Archives of “January 22, 2021” day

rss

European equity close: Soft finish leads to negative week

  
Analysis, Global Indices

Closing changes in the main European bourses:

  • UK FTSE 100 -0.4%
  • French CAC -0.7%
  • German DAX -0.2%
  • Italy MIB -1.6%
  • Spain IBEX -1.2%
Talk of a fresh election is weighing on Italian stocks
On the week:
  • UK FTSE 100 -0.7%
  • French CAC -1.0%
  • German DAX +0.6%
  • Italy MIB -1.4%
  • Spain IBEX -2.5%
Just when it looked like Italian stocks might get some upward momentum, they get cut right back down and are now lower on the year.

Closing changes in the main European bourses:

Astrazeneca informs EU of vaccine delivery issues

  
  Analysis

Discontent in the EU is growing

Astrazeneca now sees fewer vaccine deliveries post-approval.
It’s not going to be a good look for the EU when the US, UK and a few other countries reach heard immunity well before them. It’s not like the EU has a lot of positive political capital to start with.
The difference is going to look good for the UK.
In the bigger picture, the growth outlook in the EU is dismal and that’s the longer-term risk.

US weekly oil inventories 4352K vs +2425K expected

  
Analysis, Crude

Weekly US oil inventories

  • Prior was -3248K
  • Gasoline -259K vs +2425K
  • Distllates +457K vs +1800K exp
API data from Wednesday:
  • Oil +2500K
  • gasoline +1100K
  • Distillates +800K
  • Cushing -4300K
That was a larger build in oil and prices have ticked lower but the product data is bullish. WTI last prices down 76-cents to $52.29.
Earlier today it looked like crude might be falling below its recent range but it perked back up after the Markit PMI.
oil chart

Markets de-risking into the weekend?

  
  Analysis

Pause for thought

This week’s equity markets saw a classic ‘turnaround Tuesday’ as the sell the fact response from Biden’s stimulus package was erased. Today we are seeing some de-risking, possibly into the weekend after some strong gains in the US led by tech earnings.
Still a buy on any dips
 
Central banks have been slowly turning less dovish – The BoC, the ECB, the RBNZ, RBA and some Fed speakers have all been more on the ‘worst behind us’ footing over the last couple of weeks. This coupled with strong fiscal stimulus means that dip buying is still favoured.
Go to top