Thought For A Day
Archives of “October 2020” month
rssMaj. European indices in the session mixed to start the week
UK and Spanish indices close lower
The major European indices are ending the session with mixed results. UK and Spain are ending modestly lower. Germany and France are up about 0.6% each.
The provisional closes are showing:
- German DAX, +0.65%
- France’s CAC, +0.8%
- UK’s FTSE 100, -0.2%
- Spain’s Ibex, -0.1%
- Italy’s FTSE MIB, +0.6%
Money for nothing: #Italy’s 30y yields drop to record low 1.54% as markets bet on a further #ECB boost.
Get ready for negative rates
Bank of England asks banks about readiness for negative rates reut.rs/3nJjeKf
Boris Johnson’s spokesman: UK is at critical point to confront second wave
Comments from James Slack:
- Will work as hard as we can this week to see if we can get an agreement on Brexit
- PM has been clear with European leaders that time is running out
Later today, Johnson will reveal a three-tiered system of openings and closings due to the virus.
Brexit talks aren’t going to reach a conclusion on Oct 15 but will almost certainly be extended.
Japan Core Machinery Orders for August +0.2% m/m (expected -1.0%)
The data point is used as a capex indicator for Japan in the months ahead
Core Machinery Orders for August +0.2% m/m
- expected -1.0%, prior 6.3% m/m
-15.2% y/y
- expected -15.6%, prior -16.2% y/y
Bank lending for September out at the same time.
- +6.4% y/y inclusive of trusts lending (vs. +6.7% prior)
- +6.2% y/y exclusive of trusts lending (vs. +6.6% prior)
Offshore yuan (CNH) is trading lower after the PBOC weekend rate move
In that post you’ll see commentary that the move will impact, at the margin, to weigh on the yuan. In response, offshore yuan has indeed seen the currency weaken (i.e USD/CNH higher). Early trade:
Its worthwhile checking out a longer time frame chart for the bigger picture context – the move weaker for CNH is small in larger timeframes.
The EU is targeting big tech companies with new rules to address market power
The Financial Times reports on a European ‘hit list’ of up to 20 large tech fimrs.
Including the usual suspects 9Facebook etc).
Targeting the firms with stricter rules to address their market dominance and hence market power.
Financial Times link is here (may be gated)
Watch out for this to act as a negative once equity trade (futures) reopen for the week soon.
Puzzle Time
Thought For A Day
