5 Important Developments in Knowing the Markets on Thursday

5 Important Developments in Knowing the Markets on Thursday

OPEC was reported to have agreed in principle on a 1.5 million barrel discount per day in response to collapsed demand. The agreement still needs Russia's participation. The global airline industry agency said the loss of revenue from the coronavirus outbreak could be almost $ 113 billion, almost four times the initial estimate. The House of Representatives has accepted a $ 8.3 billion aid package to control and treat the disease, but markets are still declining, and US exchanges are on track to lose half of their gains on Wednesday. Here's what you should know in the financial markets on Thursday, March 5: 1. OPEC proposes major production cut agreement with Russia OPEC ministers reportedly agreed to cut 1.5 million barrels a day from current levels to balance crude oil production with collapsing demand. First, the agreement reported by Reuters is tied to the cooperation of Russia and others. Countries that are not OPEC members of OPEC + will also discuss this on Friday. Despite the obvious deterioration in the demand, it was stated that Russia pressured to keep production stable in the first quarter with the desire to prevent the USA from earning from its global market share. US production rose to record levels last week, and US exports remained on the uptrend. US crude oil futures increased by 50 cents on developments but then lost some of them and traded at $ 46.80. Brent rose 0.1% to $ 51.23. 2. The Assembly approved the Covid-19 spending measure; Trump continues to show disease trivial  The House of Representatives approved the $ 8.3 billion spending package to control and treat the coronavirus in the U.S. The number of detected cases concentrated in a single region of Washington state in the USA has increased to 153 and the death to date has increased to 11. Describing the coronavirus as a game of Democrats and saying the number of cases will fall from 15 to "two" last week, President Donald Trump downplayed risks to Americans again in an interview with Fox News on Wednesday. 3. US stock markets will open low with continued global warnings Dow dropped 480 points, while S&P 500 fell 0.2% and Nasdaq 100 fell 1.9%. In Europe, the Stoxx 600 index fell 1.6%. Car supplier Continental (DE: CONG), which said that its global production will experience a 5% decrease due to the coronavirus epidemic, issued a coronavirus warning. Hugo Boss (DE: BOSSn) and ITV (LON: ITV) also warned of their income. 4. IATA again alarm for airlines (only slightly higher alarm) The International Air Transport Association (IATA) has expanded its assessment of the economic coup for airline businesses due to coronavirus. IATA said in a statement this year that it saw the total loss of revenue in the industry at $ 113 billion - almost four times the previous figure, estimated at $ 29 billion. Airlines in the major Asian-Pacific markets can take the biggest blow, with revenue loss of $ 50 billion. He predicted that Europe might experience losses up to 44 billion dollars, while the effect on the USA and Canada could be smaller with $ 21.1 billion. On the other hand, IATA stated that savings from low fuel prices will not exceed $ 28 billion. “The airline industry will need comforting statements on tax, penalty and slot allocation,” said IATA director Alexandre de Juniac. We are in extraordinary times. ” On Wednesday, the largest regional airline in Europe, Flybe - was already experiencing profitability problems for a long time - collapsed after the British government blocked the bailout plan. 5. Durable goods and unemployment applications will be announced; retail sales are at the center of attention The US data calendar is calm; There are February orders for durable goods and weekly unemployment applications. Costco (NASDAQ: COST) and Kroger (NYSE: KR) dominate with similar weak gains. Even though the markets expect another action at the Fed's March meeting, St Louis Fed President James Bullard spoke these hopes in an interview with Bloomberg. Dallas Fed President Robert Kaplan will speak at 18:30 local time prior to Fed's traditional meeting. Andy Haldane, chief economist of the Bank of England, will speak in Europe. Source: Investing.com