Friday, 7 Aug 2020

S&P 500’s Past 100 Days Were Its Best in Almost Nine Decades

Ukraine central bank governor submits resignation, citing political pressure

KYIV, July 1 (Reuters) – Ukraine’s Central Bank Governor Yakiv Smoliy unexpectedly submitted his resignation on Wednesday, citing “systematic political pressure” on the bank’s activities and attempts to curb its independence.

“For a long time, the National Bank of Ukraine has been under systematic political pressure. This makes it impossible for me, as the Chairman, to effectively manage the National Bank and interact with other government agencies,” he said. (Reporting by Natalia Zinets and Matthias Williams; Editing by Chizu Nomiyama)

Fed Officials Were Unconvinced on Need for Yield-Curve Control

Federal Reserve officials had “many questions” about the benefits of yield-curve control when they discussed its pros and cons during their meeting in early June.

“Many participants remarked that, as long as the committee’s forward guidance remained credible on its own, it was not clear that there would be a need for the committee to reinforce its forward guidance with the adoption of a YCT policy,” minutes published Wednesday of the June 9-10 Federal Open Market Committee meeting showed. YCT refers to yield caps or targets.

U.S. central bankers left interest rates near zero at the session, which was conducted via video conference. They also agreed to keep purchasing Treasury and mortgage-backed bonds at a pace of about $120 billion a month.

In a press conference that followed, Fed Chair Jerome Powell said officials were “not even thinking about thinking about raising rates.”

Hong Kong: UK summons Chinese ambassador over ‘deep concern’ for new security law

The Foreign Office has summoned the Chinese ambassador to make clear the UK’s “deep concern” over the new Hong Kong national security law.

Answering your vehicle-related queries

Kia Sonet launch

Abhishek, Nellore: May I know when the Kia Sonet will launch? Should I wait for it or buy the Tata Nexon? My budget is around ₹15 lakh (on road) and my previous car was a Ford EcoSport.

We have been told by Kia that the Sonet is due for launch in August or September this year, if the lockdown lifts. By all accounts, the Sonet will one of the best compact SUVs in the segment and is worth waiting for. It may not be as sporty to drive as the EcoSport but will be far more contemporary.

Buy the car

Vineeth Kumar, Bengaluru: I want to exchange my 2007 Maruti Suzuki Alto for a BS-VI Tata Tiago. The dealer said the colour I selected is available in their stockyard. Should I take that car, which is 3-4 months old, or wait for a fresh unit?

Don’t worry! For a car to lie unused for 3-4 months is no problem. Unsold stocks of some models have been in stockyards for even longer! There are systems and processes to store a car safely and spruce it up before delivery.

Brazil's Economy Ministry raises 2020 trade surplus forecast to $55.4 bln from $46.6 bln

BRASILIA, July 1 (Reuters) – Brazil’s Economy Ministry on Wednesday raised its trade surplus forecast for this year to $55.4 billion from $46.6 billion, mainly due to a steeper anticipated fall in imports than the rise in exports.

The ministry now expects imports to total $147.1 billion this year, down from its previous forecast of $153.2 billion, and exports to total $202.5 billion, up from $199.8 billion, it said. (Reporting by Marcela Ayres Writing by Jamie McGeever)

California to Close Indoor Dining, Theaters in Hard-Hit Counties

California Governor Gavin Newsom ordered the shutdown of indoor businesses including restaurants, bars, museums and movie theaters in 19 counties as the state grapples with a surge of infections from the coronavirus.

The areas affected include Los Angeles County, the hardest-hit part of the state, and in total account for about 70% of California’s population, Newsom said at a press briefing Wednesday.

After avoiding the worst of the virus’s wrath early in the pandemic, California is now grappling with an acceleration of infections. The state on Wednesday reported more than 9,700 new cases, its biggest daily jump so far. Total infections nearly doubled in the month of June, while hospitalizations are at a record.

Los Angeles County, which has more than 100,000 cases, earlier this week closed beaches and banned fireworks displays for Independence Day. Diners had been allowed to eat indoors since May 29, provided the restaurants met certain criteria.

Few industries have suffered as much during the coronavirus as food and hospitality. Restaurants across the country have closed their doors and fired staff, some temporarily and others for good.

S&P 500’s Past 100 Days Were Its Best in Almost Nine Decades

The S&P 500 has had a 100-day run for the record books.

Since bottoming March 23, the benchmark for American equities has rallied 40%, a feat not done for almost nine decades. If history is any guide, the gains have further to go, according to Bespoke Investment Group.

The S&P 500 had previously recorded only five 100-day rallies of at least 33% in its history, the firm found. Three occurred before the second World War, the other two took place in 1982 and 2009. In each instance, the index fell in the next week, but was higher three months later. It was up an average of 7.3% after six months, and 13% after a year.

“While prior experience suggests that the market may need to catch its breath following such a sharp run, it usually tacks on further gains going forward,” Paul Hickey, co-founder of Bespoke, wrote in a note.

It’s possible the market’s already endured its short-term pullback. The S&P 500 rose as much as 44% from its bottom through June 8, before volatility returned and it plunged 7.1% in three days. Stocks added 0.8% Wednesday, headed for a third straight day of gains after notching the best quarter since 1998.

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