Archives of “June 22, 2020” day

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European major indices end the session in the red

  
Analysis, Global Indices

German DAX, -0.7%, France’s CAC, -0.7% and UK’s FTSE -0.7%

The major European indices are ending the session in the red. A look at the provisional closes are showing:

  • German DAX, -0.7%
  • France’s CAC, -0.7%
  • UK’s FTSE 100, -0.7%
  • Spain’s Ibex, -1.4%
  • Italy’s FTSE MIB -0.7%
in the European debt market, the benchmark yields are also lower. Italy leads the way with a -6.9 basis point decline. France’s yields are down -3.2 basis points. Yields are ending the session near the lowest levels.
German DAX, -0.7%, France's CAC, -0.7% and UK's FTSE -0.7%_

Gold on track for highest close since 2012

  
Analysis, Gold / Silver

Intraday high still $10 away

Gold chart
Gold is up $12 to $1756 on the day and at that level it would be the highest close since 2012.
The intraday high of $1765.43 is the more-important level. It was reached on May 18 but on that day after tagging the high, gold reversed to finish at $1732 and we’ve been stuck in the range ever since.
A break higher could spark a massive run in gold. All the conditions are aligned with high uncertainty, massive monetary easing and unprecedented government spending. All it needs now is a bit of momentum.

Credit Suisse to delist 9 of its highly-leveraged ETFs

  
  Analysis

TVIX and UGLD on the chopping block

Credit Suisse is shutting down some of its most-popular products. Exchange traded notes tied to gold, silver, natural gas and the VIX will be delisted July 11 and no further notes will be issued starting today.
This was the sole reason given:
As part of its continuing effort to monitor and manage its suite of exchange traded notes, Credit Suisse AG has decided to delist the foregoing ETNs with a view to better align its product suite with its broader strategic growth plans.
On the chopping block:
  • UGLD
  • USLV
  • DGLD
  • DSLV
  • UGAZ
  • DGAZ
  • ZIV
  • VIIX
  • TVIX
TVIX (triple VIX) and UGAZ (triple natural gas) are two of the top-20 most popular ETFs on Robinhood. Combined there are more than $2 billion invested in those two. You wonder if the money invested in some of these products makes its way into individual stocks and if taking some liquidity away from VIX products has any effect.
This should have been done immediately after the XIV blowup. You have to wonder if there were losses that triggered it. Here is the full release.

5 reasons AUD/USD is going to 0.7400

  
Analysis, Forex

Morgan Stanley’s latest out look report project the Australian dollar to 0.74 in 2021

MS look for what they describe as “front-loaded gains” for AUD:
  • Australia will outpaces developed market peers on economic growth
  • should also benefit from expansionary fiscal policy
  • RBA to be relatively-less-dovish
  • Australia is open to positive growth areas like manufacturing-sensitive Asia
And, further:
  • high carry should also make it an attractive destination for yield-seekers
By 2021 other economies should have caught up to Australia.
After that “Australia’s structural economic challenges related to household indebtedness and deleveraging once again come into focus”, which will halt the AUD gain around 0.74.

Trump to order new restrictions on H-1B visas by Monday

  
  Analysis
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Trump spoke with a Fox interview Saturday, flagging the expected visa cutbacks will be announced.

  • plan to restrict employment-based visas could affect an estimated 240,000 people
  • across technology, finance & hospitality
  • won’t affect certain workers who are already in the US
  • will be very few exclusions
  • “In some cases you have to have exclusions. You need them for big businesses where they have certain people that have been coming in for a long time”
Trump visa

White House trade adviser Navarro says preparing for a second wave of coronavirus

  
  Analysis
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Navarro saying the US is taking a prudent course to prepartefor any 2nd wave.

  • “We are filling the stockpile in anticipation of a possible problem in the fall”.
  • “You prepare-you prepare for what can possibly happen. I’m not saying it’s going to happen, but of course you prepare.”
Navarro was speaking on CNN over the weekend.
Meanwhile the US is seeing a resurgence in cases, cases, hospitalisation are all accelerating. You’ll hear folks shrug off the surging caseload as ‘more testing’ but hospitalisations cannot be dismissed in this way.
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