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Morning Note: What’s Moving Markets around the world.

Crude oil pared Thursday’s 22% jump, which came after Donald Trump said Russia and Saudi Arabia would cut production. On Friday, oil prices pared some of those gains with Brent crude, the international benchmark, down 2.2 per cent to $29.29 a barrel. US marker West Texas Intermediate fell 4 per cent to $24.30.

Stocks sank in Australia and Hong Kong, while South Korean shares fluctuated. Early gains in Japan gave way to losses, while S&P 500 futures fell about 1%. The new coronavirus has now infected 1 million people across the world, just four months after it first surfaced. The yen fluctuated and the euro retreated. With lockdowns for many economies around the world expected to go on longer, economic data are showing the severity of the impact.

In Kenya, data shows that local lenders are overexposed and they fear continuing operating in the dark, with no way of predicting the scope or duration of the pandemic or the damage it will wreak on the economy. If the virus recedes soon and the economy roars back to life, then the plan will help borrowers by the government will get back on track quickly. The greater the fallout, the harder and more expensive it will be to stave off repossessions.

The NSE remains exposed with the rising cases of the Corona Virus in the country. The sense of global markets taking a hit brings comfort home as foreign investors run from developed markets to frontier markets. This is good untill they start to flee. Local investors may hold activity but only for so long.

Here’s how global markets performed overnight:

Stocks

  • Futures on the S&P 500 fell 1.2% as of 5:15 a.m. in London. The gauge rose 2.3% on Thursday.
  • Japan’s Topix Index slid 0.2%.
  • Australia’s S&P/ASX 200 Index dipped 1.5%.
  • Euro Stoxx 50 futures slipped 0.3%.
  • Hang Seng Index fell 0.6%.
  • Shanghai Composite Index slipped 0.3%.

Currencies

  • The yen fell 0.1% to 108.01 per dollar.
  • The offshore yuan slipped 0.1% to 7.0969 per dollar.
  • The euro fell 0.1% to $1.0850.

Bonds

  • The yield on 10-year Treasuries was little changed at 0.59%.
  • Australia’s 10-year yield remained at 0.77%.

Commodities

  • West Texas crude fell 4.8% to $24.11 a barrel after surging 22% Thursday.
  • Gold fell 0.1% to $1,612.33 an ounce.