Archives of “December 2, 2020” day

rss

European major indices close the day with mixed results. UK FTSE 100 rises

  
Analysis, Global Indices

Spain’s Ibex also higher on the day

The major European indices are closing the day with mixed results. The gains were led by the FTSE 100. The Spanish Ibex also moved higher. The German DAX lagged.

The provisional closes are showing:
  • German DAX, -0.55%
  • France’s CAC, unchanged
  • UK’s FTSE 100, +1.2%
  • Spain’s Ibex, +1.0%
  • Italy’s FTSE MIB, -0.5%
In other markets as London/European traders look to exit:
  • spot gold is trading up $13.78 or 0.76% at $1829.02.
  • Spot silver is trading down $0.01 or -0.05% at $23.99
  • WTI crude oil futures are up $0.94 or 2.11% at $45.48. That is just off the high price of $45.69. The low price extended to $43.92.  Talks between Opec Plus continued today and vibe appears to be a lot more diplomatic and delegates say that they are positive consensus will be reached tomorrow.
  • Bitcoin on Coinbase is trading down $140 and $18,919
In the US stock market, the major indices are going back earlier declines:
  • S&P index is now up 2.14 points or 0.05% at 3664.47. The low price reached 3644.84
  • NASDAQ index is still down 17.3 points or -0.14% 12337.50. The low price reached 12217.34
  • Dow industrial average is down 8 points or -0.03% at 29815. The low price reached 29599.29

Powell: Middle of next year may be light at the end of the tunnel

  
  Analysis

Comments from the Fed Chair in Day 2 of testimony

  • Economy could be healthy in H2 2021
  • Near term looks challenging through the winter
  • Clearly in much better place for liquidity
All this begs the question: What about that pledge to keep rates zeroed until 2024? The economy has far outperformed Fed forecasts (to be fair they’re not alone) and what happens if it continues to outperform. How big is Powell willing to inflate the bubble to maintain his word?

Pfizer says US FDA and EU EMA decisions on authorisation expected this month as well

  
Analysis, COVID-19

Pfizer briefs after the UK MHRA authorises emergency-use supply for its coronavirus vaccine

Just one to take note in case we hear more from Pfizer during the next few weeks.

The pharmaceutical firm also confirms that companies are ready to deliver the first doses to the UK immediately. UK health secretary, Matt Hancock, is also out now saying that 50 hospitals are set up and waiting to accept this vaccine.
Adding that there will be big centers for vaccination that are also being set up now.
This is a positive development in the UK but the procedures in implementing all of this are going to be tedious. The vaccine rollout may begin next week but it will take time for the effect to be felt among the general public, especially if the distribution is in stages.

Nikkei 225 closes higher by 0.05% at 26,800.98

  
Analysis, Global Indices

A mixed session for Asian equities

Nikkei 02-12
The Nikkei closes near flat levels, with Asian stocks failing to really take heart from the overnight gains in Wall Street. S&P 500 futures are down 0.3% in a bit of a breather after the record close seen in the cash market yesterday.
The Hang Seng is down 0.4% while the Shanghai Composite is down 0.3% currently.
10-year Treasury yields are also slightly lower by 1.1 bps to 0.915% but that also reflects a minor pullback following yesterday’s moves.
In the major currencies space, there is little change overall as we look towards European trading. The dollar remains in a vulnerable spot with EUR/USD seeking to extend the breakout momentum above the 1.2000 level.

Germany reports 17,270 new coronavirus cases alongside deadliest day of the pandemic

  
Analysis, COVID-19

There were 487 coronavirus deaths in the latest update today

Germany
That makes it the deadliest day of the pandemic, with the total deaths from the last three days totaling to 1,000 persons.
Meanwhile, the 17,270 new cases still sees active cases across the country linger just below 300,000 as it reaffirms that the situation has sort of reached a plateau but it isn’t really showing much signs of abating over the past few weeks.
The rise in the death statistic is a bit of a concern though. At the end of October, the total coronavirus deaths in Germany were 10,452 persons. For the month of November alone, there were 5,796 coronavirus deaths reported across the country.
And that trend appears to be persisting going into December.
As for healthcare capacity, there is some good news with the number of coronavirus patients requiring intensive care actually falling as of yesterday. Then again, it could be partly related to the increase in the death count so there’s that to consider.
There were 3,919 (-7) patients requiring intensive care as of yesterday with 5,460 (20%) intensive care beds still available across the country.

Biden reportedly won’t immediately remove China tariffs

  
Analysis, Politics

New York Times reports on the matter

Citing remarks by Biden to one of the media outlet’s op-ed columnist in a phone interview, as to saying that Biden will not immediately remove China Phase One tariffs as he wants to conduct a full review of the existing deal with China.

I don’t think this is entirely unexpected. Those hoping that there will be a relaxation of US and China tensions just because Biden is in charge will need to change that misconception, because US-China relations are still going to be on the rocks in the coming decade.
The only difference with Biden and Trump is perhaps that Biden is less “unpredictable” but it doesn’t change the trajectory in which things are headed towards.

Australia GDP for Q3 3.3% q/q (vs. expected +2.5%)

  
Analysis, Economy

GDP (sa) 3.3% q/q  for a BEAT

  • expected +2.5%, prior -7.0%
 and -3.8% y/y
  • expected -4.4%, prior -6.3%
A (relatively) subdued bounce out of lockdown, not as substantial as many countries have seen. Australia has lagged with 20 % (approx) of the economy still locked in a shut down for much of that quarter due to the resurgence of COVID-19 cases in Melbourne and Victoria.
Economic growth data for Australia for the July to September 2020 quarter. 
Go to top