Archives of “October 28, 2020” day

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PBOC hinting the 6% drop in USD/CNY since the end of May is enough, for now

  
Analysis, Forex

Posting this on the People’s Bank of China as an ICYMI, if you are trading yuan please check it out.

Justin broke the news yesterday of the PBOC asking banks to suspend the use of the counter-cyclical factor in its daily yuan midpoint fixing.
Check out the chart below for the extent of yuan gains since May, if these keep on China’s export performance will suffer. I think its well worth paying attention to this story and we are about to see greater two-way movement of the yuan ahead. Recall also the PBOC moved in early October to make selling yuan forward cheaper. This new development builds on that. (PBOC has lowered the reserve requirements on some forward yuan FX trading.)
Posting this on the People's Bank of China as an ICYMI, if you are trading yuan please check it out.

Germany is discussing a two-week coronavirus shut down

  
Analysis, COVID-19

The German government pondering a 2 week lockdown, closing all but essential retail/services, kindergartens, schools

Earlier news France is considering similar:

  • French President Macron will address the nation on Wednesday evening
  • France said to be considering a month-long coronavirus national lockdown

Neither the French nor German shut downs as mentioned above are confirmed, these are the various media reports doing the rounds.

NASDAQ close higher, but S&P and Dow close near session lows and negative on the day.

  
Analysis, US Market

Dow closes lower for the 3rd straight day

The major indices are closing mixed with the Dow taking the brunt of the selling. The Nasdaq index closed higher ahead of Microsoft’s earnings.

Highlights:
  • Dow and S&P closed near session lows
  • Dow post 3 day losing streak
  • NASDAQ close higher for the 3rd time in 4 days
  • Dow close that the lowest level since September 29 and 7% off all time highs
  • S&P and NASDAQ close 5% off the all-time highs
The final numbers are showing:
  • S&P index fell -10.28 points or -0.30% at 3390.69
  • NASDAQ index rose 72.415 points or 0.64% at 11431.35
  • Dow fell -222.19 points or -0.8% at 27463.19
Microsoft earnings are out and they beat on the top and bottom lines;
  • Earnings-per-share came in at $1.82 vs. $1.54 estimate
  • revenues came in at $37.15 billion vs. an estimate $35.75 billion
  • intelligent cloud came in at $12.99 billion vs. 12.72 billion estimate
  • productivity and business processes came in at $12.32 billion vs. expected $11.79 billion
  • more personal computing came in at $11.85 billion vs. expected $11.17 billion
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