Is it really that time already? Our weeks seem to be blending into one slushy lump at the moment. So yes, it’s time for your weekly dose of all things financial to set you up for the trading week ahead. We’ll run some brief analysis on 5 companies that are struggling at the moment, before dishing up the events you need to watch this week.
It’s been a long quarter
Q1/2020 is now officially done. If you blinked, you would’ve missed it. And the instruments on the upcoming list certainly wish they had missed it! Before we start, we wanted to make it clear that the human impact of coronavirus is, always of primary importance. As we are a financial services marketing company, we will today focus on the economic repercussions of the global pandemic.
There are a number of instruments that have seen their value tumble of late. Let’s take a closer look.
1. Walt Disney Co (DIS)
Price on 02.01: 148.20 USD
Price on 03.04: 93.88 USD
Percentage change: -36.59%
Reason: Coronavirus has not been kind to Disney. The gigantic entertainment company had to close its theme parks, sports have essentially disappeared from ESPN (it’s sport-streaming arm), and production has stalled on several of its high profile movies and TV shows. Hawkish investors will point to the success of the company’s European launch of Disney+ as a reason to remain buoyant, but there’s little to be happy about here.
2. eBay Inc (EBAY)
Price on 02.01: 36.30 USD
Price on 03.04: 29.41 USD
Percentage change: -18.98%
Reason: Okay, not the biggest loss on this list, but eBay’s stock is taking hits of the lingering kind. The company has suffered as countries remain on lockdown. Supply and demand are taking a hit as industries have halted production, and consumers are currently focusing solely on essential products, not the kind of thing eBay prides itself on. Q2 (or even Q3?!) might be another long one for the California based e-commerce giant.
3. AMC (AMC)
Price on 02.01: 7.46 USD
Price on 03.04: 2.27 USD
Percentage change: -69.57%
Reason: As you know, governments across the globe are currently restricting their citizens from gathering in large groups. It’s no surprise, then, that the world’s biggest cinema company has been dealt a pretty horrific blow of late. AMC’s stock price has shrunk by just under 70%. How long can such unbelievable losses be sustained?
4. Oil (Brent)
Price on 02.01: 66.25 USD
Price on 03.04: 35.11 USD
Percentage change: -50.16%
Reason: Most of us are in lockdown, which means we don’t need to move too much and, therefore, we’re not craving the Black-Stuff like we usually do. Interestingly, it’s not just coronavirus that’s ravaging the oil market right now. Disagreements between OPEC nations at an emergency summit on the 5th of March have flared tensions and basically led to a bit of production competition between Russia and Saudi Arabia. Almost no demand + increased production; it’s only going one way, folks!
Source: Business Insider
5. Volkswagen (VOW3)
Price on 02.01: 180.50 USD
Price on 03.04: 98.91 USD
Percentage change: -45.2%
Reason: It’s not just VW, the whole auto industry is out of whack, largely thanks to the pandemic. As the German car supremo is the most supreme automobile supremo on the planet, we figured it would make our point quite nicely. Almost all car manufacturing has ground to a halt on both sides of the Atlantic. VW has been joined by BMW, the Mercedes-Benz parent Daimler, Porsche, the PSA Group, Renault, Fiat Chrysler Automobiles, Ford, Ferrari, Lamborghini, Nissan, and Rolls-Royce in the manufacturing shutdown.
This week’s market events
Here’s where you need to watch this week.
● Monday’s OPEC meeting (USD) is a good place to start!
● Tuesday is a red-letter day for Aussie traders, with the RBA’s Interest Rate Decision and Statement (AUD) being made.
● We’ll have a busy day on Thursday, which includes a speech from the Governor of the Bank of Japan (JPY); the US’ Initial Jobless Claims (Apr 3) (USD); the latest Canadian unemployment stats (CAD); and, finally, the Michigan Consumer Sentiment Index (USD).
● Lastly, Friday will feature the Chinese Consumer Price Index (YoY) (CNY); and the US’ Consumer Price Index ex Food & Energy (MoM + YoY) (USD).
The Contentworks team