‘The Battle For Stock Market Profits’ – Loeb 1971
Archives of “December 2020” month
rssEuropean shares and mostly higher. UK’s FTSE 100 modestly lower
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:
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
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
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.
Restrictions still in place
The vaccine is here, but the virus is still out there. This is just a reminder that lockdowns are still going to dog economies for at least Q1 2021.
Looking at markets as Europe gets underway
Positive risk bias
Dollar is lower at the open, equity futures higher, Pacific-Asia indices broadly higher aside from the Hang Seng. US yields a touch higher, but only muted moves in the bond markets. The markets have a positive bias to risk on with the USD weaker against all the major currencies.
Weekend news – Peru suspends Sinopharm COVID-19 vaccine trial after ‘adverse event’
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
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
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
Link to the Journal for more (may be gated)
UK car factories could be shut down early next year, Brexit trade deal or no deal
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.
