GLOBAL NEWS:
President Donald Trump on Wednesday blasted plans to expand voting by mail in Michigan and Nevada and briefly threatened to withhold federal funding for the states, but dropped the warning after an avalanche of criticism from Democrats. Trump, who has repeatedly expressed his opposition to mail-in voting, said the expansion in Michigan and Nevada - two states that could be pivotal in his Nov. 3 re-election bid - could lead to voter fraud. Numerous studies have found little evidence of voter fraud connected to voting by mail. States have broad authority to set their own rules for voting. Many states have pushed to expand vote-by-mail options as a safer alternative in the midst of the coronavirus outbreak, sparking a growing partisan fight with Trump and his Republican allies. Trump also threatened Nevada’s federal funding, saying the state’s move to expand voting by mail created “a great Voter Fraud scenario.” Past studies by election researchers have shown neither party has an advantage in states with a history of mail balloting and where officials automatically mail ballots to all registered voters. Nevada, where the state official responsible for elections is a Republican, has made its June 9 state primaries an all-mail election and sent absentee ballots to registered voters. Nevada Democrats, who have sued to try to force Republican officials to open more in-person polling places and give voters more options, said Trump’s tweets were designed to discourage voter turnout.
Japan’s exports fell the most since the 2009 global financial crisis in April as the coronavirus pandemic slammed world demand for cars, industrial materials and other goods, likely pushing the world’s third-largest economy deeper into recession. The ugly trade numbers come as policymakers seek to balance virus containment measures against the need to revive battered parts of the economy, with the risk of a second wave of infections only complicating this challenge. The central bank will hold an emergency meeting on Friday to work out a scheme that would encourage financial institutions to lend to smaller, struggling firms. Policymakers are also considering cash injections for companies of all sizes. Ministry of Finance data on Thursday showed Japan’s exports fell 21.9% in April year-on-year as U.S.-bound shipments slumped 37.8%, the fastest decline since 2009, with car exports there plunging 65.8%. Global automakers are struggling to cope with the health crisis, which has pummelled car sales due to lockdowns in many countries. Toyota Motor Corp expects an 80% drop in full-year operating profit while Mitsubishi Motors Corp has reported an 89% drop in annual profit. The fall in overall shipments was the biggest since October 2009 during the global financial crisis, but slightly less than a 22.7% decrease seen by economists in a Reuters poll. Exports fell 11.7% in March. Exports to China, Japan’s largest trading partner, fell 4.1% in the year to April, due to slumping demand for chemical materials, car parts and medicines. Shipments to Asia, which account for more than half of Japanese exports, declined 11.4%, and exports to the European Union fell 28.0%. Japan’s economy slipped into recession for the first time in 4-1/2 years, putting the nation on course for its deepest postwar slump as the pandemic ravages businesses and consumers.
Asian shares stepped back slightly and U.S. stock futures fell on Thursday as lingering caution about the long-term impact of the coronavirus outbreak offset some of this week’s enthusiasm over re-opening of economies. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up just 0.04%, having rallied around 3% so far this week. S&P 500 e-mini stock futures fell 0.66%. Broad risk appetite has been checked somewhat by escalating tensions between the United States and China due to President Donald Trump’s criticism of Beijing’s handling of the coronavirus outbreak. Japan's Nikkei stock index slid 0.05% after data showed the country's exports collapsed in April. Shares in China fluctuated between gains and losses before the start of the annual parliament meeting on Friday. On Wall Street, the S&P 500 gained 1.67% on Wednesday, but the positive mood did not last long in Asia. U.S. crude ticked up 0.45% to $33.64 a barrel, while Brent crude rose 0.64% to $35.98 per barrel in a sign of easing concerns about a supply glut. The dollar edged higher to $1.0964 per euro and rose to $1.2202 against the British pound. The greenback also gained against the Australian and New Zealand dollars in a sign that some investors remain averse to risk. The U.S. government auctioned $20 billion of 20-year debt on Wednesday for the first time since 1986. The 20-year yield eased slightly to 1.1602% in Asia, while the yield on benchmark 10-year Treasury notes fell to 0.6639% as traders sought the safety of government debt.
Indian shares rose on Thursday after encouraging corporate earnings reports and as the government said it plans to ease curbs on air travel, in a further relaxation of a weeks-long coronavirus lockdown that has bruised the economy. The NSE Nifty 50 index was up 0.39% at 9,101.10 by 0400 GMT, while the S&P BSE Sensex was 0.36% higher at 30,929.03. Shares in Interglobe Aviation Ltd, which runs India’s largest airline IndiGo, jumped 7.6%, while second-biggest carrier SpiceJet climbed 4.9% after India announced a resumption of some domestic flights from May 25. IndiGo was the top gainer on the Nifty 100 . Better-than-expected March-quarter results from Bajaj Auto Ltd made the stock the top gainer on the Nifty 50 with a 5.8% rise. Meanwhile, ICRA late on Wednesday sharply lowered its forecast for India’s gross domestic product in 2020-21, projecting a 5% fall, deeper than its earlier estimate of a 1%-2% decline. ICRA is a local unit of ratings agency Moody’s.
Oil prices edged higher on Thursday after data showed U.S. crude inventories fell again, easing concern about a supply glut, though lingering fears over the global economic fallout from the COVID-19 pandemic capped gains. Brent crude futures for July delivery LCoc1 were trading up 17 cents, or 0.5%, at $35.92 per barrel at 0024 GMT. U.S. West Texas Intermediate crude futures for July CLc1 were up 4 cents, or 0.1%, at $33.53 a barrel. U.S. crude inventories fell by 5 million barrels last week, against expectations in a Reuters poll for a 1.2 million-barrel rise, Energy Information Administration data showed, while stocks at the Cushing, Oklahoma, delivery hub dropped by 5.6 million barrels. “While signs that WTI storage pressures are abating is positive for prices, the latest report shows that the fall in stocks owes more to supply factors than growing product demand,” Capital Economics said in a note issued on Wednesday. Prices have been boosted lately by shipping data showing the Organization of the Petroleum Exporting Countries, Russia and other allies, a group known as OPEC+, are complying with their pledge to cut 9.7 million barrels per day. OPEC itself is encouraged by the rally in prices and strong adherence to output cut pledges, its secretary general said, although sources say the group has not ruled out further steps to support the market.