot two protesters during rushhour traffic this morning. Demonstrator
Gauge went on the offer the share price of the stock went up by 2 percent after the boards rejection letter was published even after having risen 6 percent on the day before on reports that negotiations were in process bella seaboard letter expressed disappointment as well the hong kong decided to go public about the talks after just 2 days but the longer history of failed bids for the l. S. E. And up other similar planned International Stock exchange mergers suggest the basic structural challenges may have eventually sunk the deal even if hong kongs conditions an early disclosure of the talks had not become issues. And as the talks of protests in hong kong have been raging much of the focus has been aimed at chinas extradition bill and understandably so however under reported in the wake of the turmoil has been climbing cost of living in the region recently our correspondent Michelle Greenstein was on the ground in hong kong where she documented the issue and filed this report. This i