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(FS.5.08) Markets & Instruments

[New] S&P Global Ratings in May forecast GDP growth of 1.2% for China, noting that China is healing, gradually and expecting stimulus to be restrained this year.
[New] Global gold production declined last year for the first time in a decade, but before the outbreak S&P Global was expecting around 2m in additional ounces to be poured this year for a total just shy of 108m ounces.
[New] Investor's (and MSCI) minds would be eased if Vietnam will aggressively pursue regulatory reform and potentially add another US $ 15 billion to their capital markets.
The European Central Bank has introduced an extraordinary bond-buying programme of private and public securities totaling 750 billion euro (of which 220 billion in Italian bonds, equivalent to 12% of national GDP) to stabilize financial markets and mitigate risks of growing interest rates.
BMO Capital Markets expects more softening over the next two quarterly periods for YouTube, down 24% year over year in the second quarter to an estimated $2.7 billion, and a 12.1% drop in third-quarter 2020.
S&P expects rising oil and gas production in Oman from 2020, and that growth in the non-oil sector will drive real GDP growth of 2.4 per cent on average between 2020-2022.
S&P Global Platts Analytics has lowered its full-year forecast for Permian Basin gas production by nearly 0.2 Bcf/d from the level expected in March.
Our revised year-end 2020 fair value target for the S&P 500 of 3,150-3,200 is based on a P/E of 18, supported by lower interest rates and S&P 500 EPS in 2021 of $175, a slightly above-average earnings growth forecast for next year coming off potentially depressed profits in 2020.
S&P Global Platts Analytics now sees 2020 global oil demand contracting by 7.8 million b/d, revised down from a 4.5 million b/d decrease in its March outlook: Oil demand is now projected to contract in every month through December.
Appreciation in the S&P 500 next year will be driven by easier monetary policy, trade deal progress and positive sentiment around the 2020 elections.
Well, the earnings of the S&P 500-which had already registered zero growth from 2018 to 2019-are in real danger of falling materially in 2020 as COVID-19 hits the global economy.
Goldman Sachs predicts that share repurchase authorizations will fall another 5% in 2020, and for good reason, given that in 2019, S&P 500 companies paid out more than 100% of their free cash flow in the form of dividends and buybacks.
Assuming the global economy expands by just over 3% next year, then S&P Global Platts Analytics expects oil demand could grow by around 1.24 million barrels per day in 2020.
The original report recommended that there should be at least one non-white director on the boards of FTSE 100 companies by 2021, and at least one non-white director on the boards of FTSE 250 companies by 2024.
Almost 60 percent of companies in the S&P 500 (market capitalization of $18 trillion) and more than 40 percent in the S&P Global 1200 ($27.3 trillion) hold assets at high risk of physical climate change impacts.
Market players are hoping that 2020 will be a much better year for the domestic capital market, particularly the stock market, as Indonesia's political landscape is expected to stabilize and companies seek to enjoy higher earnings growth.
RBC Capital Markets expects European auto production to drop as much as 4 percent this year, while LMC Automotive analysts have penciled in as much as a 4.4 percent global decline in auto sales in a worst-case scenario.

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Last updated: 26 May 2020