GLOBAL MARKETS TODAY

US futures rebound ahead of jobless claims data; Trump

sees end to oil spat soon
Thursday, April 2, 2020 7:00 AM ET

By Aleena Haroon
Market Intelligence

MARKET SNAPSHOT

Equities: U.S. stock futures staged a rebound after equities tumbled on the first day of the second quarter, even as
markets braced for another record surge in jobless claims.

Claims for unemployment benefits, which soared to a record 3.28 million last week, are expected to hit another high of
3.35 million in the week ended March 28, according to a consensus estimate of economists polled by Econoday, with the
range of estimates running from 2 million to 4.5 million claims.

Four more states issued stay-at-home orders yesterday to contain the spread of the coronavirus, triggering fears that
unemployment claims will continue to mount as more than 80% of all U.S. residents are now subject to restrictions. The
S&P 500 tumbled 4.4% yesterday, a day after President Donald Trump warned that the health crisis could soon take a
sharp turn for the worse.

In Europe, the FTSE 100 gained 0.5% even as total confirmed coronavirus cases in the U.K. rose close to 30,000.
Europe's Stoxx 600 added 0.2% as energy shares traded higher.

In Asia, the Shanghai SE Composite rose 1.6%, led by energy and technology shares. Hong Kong's Hang Seng
advanced 0.8%, while Japan's Nikkei 225 lost 1.4%.

Currencies: The Dollar Index slipped 0.1% to 99.5310. The euro lost 0.3% to $1.0928 while the pound added 0.7% to
$1.2459. The Japanese yen was down 0.3% to 107.44 per dollar.

Bonds: The yield on 10-year U.S. Treasurys added 1 basis points to just under 0.6%, having declined earlier in the day
to as low as 0.5680%, the lowest since March 10. Ten-year German bond yields rose 4 basis points to negative 0.421%.

Commodities: Brent crude rallied 10.5% to $27.34 a barrel on the ICE Futures Exchange after Trump said yesterday
that Russia and Saudi Arabia may reach a deal to end an oil-price war in a "few days." The gold spot price slipped 0.2%
to $1,588.50 per ounce.

READ MORE: Sign up for our weekly coronavirus newsletter here, and read our latest coverage on the
crisis here.

Track real-time developments in financial markets and create custom lists for the securities you care most
about with the Market Intelligence Dashboard.
Licensed to dean.guo@arbella.com

--------------------------------------------------------------

NEWS AND ANALYSIS:

Manufacturing falls off in all G-7 countries as China factories rebound

Southwest Airlines to slash 40% of flights through early June amid pandemic

Powered by S&P Global | Page 1 of 4

 COP26 climate negotiations postponed due to coronavirus

Financials

Plunge in interest rates will prop up some US banks' book values

The recent sharp plunge in long-term rates should leave banks with plenty of gains in their securities portfolios, offering
a much needed boost to tangible book values.

Fed to exclude US Treasurys from banks' supplementary leverage ratio rule

The Federal Reserve's move is partly aimed at ensuring that banks' balance sheet growth amid a spike in consumer
deposits does not cut off their ability to lend out money.

Insurance

Downward pressure on US private auto premiums could emerge in multiple forms

Actions taken by regulators, insurers and policyholders in response to the widespread changes in driving behavior
triggered by the COVID-19 outbreak could add to top-line headwinds already facing the industry.

Permitted accounting practices could offer US insurers temporary capital relief

A tool previously used by state insurance regulators to give insurers and their investment portfolios time to bounce back
from severe financial market dislocation could provide temporary relief if fallout from the COVID-19 pandemic persists.

Energy and Utilities

Coronavirus disruptions could delay 25% of US solar installations

"The silver lining ... is that project pipelines will spill into future years, with only a marginal risk of project cancellations,"
Wood Mackenzie said.

US Forest Service reviewing environmental impacts of changing mine rules

The agency is reviewing whether it should change agency regulations that minimize environmental impacts on National
Forest System lands under the Mining Law of 1872.

Healthcare

COVID-19 ventilator shortage kicks global industries into production frenzy

Medical companies are partnering with automakers and academia to help combat the shortage of ventilators worldwide.

Chatbots provide health information, recommendations during COVID-19 uncertainty

As COVID-19 continues its spread across the U.S., hospital systems, tech start-ups and the government are using
Licensed to dean.guo@arbella.com

chatbots and online self-assessment tools to guide users to the medical resources they need and to free up hospital
resources.

Consumer

US FTC sues Altria to unwind $12.8B investment in Juul

The Federal Trade Commission is alleging that Altria "orchestrated" its exit from the e-cigarette market and became
Juul's largest investor, thereby eliminating competition.

Powered by S&P Global | Page 2 of 4

 Fiat Chrysler's US sales drop 10% YOY in Q1

The Michigan-based automaker said the ongoing coronavirus outbreak negatively impacted its March numbers.

Technology, Media & Telecommunication

Update: T-Mobile closes Sprint merger without final Calif. regulator approval

The company announced in a release that it expects the deal to result in at least $43 billion in synergies for all
shareholders.

COVID-19 may not delay Apple's 5G iPhone, but demand risks loom

Many analysts do not expect the COVID-19 outbreak to significantly delay Apple's 5G iPhone launch, but they said
current economic uncertainties and a general lack of knowledge about 5G's capabilities could hurt sales.

Metals and Mining

Newmont to ramp down operations at Mexico's Penasquito gold mine

The company is not able to determine the full impact of the ramp down on Penasquito's production and costs for 2020.

Wheaton withdraws FY'20 production guidance as coronavirus forces mine closures

There is potential for other partners' operations to be temporarily suspended in the future for indeterminate amounts of
time, including other Mexican mining operations.

Real Estate

US housing market: Existing home sales, housing starts jump in February

Existing home sales and single-unit housing starts both grew on a month-over-month basis in February, according to
recently released data, while new single-family home sales dropped 4.4% month over month.

SoftBank confirms cancellation of US$3B WeWork deal

The Japanese conglomerate said certain conditions to the tender offer were not satisfied, including securing antitrust
approvals by April 1.

--------------------------------------------------------------

ECONOMIC INDICATORS:

U.S.

10:00 a.m. ET — Factory Orders

Licensed to dean.guo@arbella.com

10:30 a.m. ET — EIA Natural Gas Report

4:30 p.m. ET — Fed Balance Sheet

4:30 p.m. ET — Money Supply

Hong Kong

Powered by S&P Global | Page 3 of 4

 8:30 p.m. ET — PMI

Japan

8:30 p.m. ET — PMI Composite

Singapore

8:30 p.m. ET — PMI

Australia

8:30 p.m. ET — Retail Sales

China

9:45 p.m. ET — General Services PMI

--------------------------------------------------------------

EVENTS TO WATCH:

U.S.

1:00 p.m. ET — Fed's Neel Kashkari Speaks

--------------------------------------------------------------

EARNINGS:

Before market open

Walgreens Boots Alliance Inc.

After market close

Franklin Covey Co.

This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately
managed division of S&P Global.
Licensed to dean.guo@arbella.com

Powered by S&P Global | Page 4 of 4