DAILY MARKET REPORT

30.06.2020

Index Last Change

DJIA 25,595.80 580.25

S&P 500 3,053.24 44.19

NASDAQ 9874.153 116.93

NIKKEI 22,387.13 392.09

HANG SENG 24,518.14 216.86

DJ EURSTOXX 50 3,232.02 27.85

FTSE 100 6,225.77 66.47

CAC 40 4,945.46 35.82

DAXX 12,232.12 142.73

US

Stock futures rise slightly, headed for gains to finish out June

U.S. stock futures rose slightly in overnight trading and pointed to gains at the open on

Tuesday, the final trading day of a volatile month for stocks.

Dow futures rose 20 points, or 0.2%. The S&P 500 and Nasdaq-100 were also set to open

higher, with gains of 0.3% and 0.4%, respectively.

Shares of Wells Fargo ticked nearly 2% lower in after hours trading after the bank said it

would likely slash its dividend in the third quarter to comply with the Federal Reserve stress

test. Bank of America, Citi, JPMorgan and Goldman Sachs said their dividends would stay the

same.

Shares of chip stock Micron jumped 5% in after hours trading on Monday following its better-

than-expected earnings report. Micron gave strong forward revenue guidance. Shares of

Lululemon also gained nearly 4% in extended trading on news it will acquire at-home fitness

company Mirror for $500 million.

On Monday, the Dow climbed 580 points, helped by a 14.4% gain in Boeing’s stock, as

certification flights for the Boeing 737 Max began Monday. The S&P 500 also registered a

gain, climbing 1.5%. Monday’s gains brought the 500-stock index into positive territory for

the volatile month of June.

The Nasdaq Composite rose 1.2%, helped by gains in Netflix, Microsoft, Facebook and

Apple.

“It wasn’t a day where the sole driving force was simply rising expectations of continued

economic improvement because the best five sector performances [Monday] comprised two

cyclical sectors — industrials and materials— a growth sector— communication services —

and two defensive sectors — utilities and staples,” Jim Paulsen, chief investment strategist at

the Leuthold Group, told CNBC. Monday “was characterized by broad participation in a

strong rally.”

Monday’s sharp gains came amid a backdrop of increasing coronavirus cases in the U.S. and

states attempt to reopen from the shutdown. U.S. governors are walking back or delaying

reopening plans as Covid-19 cases climb around the country. New Jersey Gov. Phil Murphy

announced the state will delay a resumption of indoor dining that was planned for Thursday.

Despite the recent uptick in cases, stocks are headed for a month of gains in June. The Dow

is up 0.8% and the S&P 500 is up 0.3% in June. The technology-heavy Nasdaq Composite

has returned more than 4% this month.

Federal Reserve chair Jerome Powell and Treasury Secretary Steven Mnuchin will testify

before the House Financial Services Committee at 12:30 p.m. on Tuesday. The joint hearing

will address the Fed and Treasury’s response to the coronavirus pandemic.

In remarks he will deliver Tuesday Powell said uncertainty reigns over the outlook for the

economy in the wake of the coronavirus pandemic.

“Output and employment remain far below their pre-pandemic levels. The path forward for

the economy is extraordinarily uncertain and will depend in large part on our success in

containing the virus,” Powell said. “A full recovery is unlikely until people are confident that it

is safe to reengage in a broad range of activities. “The path forward will also depend on the

policy actions taken at all levels of government to provide relief and to support the recovery

for as long as needed,” Powell added.

The Conference Board’s consumer confidence index will be released at 10:00 a.m. on

Tuesday. Economists polled by Dow Jones are expecting a read of 91 in June, up from May’s

reading of 86.6.

Shipping company FedEx will report fiscal fourth-quarter earnings after the bell on Tuesday.

EUROPE & UK

European markets head for positive open, cheered by China data

London’s FTSE is seen unchanged, opening at 6,240 while Germany’s DAX is seen opening

46 points higher at 12,304, France’s CAC 40 is seen 7 points higher at 4,967 and Italy’s FTSE

MIB 69 points higher at 19,412, according to IG. China’s official manufacturing Purchasing Manager’s Index for June came in above

expectations. China’s official manufacturing PMI for June came in at 50.9, according to data

released by the country’s National Bureau of Statistics

European stocks are expected to open in broadly flat to positive territory on Tuesday with investors likely to be buoyed by a further sign of an economic recovery in China. London’s FTSE is seen unchanged, opening at 6,240 while Germany’s DAX is seen opening 46 points higher at 12,304, France’s CAC 40 is seen 7 points higher at 4,967 and Italy’s FTSE MIB 69 points higher at 19,412, according to IG.

