Syed Zaki HussainTop five things to know before market open on May 08th, 2020
1. Lockdown to be eased in phases starting May 9: PM: Prime Minister Imran Khan announced on Thursday that the National Coordination Committee (NCC) has decided to lift lockdown across the country from May 9 (Saturday) in phases.
2. Covid-19 to break the nexus between US and Asian Financial Markets: “Being long Asia versus short U.S. volatility doesn’t work anymore, Hedge Funds burned trades which were source of their livelihood for decades. Heijboer thinks that March was just a blip and that the historical U.S.-Asia volatility relationship might reassert itself, else secluded Financial Market may be a new normal for the global financial markets.
3. China turns out to be a lender of last resort for US Markets: Dollar-denominated exports from China, unexpectedly rose in April for the first time this year, climbing 3.5% from a year ago. China is said to have amassed extremely low-priced oil during the recent price-war and likely to retain an edge over US in the post COVID era. U.S. Analysts at wall street are firm that Futures were Higher because of Chinese Exports and US import Data despite propagated trade-war.
4. Coronavirus update: U.S. death toll tops 73,000: Trump administration shelves ‘too cautious’ CDC guide to reopening. On Wednesday, the president backed off plans to wind down the task force including in states that have started to allow small businesses and shops to reopen. Trump acknowledged that reopening will cause more deaths, but has pressured state governors to move quickly to restore an economy that has been hit hard by stay-at-home orders.
5. Forex outflows from Insurance Sector to be discouraged: Securities and Exchange Commission of Pakistan has proposed to restrict the outflow of money for reinsurance. Delinking reinsurance requirement of collateral would help save foreign exchange and localization of insurance risks.
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