Archives of “December 7, 2020” day

rss

McConnell to unveil $900 billion GOP stimulus around 3 PM

  
  Analysis

According to Fox’s Gasparino

According to Fox’s Charlie Gasparino, Sen. Mitch McConnell is to unveil a $900 billion GOP stimulus around 3 PM.
Gasparino adds:
  • Evaluating liability protections
The Dems are likely looking for more, but the proposed bipartisan $900 billion package (don’t know if this is the same), at least stirred the embers a bit from both sides of the aisle.
The US employment statistics on Friday were weaker than expected and the trends into the new year are not great with the surge in Covid cases and the potential for more lockdowns.  The airline/travel, restaurant, entertainment industries remain depressed.
UPDATE: There is a separate report that this is false.
  • S&P index is trading down -3.81 points.
  • The NASDAQ index is up 47 points the
  • Dow industrial average is down 111 points

European major indices end the day mostly lower. UK FTSE 100 as a small gain

  
Analysis, Global Indices

German DAX -0.22%

The European major indices are ending the day mostly lower. The UK FTSE 100 is the outliner with a small gain.

The provisional closes are showing
  • German DAX, -0.22%
  • France’s CAC, -0.7%
  • UK’s FTSE 100, +0.1%
  • Spain’s Ibex, -0.6%
  • Italy’s FTSE MIB, -0.35%
In other markets as London/European traders look to exit:
  • Spot gold is trading sharply higher by around $26 or 1.41% to $1864.67. The I price reached $1868.60.
  • Spot silver is trading up $0.45 or 1.87% at $24.63
  • WTI crude oil futures are trading down $0.30 -0.65% of $45.96
  • Bitcoin on Coinbase is trading down $33 and $19,214.50.  The G7 financial ministers met on a conference call today and cited strong support on need to regulate digital currency’s
The US stocks are trading mixed, with the Dow down while the NASDAQ index is higher. The S&P index is trading marginally lower.  The NASDAQ is traded to an all-time new high price today at 12436.22
  • NASDAQ index up 56 points or 0.45% at 12519.73
  • S&P index down 3.52 points or -0.10% at 3695.62
  • Dow industrial average -118.07 points or -0.4% at 30098

Mnuchin hosts G7 call with finance ministers and central bank governors

  
  Analysis

US Treasury Secretary Mnuchin hosts call with G7 members during video conference.

  • Cited strong support on need to regulate digital currency’s
  • Discussed responses to Covid 19 pandemic
  • Continue to coordinate on timely responses to Covid 19 pandemic
  • Domestic and international economic response is underway and discussed strategies to achieve a robust global recovery
This week, the Bank of Canada will meet on Wednesday along with the ECB on Thursday.
Next week the US FOMC will announce their rate decision on December 16. The Swiss National Bank and Bank of England will meet on Thursday

BOJ takes over as the largest ‘whale’ in Japan

  
  Analysis

BOJ usurps GPIF as the biggest owner of domestic stocks

The massive ETF purchases by the BOJ has seen them take over the title as the largest ‘whale’ in Japan, with its equity portfolio rising to ¥45.1 trillion in November. That surpasses the ¥44.8 trillion holding by the GPIF, who is the world’s largest pension fund.
BOJBOJ equity holdings
And the gap between the two is likely to widen further in the BOJ’s favour.
Nomura says that this should continue as “the BOJ has never taken profits on its holdings and only continues to build holdings in ETFs”. Meanwhile, the GPIF “has to sell equities when prices are high to adjust the weigh of stock holdings within its portfolio”.

China November trade data shows strong exports but soft imports

  
  Analysis

China reports larger trade surplus

China imports
  • Exports (USD) +21.1% y/y vs +12.0% exp
  • Imports (USD) +4.5% y/y vs +7.0% exp
  • Trade balance +$75.4B vs +$53.7B
This isn’t a great sign. Strong exports are good on the face of it but that says more about the economy right now than in the future. The soft imports number though suggests that China sees slower demand going forward.
At the same time, I hate to draw any conclusions because of all the skews from the pandemic. A 4.5% y/y increase in imports in a global economy that has shrunk and is at peak pandemic isn’t exactly a red flag.

US prepares sanctions on more than a dozen Chinese officials – report

  
  Analysis

Reuters report

The US is planning more individual sanctions as a result of China’s role in taking away autonomy from Hong Kong, according to three sources cited by Reuters.
The move could come on Monday and may include up to 14 people.
This report isn’t going to matter for markets. Individual sanctions are a soft way to basically voice displeasure. National sanctions are the tool that would have an effect.
Go to top