European markets look set to follow the positive trend set by markets in Asia Pacific, which rose Tuesday afternoon as China’s official manufacturing Purchasing Manager’s Index for June came in above expectations. China’s official manufacturing PMI for June came in at 50.9, according to data released by the country’s National Bureau of Statistics (NBS). Economists in a Reuters poll had a median forecast of 50.4 for the data print. PMI readings above 50 signify expansion, while those below that indicate contraction. In May, the official manufacturing PMI was at 50.6, according to the NBS. However, data from Japan Tuesday showed that industrial production in May dropped 8.4% month on month, according to data released in a preliminary report by the country’s Ministry of Economy, Trade and Industry. Global markets are also keeping watch of developments in the coronavirus pandemic, as more U.S. governors are walking back or delaying reopening plans as Covid-19 cases climb around the country due to a surge in new cases. Tedros Adhanom Ghebreyesus, the director-general of the World Health Organization, said Monday that the pandemic is still accelerating and without more collaborative global intervention, “the worst is yet to come.” There are no major European earnings due Tuesday. On the data front, Spain and the U.K. release final first-quarter gross domestic product (GDP).

ASIA

Japan up nearly 2% as Asia Pacific stocks rise; China’s June manufacturing

activity beats expectations

Shares in Asia Pacific rose in Tuesday afternoon trade, with Japan’s Nikkei 225 up 1.81%.

China’s official manufacturing PMI for June came in at 50.9, according to data released by

the country’s National Bureau of Statistics (NBS). Economists in a Reuters poll had a median

forecast of 50.4 for the data print.

Developments surrounding the coronavirus pandemic will also continue to be watched, with

World Health Organization chief Tedros Adhanom Ghebreyesu warning Monday that “the

worst is yet to come.”

Stocks in Asia Pacific rose in Tuesday afternoon trade as China’s official manufacturing Purchasing Manager’s Index for June came in above expectations.

The Nikkei 225 in Japan rose 1.78% in afternoon trade, following its more than 2% slide on Monday. The Topix index also added 1.26%. In South Korea, the Kospi gained 1.61%. Mainland Chinese stocks were also higher by the afternoon, with the Shanghai composite up around 0.6% while the Shenzhen component jumped 1.902%. Hong Kong’s Hang Seng index advanced 0.89% as China passed a controversial national security law for the city. Meanwhile, the S&P/ASX 200 in Australia added 1.45%. Overall, the MSCI Asia ex-Japan index rose 1.02%. China’s official manufacturing PMI for June came in at 50.9, according to data released by the country’s National Bureau of Statistics (NBS). Economists in a Reuters poll had a median forecast of 50.4 for the data print. PMI readings above 50 signify expansion, while those below that indicate contraction. In May, the official manufacturing PMI was at 50.6, according to the NBS. Meanwhile, Japan’s industrial production in May dropped 8.4% month-on-month, according to data released Tuesday in a preliminary report by the country’s Ministry of Economy, Trade and Industry. That was a larger decline than a median market forecast of a 5.6% fall by economists in a Reuters poll. Developments surrounding the coronavirus pandemic will also continue to be watched, with World Health Organization chief Tedros Adhanom Ghebreyesu warning Monday that “the worst is yet to come.” “Although many countries have made some progress, globally, the pandemic is actually speeding up,” he said during a virtual news conference from the agency’s Geneva headquarters. “We all want this to be over. We all want to get on with our lives, but the hard reality is that this is not even close to being over.”

