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[SMM Steel Market Morning News] the Ministry of Finance plans to issue special bonds ahead of schedule * WTI5 month crude oil futures fell into negative value
Apr 21,2020 08:59CST
The content below was translated by Tencent automatically for reference.


Tuesday, 21 April 2020

Breakfast news

Rising factor

1. Ministry of Finance: in the near future, it is planned to issue another 1 trillion yuan of special local government bonds in advance.

Budget Division inspector Wang Kebing said at a news conference on April 20 that he recently planned to issue a further 1 trillion yuan in special local government bonds in advance. At present, the Ministry of Finance is guiding all localities to correspond the quota of special bonds to specific projects as soon as possible, organize preparations for the issuance of bonds, and strive to complete the issuance by the end of May. As of April 15, 1.5691 trillion yuan of new local government bonds had been issued throughout the country, accounting for 85 per cent of the amount issued in advance. Beijing, Tianjin, Liaoning, Ningbo, Anhui, Fujian, Jiangxi, Shandong, Guangdong, Shenzhen, Sichuan, Guizhou, Yunnan, Tibet and Gansu have all completed the issuance of new local government debt limits in advance.

2. The National Development and Reform Commission: actively stabilize the traditional bulk consumption of automobiles, household appliances and other residents

The NDRC said that in the case of hindered external demand, it must firmly implement the strategy of expanding domestic demand to provide support for stabilizing the basic economic market. In terms of promoting consumption, the focus is on actively stabilizing the traditional mass consumption of automobiles, household appliances, and other residents, appropriately increasing public consumption, and at the same time complying with the general trend of escalation of household consumption and the new demand emerging during the epidemic period. we will vigorously cultivate new consumption growth points such as green consumption, information consumption, digital consumption, intelligent consumption, and healthy consumption, promote the growth of online consumption, and accelerate offline consumption to make up for it.

3. Positive results of the first New Crown Vaccine Animal experiment data

Studies by the Qinchuan team of the Chinese Academy of Medical Sciences have shown that the vaccine can induce specific neutralizing antibodies in mice and non-human primates, which effectively neutralize 10 representative SARS-CoV-2 strains. Studies have shown that the vaccine is safe.

Falling factor

1. Moody's cut its 2020 global car sales forecast three times in Europe and the United States

At present, the supply and demand side of the automobile industry in Europe and the United States has not improved significantly. It is worth noting that Moody's, the credit rating agency, has cut its global car sales forecast for 2020 three times this year. Moody's expects global car sales to fall 14 per cent in 2020. According to media reporters, CEO Thunder, an Austrian automotive consultancy, said in an interview with reporters a few days ago that it hoped to return to its previous production level in July and August. Many car companies aim to achieve the planned annual production level by the end of the year, but restarting production in the entire car value chain may be more challenging than expected.

2. Three major indices of US stocks collectively closed down WTI5 month crude oil futures "historically" fell into negative territory.

On Monday, the three major indexes closed down, with the Dow down nearly 600 points, or 2.44%, while the S & P 500 closed down 1.79% and the Nasdaq closed down 1.03%. WTI crude fell to a "historic" negative for the May contract, falling as low as-$40 a barrel in intraday trading. In addition, crude oil contracts fell by more than 15% in June. The futures price of light crude oil for May delivery closed at-$37.63 a barrel on April 20, down 305.97%.

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