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Africa and International Market Report: 06 April 2020
Africa and International Market Report: 06 April 2020
Posted

By - Jamel Lahiani

Posted - 06-04-2020

Wall Streets main indexes fell last week with a Dow Jones declined by -2.03 percent as the coronavirus absorbed the record US job growth streak in the trump government period, intensifying fears of a deep
economic slowdown. The loss of 701,000 jobs that Labor Department data showed for March did not completely capture the economic damage from the virus. In fact, more people will be out of work due to the persistence in times of the pandemic. The decline of the demand following the obligation of peoples to stay indoors leads to a lack of cash and the insolvability of many companies.

Japan’s Nikkei index was subject to a huge decline last week by -8.09 percent while the European DAX index declined by -0.93 percent as dismal business activity data heralded a deep economic and earnings recession due to the novel coronavirus outbreak.

Many Composite data published last week showed a severely contracted business activity in the Eurozone in March, with several analysts forecasting worse readings as most economies in the region shut down to curb the spread of the virus. In fact, economists expect euro area real GDP to shrink as much as 43 percent in the second quarter.

The increasing hopes that Saudi Arabia and Russia would end their price war were leading to appreciate the oil price during last week to realize a gain of 32.18 percent. The only lower supply of crude oil by the main producers around the world can put a floor under oil prices. In this context, the US President Trump met with US oil company executives at the White House and said Saudi Crown Prince Mohammed bin Salman and Russian President Vladimir Putin both want something to happen to stabilize the global oil market.

The Healthcare and Retail stocks were among the few gainers around the world last week, as the sector continues to benefit from safe-haven demand due to the necessity caused by the outbreak.

The Bitcoin (BTC/USD) price appreciate last week by 15.17 percent to increases more than 9.28% and fluctuating around $6775.21 showing more confidence against the investors and traders about the Bitcoin money looking expecting higher value.

In African currency markets, The Nigerian NAIRA was exchanged at 365.00 US dollars. The South Africa ZAR depreciated faces to the US dollar by 7.86 % and ending last week at 19.00561 US dollars.

The last week main markets prices and variations

Market

Market in Focus: 06 April – 10 April 2020
We have a list of high impact events this week. The publication of the events can leads to a strong movement or a trend for the related currencies. The discussion of the events impacts will be done within the daily FOREX report.

The publications that have a very significant theoretic impact are:

  • USD: OPEC Meeting. “Monday”.
  • USD: JOLTS Job Openings is a survey done by the US Bureau of Labor Statistics to help measure job vacancies. It collects data from employers including retailers, manufacturers and different offices each month. ”Tuesday”.
  • JPY: The Current Account released by the Ministry of Finance is a net flow of current transactions, including goods, services, and interest payments into and out of Japan.” Wednesday”.
  • CAD: The Building Permits released by the Statistics Canada shows the number of permits for new construction projects. It implies the movement of corporate investments (the Canadian economic development). ”Wednesday”.
  • USD: FOMC Minutes is a stand for The Federal Open Market that reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth.” Wednesday”.
  • JPY: Bank of Japan Governor Haruhiko Kuroda will hold a press conference about monetary policies in Tokyo. Mr Kuroda exercises general control over the Bank’s business. He is in charge of the Internal Auditors’ Office. ”Thursday”.
  • EUR: ECB Monetary Policy Meeting Accounts contain an overview of financial market, economic and monetary developments. It’s followed by a summary of the discussion, in an unattributed form, on the economic and monetary analyses and on the monetary policy stance.” Thursday”.
  • CAD: The Unemployment Rate released by the Statistics Canada is the number of unemployed workers divided by the total civilian labor force.” Thursday”.
  • USD: The Initial Jobless Claims released by the US Department of Labor is a measure of the number of people filing first-time claims for state unemployment insurance.” Thursday”.
  • USD: The Consumer Price Index (CPI) Ex Food & Energy released by the US Department of Labor Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. ” Friday”.

Market

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