Archives of “September 22, 2020” day

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European shares end the session with mixed results

  
Analysis, Global Indices

German Dax up 0.4%. France’s CAC unchanged

The European shares are closing with mixed results. The provisional closes are showing:

  • German DAX, +0.4%
  • France’s CAC, unchanged
  • UK’s FTSE 100, +0.7%
  • Spain’s Ibex, -0.4%
  • Italy’s FTSE MIB, +0.80%
In the European debt market, the benchmark 10 year yields are ending the session mixed as well. Germany, France, and UK yields are higher, while Spain, Italy, and Portugal yields are lower.
European yields are ending nextIn other markets as London/European traders look to exit are showing:
  • spot gold is down $13.75 or -0.72% $1899.20
  • spot silver is down $0.37 or -1.53% at $24.34
  • WTI crude oil futures are trading up $0.15 or 0.3% at $39.46
In the forex market, the USD has taken the lead and is the strongest of the major currencies (see the strongest and weakest from the start of the North American session by clicking here). The GBP and AUD are the weakest.  For the GBPUSD, the pair has moved back toward its 100 and 200 day moving average is 1.2720 area. The price is just below that level as I type at 1.2716.

UK PM Johnson: We have reached a perilous turning point on the coronavirus

  
  Analysis

UK prime minister, Boris Johnson, outlines new coronavirus restrictions as he speaks in parliament

BoJo

  • Schools, colleges, and universities will stay open
  • This is by no means a return to the full lockdown in March
  • Businesses can stay open in a compliant way
  • Office workers who can work from home should do so
  • From Thursday, all pubs, bars, and restaurants must operate a table service only
  • They must close at 10pm, this applies to all hospitality venues
  • Businesses will be fined if they breach the rules
  • Maximum of 15 people can attend weddings now
  • We should assume unless there is progress, the restrictions go on for 6 months
As far as restrictions go, these aren’t really that harsh all things considered. In some countries, these are even standard protocol over the last few months. But again, this is more to do with managing public expectations and trying to find a ‘new normal’.
Johnson says that they could introduce greater restrictions if this does not work but so far they have been rather reluctant to jeopardise the economy for the most part.
Let’s see if this will be enough to strike a balance between addressing the health crisis and keeping the economy running at its current pace.
The mention of restrictions lasting up to 6 months is chipping away at the pound a little as cable falls to 1.2820 from around 1.2840 levels when he started speaking.

US futures creep higher on the session

  
  Analysis

US futures turning around after a softer start

S&P 500 futures are up ~0.1% now while Nasdaq futures are leading the charge, gaining by ~0.6% after having been down by about 0.7% earlier in the day:
Nasdaq
The late surge in US equities yesterday is keeping things interesting, with the Nasdaq having nearly erased all of its losses to close just 0.1% lower:
Nasdaq

So far, the risk mood is looking in better shape than it was a few hours ago and that could spur some confidence in dip buyers as we look towards North American trading.

If anything, just be mindful of Fed chair Powell’s speech later but we already got the gist of what he has to say later today here.
In the currencies space though, the dollar is keeping a little firmer but gains have been trimmed in the past hour or so. EUR/USD is still lower at 1.1740 but off earlier lows of 1.1720. Meanwhile, AUD/USD is slightly lower at 0.7213 but off earlier lows of 0.7178.

Global Times editor: China will not accept US demands with regards to TikTok

  
  Uncategorized

A tweet by Global Times editor, Hu Xijin

“Stop extorting. You think TikTok is a company from a small country? There’s no way the Chinese government will accept your demand. You can ruin TikTok’s US business, if US users do not object, but you can’t rob it and turn it into a US baby.”

The tweet is directed to US president Trump, after he made remarks that TikTok will be totally controlled by Oracle should the deal happen. This rings more of the same tune from last week, that China won’t be approving any sale based on the current understanding.

 

And so the battle continues to rage on.. November can’t come soon enough.

EUR/USD slumps to near six-week low as dollar firms further on the session

  
  Analysis

The dollar continues to gain further on the week

EUR/USD D1 22-09

EUR/USD is now pushed down to its lowest level since 12 August, falling to a session low of 1.1720 and closing in on the 12 August low @ 1.1711. The 1.1700 handle is now the key level to watch out for on the daily chart.
If that and the 3 August low @ 1.1696 gives way, things could turn rather ugly for the euro over the next few sessions.
The softer risk mood seen in US futures are still part of the reason fueling bids in the dollar and yen today, but ultimately the stretched positioning over the past two months or so is another important factor to consider for EUR/USD.
The slight squeeze here may still end up being bought by buyers but for a better sense of that, the technical levels pointed out above will help us determine things.
If the 1.1700 handle is firmly broken, the dollar rally looks set to extend further and an extended squeeze is very much on towards 1.1500 potentially.

The NASDAQ index nearly erases all their losses. Dow the worst performer.

  
Analysis, US Market
The major indices all closed lower but well off the highs.
  • S&P and NASDAQ are still lower for the 4th consecutive day
  • Dow down for the 3rd day in a row
  • NASDAQ closes 11% below its all-time high but nearly erased a -273 point decline (closed down -14.48 points)
  • Dow industrial average was down -942 points. Closes down -509 points. Index closed at its lowest level since August 4
  • Apple which traded as low as $103.10, rebounded and closed up on the day by 3% at $110.08

The final numbers are showing:

  • the S&P index closed down -38.41 points or -1.16% at 3281.06.
  • The NASDAQ index closed down -14.485 points or -0.13% at 10778.79
  • Dow industrial average closed down -509.72 points or -1.84% at 27147.70
Some winners today included:
  • Zoom, +6.76%
  • Crowdstrike, +5.22%
  • Slack, +4.51%
  • Square +4.15%
  • PayPal, +4.05%
  • AMD, +4%
  • Netflix, +3.74%
  • Apple, +3.08%
  • Nvidia, +2.71%
  • Intuit, +2.63%
Some oversized losers included:
  • Delta Air Lines, -9.2%
  • United Airlines, -8.6%
  • Deutsche Bank, -8.14%
  • American Airlines, -7.35%
  • Southwest Airlines -5.82%
  • American Express, -5.15%
  • Caterpillar, -4.63%
  • Northrop Grumman, -4.57%
  • Wells Fargo, -4.34%
  • Emerson, -4.24%
  • Lockheed Martin, -3.93%
  • Raytheon, -3.74%
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