Archives of “December 14, 2020” day

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European shares and mostly higher. UK’s FTSE 100 modestly lower

  
Analysis, Global Indices

German Dax up near 1%

the European shares are ending mostly higher with the UK FTSE modestly lower by -0.1%. The provisional closes are showing:

  • German DAX, +0.90%
  • France’s CAC, +0.53%
  • UK’s FTSE 100, -0.1%
  • Spain’s Ibex, +1.0%
  • Italy’s FTSE MIB, +0.48%
In the European debt market, the benchmark 10 year yields are ending with mixed results:
German Dax up near 1%_
In other markets as London/European traders look to exit:
  • Spot gold is trading down $15.75 -0.86% at $1824.15. The rise in the US dollar in the New York session has helped to weaken the price of spot gold
  • spot silver is trading down $0.09 or -0.36% at $23.86
  • WTI crude oil futures are trading down $0.30 -0.64% at $46.26. That is lower than earlier levels which is all the high price extended up to $47.44, but above the session lows of $45.69
  • Bitcoin on Coinbase is trading down $47 at $19,134 (vs. Sunday’s close). The high price reached $19,338.45. The low price extended to $18,967.68. The all-time high price from earlier this month came in at $19,915

BlackRock upgrades asset class outlook on equities to overweight

  
  Analysis

6 to 12 month asset view upgraded at BlackRock

BlackRock has upgraded their 6 to 12 month asset class outlook on equities to overweight on expectations that the coronavirus restart would accelerate, and rates would stay a low.

Today US stocks are higher across the board with the NASDAQ index leading the way with a gain of over 1% currently (but off high levels).
A current snapshot of the market shows:
  • S&P index up 15.7 points or 0.43% at 3679.28
  • NASDAQ index up 123.6 points or 1.0% at 12501.50
  • Dow industrial average up 109 points or 0.32% at 30145.50
The Dow industrial average moved to an all-time intraday high earlier today at 30325.79, but has come back down.  . The old high was at 30319.70 reached on last Wednesday.

OPEC cuts Q1 oil demand forecast by 1 mbpd

  
Analysis, Crude

The latest from the OPEC monthly report

  • Sees demand in 2020 down 9.77 mbpd vs 9.75 mbpd in prior monthly forecast
  • Sees 2021 demand up 5.9 mbpd vs 6.25 mbpd prior
  • Lower 2021 demand due to uncertainty around covid-19, especially in H1. Also reflects mild weather
  • Recent vaccine news is upside risk
Oil has given back much of its gains in the past hour and is now trading higher by just 18-cents to $46.76.
The latest from the OPEC monthly report

Weekend news – Peru suspends Sinopharm COVID-19 vaccine trial after ‘adverse event’

  
Analysis, COVID-19

This is from the weekend, posting as an ICYMI on China vaccine developer Sinopharm Group.

  • is conducting trials in Peru
  • with around 12,000 volunteers
But trials have been suspended due to a “serious adverse event” that occurred with one of the volunteers. The event is “under investigation to determine if it is related to the vaccine or if there is another explanation”.

Weekend news on oil – Iran pipeline fire, Saudi port explosion

  
Analysis, Crude

There was a spillage and fire after a pipeline carrying crude oil to Iran’s second-largest refinery ruptured on Sunday.

A landslide was blamed (info via Reuters).
Also, via AP
  • A ship explosion off Saudi Arabia’s port city of Jiddah on the Red Sea (a crucial port and distribution centre for its oil trade).
  • Saudi Arabia’s state-run media did not acknowledge the explosion.

Wall Street Journal with more on the foreign government breach of US Treasury

  
  Analysis

WSJ with more on this from earlier: The US Treasury breach is said to be by state-backed hackers

Citing an unnamed person familiar the Journal says suspicion is centring on Russia
  • multiple federal government agencies, including the U.S. Treasury and Commerce departments, have had some of their computer systems breached a
  • Russia’s foreign intelligence service is suspected of being behind the hacks
  • Commerce Department confirmed that one of its bureaus had been breached

UK car factories could be shut down early next year, Brexit trade deal or no deal

  
  Analysis

Sky carries an alarming heads up from a UK union official:

  • “Within days [of 1 January] we may potentially see an issue where production is shut and ceases because there’s a backup at Dover.”

The posturing and preening coming out of the talking head politicians suggests to me that the welfare of UK industry and workers is waaaaay down the list of concern. Which is a shame but there you go.

Sky piece is here for more.

Sky carries an alarming heads up from a UK union official:
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