Economic Release

Europe and UK

Event Survey Prior

GBP : GDP -2.0% -

GBP: CURRENT ACCT -15.4B -5.6B

EUR :FRENCH PPI - -2.9%

EUR: FRENCH CPI - 0.1%

US and Canada

Event Survey Prior

US: REDBOOK - -1.4%

US: CHICAGO PMI 45.0 32.3

DOMESTIC MARKET

Stocks Last Close Change Volume

SOLIDERE A 12.24 12.08 0.16 51303

SOLIDERE B 12.18 11.93 0.25 26373

HOLCIM 10.46 10.46 0.00 0

BLOM GDR 1.4 1.4 0.00 0

BLOM BANK 3.74 4.16 10.10 90108

AUDI GDR 0.41 0.41 0.00 94

AUDI 0.89 0.89 0.00 0

BYBLOS GDR 70 70 0.00 0

BYBLOS BANK 0.6 0.6 0.00 0

FOREIGN EXCHANGE

Currency Spot NY Closing

EUR 1.1237 1.1242

GBP 1.2298 1.2299

AUD 0.6881 0.6868

JPY 107.77 107.58

CHF 0.9518 0.9512

CAD 1.3664 1.3661

AMD 481.4200 480.8800

RUB 70.0143 70.0760

EUR 1.1237 1.1242

GBP 1.2298 1.2299

AUD 0.6881 0.6868

JPY 107.77 107.58

Market Summary

Commodities

Oil prices slip on demand worries, prospect of Libyan supply return

Oil prices fell on Tuesday as optimism for a straightforward recovery in fuel demand faded

and a looming increase in supply weighed on the market.

Investors are watching to see whether Libya, which can produce about 1% of global oil

supply, is able to resume exports, blockaded since January amid a civil war.

U.S. West Texas Intermediate (WTI) crude futures traded down 26 cents, or 0.7%, at

$39.44 a barrel, having jumped 3% in the previous day.

Brent crude futures for September fell 17 cents, or 0.2%, to $41.68 a barrel, paring

Monday’s 92-cent gain.

Oil prices fell on Tuesday as optimism for a straightforward recovery in fuel demand faded and a looming increase in supply weighed on the market, with Libya’s state oil company flagging progress on talks to resume exports.

U.S. West Texas Intermediate (WTI) crude futures fell as much as 44 cents, but recovered slightly after stronger-than-expected Chinese factory data.

By 0201 GMT they were trading down 26 cents, or 0.7%, at $39.44 a barrel, having jumped 3% on Monday.

Brent crude futures for September fell 17 cents, or 0.2%, to $41.68 a barrel, paring Monday’s 92-cent gain. The less active August contract, which expires on Tuesday, fell 25 cents after gaining 69 cents on Monday.

Optimism on Monday had been based on strong growth in U.S. pending home sales, bolstering belief that global fuel demand is rising steadily as major economies reopen after coronavirus lockdowns.

But at the same time, coronavirus cases continue to rise in southern and southwestern U.S. states.

“It’s really difficult to say that demand is a one-way street. There are still plenty of risks going both ways,” said Vivek Dhar, mining and energy commodities analyst at Commonwealth Bank of Australia.

Bulls will be looking for more signs of a demand recovery in data due on Tuesday from the American Petroleum Institute industry group, and from the U.S. government on Wednesday.

A preliminary Reuters poll showed analysts expect U.S. crude oil stockpiles fell from record highs last week and gasoline inventories decreased for a third straight week.

On the supply side, investors are watching to see whether Libya, which can produce about 1% of global oil supply, is able to resume exports, blockaded since January amid a civil war.

Libya’s National Oil Corp (NOC) said on Monday it was making progress on talks with neighboring countries to lift the blockade.

Gold set for best quarter in 4 years on coronavirus fears

Gold prices held steady on Tuesday and were heading for their biggest quarterly rise in

more than four years as fears over rising coronavirus cases around the world boosted demand for the safe-haven metal.

Spot gold was mostly unchanged at $1,770.77 per ounce by 0052 GMT, just $8.29 shy of a

near eight-year high of $1,779.06, hit last week.

U.S. gold futures were flat at $1,781.20

Gold prices held steady on Tuesday and were heading for their biggest quarterly rise in more than four years as fears over rising coronavirus cases around the world boosted demand for the safe-haven metal. Fundamentals Spot gold was mostly unchanged at $1,770.77 per ounce by 0052 GMT, just $8.29 shy of a near eight-year high of $1,779.06, hit last week. Bullion, with more than 12% gains this quarter, is on track for its best quarter since end-March 2016. Gold was also headed for its third straight monthly gain. U.S. gold futures were flat at $1,781.20. Confirmed COVID-19 cases worldwide exceeded 10 million and deaths surpassed 500,000 over the weekend.

