(Bloomberg) -- European stocks rose with U.S. equity futures on Thursday as investors caught their breath following a rough start to the second quarter for risk assets. Oil surged after China unveiled plans to boost its reserves.The Stoxx Europe 600 Index climbed, led higher by energy shares as the world’s biggest importer took advantage of a 60% plunge in oil this year to add to stockpiles. Brent crude futures jumped about 12% on the report. Futures on the main U.S. equity benchmarks all advanced following another session of steep declines. Stocks in Asia were mixed, with declines in Japan and Australia, and gains in South Korea. Treasuries slipped along with the dollar.After enduring their worst quarter since 2008, stocks are struggling for traction as companies move to slash dividends and more U.S. states enact severe restrictions on people movement amid the coronavirus pandemic. Fatalities rose in France and Spain, while Italy...
(Bloomberg) -- Oil surged more than 12% as China planned to start buying up cheap crude for its strategic reserves, adding to tentative signs of growing risk appetite across financial markets that’s propelling prices higher.Futures extended gains as Beijing instructed government agencies to start filling state stockpiles after oil plunged 66% over the first three months of the year. China’s move comes as the physical crude market shows deepening signs of strain as supply explodes and demand collapses due to the coronavirus.Dated Brent, the benchmark for two-thirds of the world’s physical supply, was assessed at $15.135 on Wednesday, the lowest since at least 1999. Crude has slipped below $10 in some areas including Canada and shale regions in the U.S., while some grades have posted negative prices.China’s purchases are likely to help soak up some excess oil as the market faces an unprecedented collapse in consumption. Top trader Vitol SA said...
Cloud-based commerce platform Shopify (SHOP) is suspending financial guidance, in light of the uncertainty related to Covid-19. However, Shopify did note that it anticipates Q1 revenue and adj. op. income in line or above guidance provided on February 12, thanks to strong sales momentum through January and February.“Shopify’s withdrawal of FY20 guidance suggests that near-term visibility is low, similar to other Internet stocks in our coverage” comments RBC Capital analyst Mark Mahaney.Nonetheless, he has retained his buy rating on the stock. “Long-term, however, we believe that Shopify will be a beneficiary as we expect this COVID disruption to lead to a sustained pickup in online shopping activity, with Shopify a major beneficiary” the analyst explains.As a result the analyst leaves his $650 price target on SHOP unchanged, translating into significant upside potential of almost 70%. Overall, the stock has a more cautious Moderate Buy analyst consensus with a $522 average analyst price...
General Electric Co. (GE) has finalized the $21.4 billion sale of its biopharma business to Danaher Corp. (DHR).The sale to Danaher Corp gives GE net proceeds of $20 billion, after accounting for taxes, fees and factored receivable balances, GE said in a statement.“Completing the sale of BioPharma represents a critical milestone on our multi-year transformation, fortifying our considerable sources to de-risk our balance sheet and continue to solidify our financial position,” GE Chairman and CEO H. Lawrence Culp, Jr. commented.The shares dropped 11% to $7.04 at the close of trading in New York on Wednesday. GE stock has declined over 40% this year as the coronavirus pandemic sent stocks tumbling across the globe. Citigroup analyst Andrew Kaplowitz yesterday lowered GE's price target to $11 from $15, while maintaining a Buy rating.Read More: General Electric’s Aviation to Cut 10% of Workforce as Air Travel Demand FreezesOverall Wall Street analysts are slightly cautious about recommending...
(Bloomberg) -- American intelligence officials concluded that China concealed the extent of the outbreak there. The Pentagon aims to provide as many as 100,000 body bags for civilian use in the U.S.New York and New Jersey said deaths have doubled in three days. Florida finally ordered residents to stay at home, while Los Angeles’ mayor asked the whole city to wear masks outside. Meanwhile, a county in central China went back into lockdown after a flareup in infections.BP Plc joined companies including Tesla Inc. and Qantas Airways Ltd. managing infections in their workforces, and struggling Boeing Co. is expected to start paying off staff. The U.K.’s top market regulator proposed freezing credit-card debt as welfare claims mount.Key Developments:Global cases top 937,000; 47,000 dead: Johns HopkinsYoung age of many New York patients surprises doctorsLocked up, beaten and shamed: virus laws lead to abuseEuropeans see hope in Italy’s case stabilizationTB vaccine may hold...
(Bloomberg) -- When people are worried about the future they turn to gold to protect their savings. That’s rarely been more true than today.Surging demand and disruptions from the coronavirus pandemic have created a shortage of the small gold bars most popular with consumers. Those who do manage to get their hands on metal have to pay up –- well above the per-ounce prices being quoted on financial markets in London and New York.Some dealers are desperately contacting clients to see if anyone is willing to sell their gold bars and coins, and offering a rare premium over spot prices. Others have given up trying to trade altogether.“People want to buy, not to sell gold,” said Mark O’Byrne, the founder of GoldCore, a dealer based in Dublin. “We have a buyers’ waiting list and we emailed our clients seeing who wished to sell their gold. At this time there is roughly...
