Archives of “December 10, 2020” day

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European shares closed mixed. German DAX down, UK’s FTSE 100 up

  
Analysis, Global Indices

Mixed results in Europe

The European indices are closing the session with mixed results. Provisional closes are showing:
  • German DAX, -0.27%
  • France’s CAC, +0.1%
  • UK’s FTSE 100, +0.7%
  • Spain’s Ibex, -0.5%
  • Italy’s FTSE MIB, +0.1%
in the European debt market, the benchmark 10 year yields are also ending mixed with Germany, France, Spain marginally higher, while UK, Italy and Portugal are lower:

AUDUSD extends to highest level since mid June 2018

  
Analysis, Forex

Price today moved above the July high at 0.7483

The AUDUSD is following the USD lower, and has moved above the July 2018 high at 0.7483.  Yesterday, the high price stalled ahead of that level.

 The price is currently trading at 0.75212.  Looking at the daily chart below, that puts the price and then upper range from mid 2018 between 0.74526 and 0.7676.

Price today moved above the July high at 0.7483_
Drilling down to the hourly chart below, the pair yesterday extended above a swing area between 0.7448 and 0.74529, but failed.
However, the move back to the downside stalled against a lower trendline (see red numbered circle 5). The rebound was on.
In the Asian session today, the price move back above the swing area and after a retest of the level (see green numbered circle 8), buyers started to push the price higher and above the high price from yesterday at 0.7485 area.
AUDUSD on the hourly chart is breaking higher
The buyers are making a  breakout play on the daily (above 0.7483) and on the hourly chart as well (above 0.7448-53 and the high from yesterday at 0.7484.  Stay above 0.7483 keeps the buyers in firm control. A move below that level could see more downside probing on the failure. The 0.7448-53 area is a key line in the sand for buyers now.  Move below would not be welcomed.

Heads up: Pfizer vaccine expected to gain FDA emergency use authorisation

  
Analysis, COVID-19

The FDA’s vaccine advisers will be meeting today on the matter

Pfizer
What follows should be a formality once the advice deems the vaccine to be fit and has met all the necessary criterion.
FDA commissioner, Dr. Stephen Hahn, mentioned this week that “our team has done their initial analysis, and we do feel that preliminarily that the success criteria have been met”.

 

After the approval by the UK, it will be extremely controversial – in either a good or bad way – if the VRBPAC rejects the Pfizer vaccine. That would be a major blow to risk sentiment if it were to happen.
In any case, as much as the approval should already be priced in, just be mindful that the headlines could still give the market a mini-jolt and what not later today.
The meeting will take place at 1400 GMT with the committee vote to take place some time in the afternoon. Here is the full agenda.

Nikkei 225 closes lower by 0.23% at 26,756.24

  
Analysis, Global Indices

Asian equities mostly lower on the day

Nikkei 10-12

That said, equities in the region are closing closer to the highs and recovering off earlier lows after following the more sour overnight sentiment from Wall Street.

The Hang Seng is down by 0.5% while the Shanghai Composite is up 0.1% going into the closing stages. S&P 500 futures are keeping more flat but Nasdaq futures are down 0.3% as sentiment in big tech remains weak since trading yesterday.
That is leading to a more tepid mood ahead of European trading, with 10-year Treasury yields also down 1.6 bps to 0.92%.
In the currencies space, the dollar is more mixed as it pares some of its pullback against the euro, aussie and kiwi but is keeping higher against the yen and pound.

Five parabolic chart moves to watch

  
  Analysis

It starts and ends with commodities

Iron ore hit a fresh 7-year high today and has gained almost 50% since the s tart of November.
It starts and ends with commodities
Copper prices are at an 8-year high and have gone straight up since March:
copper chart
Tesla is one of the all-time great parabolic moves and it keeps going higher despite valuations that defy logic. It’s the confluence of the tech and green movements along with the cult of Elon Musk.
Tesla chart
The Spanish IBEX isn’t exactly a classic parabolic market but it was among the world’s best performing markets in November. However, it’s showing signs of stalling out. Are there real worries or is this just a pause before completing the comeback?
Spain IBEX
The Turkish lira is a basket case but the latest move looks like a blow-off. If it can reverse, its’ a good sign for emerging markets everywhere. USDTRY:
USDTRY
What other charts are you watching?

EU warns big tech firms they could face enormous fines

  
  Analysis

Fines could be up to 6% of revenue

Does anyone else think that government coming after Big Tech might be what pops the Nasdaq bubble?
A new report is out saying that next week the EU is publishing draft regulations that tell Facebook and the like that they need to raise their games on policing the internet or they could be facing fines of up to 6% of revenue.
Meanwhile in the US today, the government brought anti-trust measures against Facebook.
These are popular moves and I think it’s only going to get worse for tech in the years ahead.
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