Texas, Florida and California are among U.S. states to reverse reopenings and reclose businesses such as bars to slow the spread of the coronavirus. U.S. Federal Reserve Chair Jerome Powell said on Monday the outlook for the world’s biggest economy is “extraordinarily uncertain” and will depend both on containing the coronavirus and on government efforts to support the recovery. Gold is largely considered as a safe investment during times of political and financial uncertainty. Meanwhile, an upbeat U.S. data spurred fresh optimism on the world’s largest economy and lifted investor sentiment towards riskier assets. In Asia, China’s factory activity expanded at a faster pace in June, beating expectations, while activity in the country’s services sector expanded at its fastest pace in seven months, official data showed. Palladium eased 0.1% to $1,902.68 per ounce, while platinum rose 0.1% to $806.22 and silver lost 0.3% at $17.81. FX

Safe-haven currencies on defensive, British pound soft on spending plan

Safe-haven currencies were on the back foot on Tuesday as hopes of an economic turnaround boosted stock prices.

The British pound was under pressure after British Prime Minister Boris Johnson promised a “Rooseveltian” boost to public spending.

Meanwhile, the dollar index was little changed at 97.444.

Safe-haven currencies were on the back foot on Tuesday as hopes of an economic

turnaround boosted stock prices while sterling was under pressure after British Prime

Minister Boris Johnson promised a “Rooseveltian” boost to public spending.

Spurring fresh optimism on the U.S. economy was pending home sales data, which showed

that housing market activity had quickly recovered in May from a plunge triggered by the

pandemic.

Pending home sales, based on contracts signed last month, surged 44.3%, compared to

economists’ forecast for 18.9% rise.

Wall Street shares were also buoyed by a 14% surge in Boeing as the embattled aircraft

maker began a series of long-delayed flight tests of its redesigned 737 MAX.

The dollar has climbed to 107.59 yen, having touched a three-week high of 107.885, though

it was capped by its 100-day moving average around that level.

The safe-haven Swiss franc eased to 0.9511 per dollar and 1.0697 per euro.

The euro stood at $1.1244, having gained a tad against the U.S. currency on Monday.

Sterling traded at $1.2297, after sliding to a one-month low of $1.2252 on Monday on

concerns about how Britain’s government will pay for its planned infrastructure program

following Prime Minister Johnson’s promise to increase spending.

“This is the moment for a Rooseveltian approach to the UK,” Johnson told Times Radio on

Monday, referring to former U.S. President Franklin D. Roosevelt’s “New Deal” program,

which included a raft of job-creating public works projects to help the United States recover

from the Great Depression.

There are also doubts about whether Britain will seal a trade pact with the European Union

as little progress has been made in agreeing on Britain’s future relationship with the bloc,

which it exited on Jan. 31

The British currency hit a three-month low against the euro, which rose to as high as 0.9175

pound on Monday. The common currency last stood at 0.9138 pound.

All in all, the dollar index was little changed at 97.444.

U.S. Federal Reserve Chair Jerome Powell said late on Monday the outlook for the world’s

biggest economy is “extraordinarily uncertain” and will depend both on containing the

coronavirus and on government efforts to support the recovery.

The epidemic showed little sign of abating as Arizona ordered the closure of bars and gyms,

joining other sun belt states like Florida and Texas in reversing reopenings.

Los Angeles County also recorded an “alarming” one-day spike of new COVID-19 infections.

“We’ve seen cases rising again even in countries that appear to have contained the disease

such as Japan and Australia,” said Ayako Sera, senior market economist at Sumitomo Mitsui

Trust Bank.

“The bankruptcy of Cirque de Soleil highlights the fact that the show biz and tourism sector

will continue to suffer. The economy is still barely tottering,” she said.

The entertainment group filed for bankruptcy protection on Monday as the pandemic forced

the famed circus operator to cancel shows and lay off its artistes.

On the diplomatic front, the United States began eliminating Hong Kong’s special status

under U.S. law on Monday, halting defence exports and restricting the territory’s access to

high technology products as China prepares controversial national security legislation for

Hong Kong.

The offshore Chinese yuan barely budged at 7.0746 per dollar.

This report is published for information purposes only. The information herein has been compiled from, or based upon sources

we believe to be reliable, but we do not guarantee or accept responsibility for its completeness and accuracy. This document

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