Asahi with the report (via Bloomberg)
Tokyo has seen renewed outbreaks but up until now had been chilled. according to Asahi that appears ready to change.
Archives of “July 2020” month
rssECB meet this week (preview) but they are already driving the higher euro
As was noted during the US time zone, EUR/USD pierced 1.14. A factor that appears to have flown under the radar is this sign of (continued) aggressive policy support from the ECB, that is:
- ECB corporate bond-buying was up 3.3bn EUR last week, which is around 400m higher than the previous record high over the past 4 years operation of the Bank’s corporate bond purchasing program
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ps, ICYMI, the EU Recovery Fund will be the discussion point of note for markets in the ECB meeting Thursday
- financing totalling up to EUR750 bn, split between grants of EUR500 billion and loans of EUR250 billion
- Netherlands, Austria Denmark and Sweden want to reduce the amount of funds distributed as grants
Trump says he is not interested in speaking with China on another trade deal
Whiny biatch speaking in a CBS interview Sry, damn autocorrect. Trump speaking in a CBS interview.
So far he has been whining about getting schools reopened and various grievances he has with life.
Comment on China the only one really pertaining to markets, so far at least.
More from Trump:
- We can impose massive tariffs on China f we want
- You’ll see more coming on actions towards China
- China is buying a lot of agricultural products
Strong close for US stocks
Major indices close at session highs
Today saw the stock market rotate into the Dow and broader S&P indices. The tech heavy NASDAQ was the laggard. However a late day surge “raised all boats”. The Dow had its best day since June 29. The dow rose for the 3rd day in a row.
The final numbers are showing:
- S&P index rose 42.39 points or 1.34% to 3197.61
- NASDAQ index rose 97.73 points or 0.94% to 10488.53
- Dow industrial average rose 557.72 points or 2.14% at 26643.53
Leading the Dow 30 were:
- Caterpillar, +4.96%
- Travelers, +3.8%
- Chevron, +3.49%
- Exxon Mobil, +3.31%
- Home Depot, +3.25%
- McDonald’s, +3.19%
- UnitedHealth, +2.96%
- Goldman Sachs, +2.58%
- Boeing, +2.48%
Other big gainers today included:
- First Solar, +9.96%
- Alcoa, +9.47%
- Rite Aid, +7.57%
- Schlumberger, +5.81%
- Ford Motor, +5.12%
- NVIDIA, +3.31%
Laggards included:
- Wells Fargo, -4.55%
- Intuit, -4.13%
- Citigroup, -3.93%
- Slack, -3.14%
- LYFT, -3.02%
- Delta Air Lines, -2.61%
- Uber, -2.51%
Thought For A Day
Fear and Greed
Greed and fear are borne from the same parents. They feed on each other. A falling market prompts more selling just as a rising market feeds on itself.
It’s a concept that I just had to learn myself.
Why do stocks that are undervalued continue to be undervalued?
Why do stocks that are overvalued continue to be overvalued?
These momentum types of traits are of the same nature.
Fear prompts more aggressive panic selling ; that’s why stocks that are already slumping continue to be sold and enter a vicious cycle ;
Could be margin calls causing them to fall even further .
This same self reinforcing process operates in the same way on why stock prices can be propelled into the stratosphere. A great story can go on forever whenever the herd mentality is strong. Investors copy each other buying and selling. Greed prompts more euphoria until the loudest and most vociferous voice of the bull market must admit that the honeymoon is over and when it happens; it is a sobering and humbling experience.
When these happen; the most conservative option is to cut costs and hope for the best.
European shares end the session with declines
UK FTSE outperforms
The European shares are ending the session with declines. The UK FTSE 100 the better than others on the GBPs weakness.
The provisional closes are showing:
- German DAX, -1.06%
- France’s CAC, -1.25%
- UK’s FTSE 100, -0.10%
- Spain’s Ibex, -1.02%
- Italy’s FTSE MIB, -0.7%
In the European debt debt market, the benchmark 10 year yields are ending lower across the board. Declines range from -2.7 basis points to -3.6 basis points:
In other markets as European traders look to exit:
- spot gold is trading up $6.05 or 0.34% at $1808.82. The low extended to $1790.79. The high for the day is near current levels at $1809.74
- WTI crude oil futures are trading up $0.31 or 0.77% at $40.41 for the August contract. The September contract is also higher by $0.33 or 0.82% at $40.65
In the US stock market the Dow industrial average outperforms while the NASDAQ index get whipped around and volatile trading. The current snapshot shows
- S&P index up 12.8 points or 0.41% at 3168.16
- NASDAQ index down 2.6 points or -0.02% at 10391.16
- Dow industrial average up 288 points or 1.11% at 26374
The NASDAQ index has whipped around in with the low falling -2.01%. The high extended up 0.42%. The point range is around 250 points from low to high.
The history of globalization.
OPEC: Sees demand falling 8.95 mbpd this year, rising by 7 mbpd in 2021
Highlights of the OPEC monthly oil report
- Sees 2020 demand -8.95 mbpd vs -9.07 in prior report
- Sees US output down 1.37 mbpd this year; +0.24 mbpd next year
- Oil stocks are 210 million barrels above 5-year avg
- Efficiency gains and remote working to cap demand rise in 2021 to below 2019 levels
A separate report, citing delegates, sees OPEC+ June compliance at 107%.
UK government announces ban to Huawei from the country’s 5G networks
Confirmation by UK culture minister, Oliver Dowden
- Telco companies to be barred from buying Huawei equipment from 2021
- UK pledges to remove Huawei equipment by 2027
- Huawei ban will delay, add costs to 5G rollout
- The requirement will be set out in law
Dowden is alluding to the fact that US sanctions have made it hard to come to a decision to continue dealing with Huawei, but this just adds to the divide between the UK and China as well amid the recent Hong Kong row.
But in any case, this will also just heighten tensions between China and the US, UK further.