New dollar highs vs the GBP, CHF, and NZD

Dollar edges higher

As the London 4 PM fixing approaches (11 AM ET), the USD is making new highs verse the GBP, CHF and NZD in the last few minutes.
The dollar the strongest of the major currencies today.
The USDCHF traded up to a high price of 0.9236 and moves closer to the high price from yesterday (and highest level since July 8) at 0.92416.
The GBPUSD moved briefly below its 38.2% retracement of the move up from the July 20 at 1.38255. The low price reached 1.38218, but has bounced back to 1.3827 currently. Earlier, the price fell below its 100 hour moving average at 1.38552 and stay below that level over the last 4/5 hours of trading.

Another case adding to global supply chain disruptions

China partly shuts down the world’s third-busiest container port after a worker was infected by COVID-19

All inbound and outbound container services at the Meishan terminal in the Ningbo-Zhousan port, third busiest in the world, were halted yesterday until further notice after a worker tested positive for COVID-19. The infection case details can be found here.
As long as the delta variant continues to pose a heightened threat to major economies, incidences such as the above are going to be more commonplace so just be wary of the risks that loom over the market despite the more optimistic summer.

BlackRock on US equities – turn neutral (& upgrade European equities to overweight)

ArticleBody BlackRock is the world’s largest asset manager, circa $9 trillion in assets under management (as of June 2021).

Some snippets from their latest on US and Euro equities.
  • We turn neutral U.S. equities. We see U.S. growth momentum peaking and expect other regions to be attractive ways to play the next leg of the restart as it broadens to other regions, notably Europe and Japan.
  • We upgrade European equities to overweight on the back of the broadening restart. We see a sizeable pickup in activity helped by accelerating vaccinations. Valuations remain attractive relative to history and investor inflows into the region are only just starting to pick up.
ArticleBody BlackRock is the world's largest asset manager, circa $9 trillion in assets under management (as of June 2021).

US FDA set to approve a third vaccine shot for people with compromised immune systems

This news was out earlier, just doing a bit of a round-up now.


  • United States Food and Drug Administration is on the verge of amending the Emergency Use Authorization (EUA) for the Pfizer and the Moderna Covid-19 vaccines.
  • Will allow people with compromised immune systems to get a third dose


Approval likely on Thursday, cited are two unnamed sources “familiar with the plan”

US Treasury Secretary Yellen to visit China (maybe)

US Treas Sec Yellen  is considering making a trip to China sometime in the months ahead

That’s the scuttlebutt says Bloomberg, citing unnamed sources.
  • No decision has been made yet
  • Delta-related travel risks are part of the considerations
Bloomberg add that Treasury spokeswoman Lily Adams says  “There are no plans for Sec Yellen to travel to China in the fall”.
If this comes off it would be indicative of at least some sort of thaw in current chilly relations between the US and China.
US Treasury Secretary Yellen

China is to strengthen its anti-monopoly laws (antitrust and unfair competition)

Overnight reports in Chinese media (state tabloid Global Times) in a five-year plan.

Main points:
  • enhanced protection of property rights and self-operating rights of enterprises of different ownership types
  • avoiding the abuse of administrative power to exclude and limit competitive behavior.
  • will also improve the management system of “pre-establishment national treatment” with a negative list for foreign investment, and push for institutional opening in laws, rules, management and standards
  • to ramp up legislation in national security, scientific and technological innovation, culture and education, and anti-monopoly efforts, among other fields
Chinese authorities have been very active in recent weeks cracking down on various sectors, notable education and tech. This has led to sell-offs in equities.

Overnight reports in Chinese media (state tabloid Global Times) in a five-year plan.

S&P and Dow close (again) at new highs. Nasdaq recovers but still lower on the day

Nasdaq lower for the 2nd consecutive day

The Dow and S&P closed at record levels for the second consecutive day. The NASDAQ closed lower for its second day of declines.
  • The Dow closed at a record for the 32 time this year
  • The S&P closed at a record level for the 46th time this year
  • The Dow closed near its highs for the day
The final numbers are showing:
  • Dow rose 220.23 points or 0.62% at 35484.90. That was just off the high of 35501.16.
  • S&P rose 11.02 points or 0.25% at 4447.77. The high for the day reached 4437.10
  • Nasdaq felt -22.95 points or -0.16% at 14765.13. The low percentage decline reached -0.65%.
  • Russell 2000 rose 10.98 points or 0.49% at 2250.34
Looking at the sectors:

  • Materials, rose 1.42%
  • Industrials, rose 1.3%
  • Financials, rose 1.17%
  • Utilities, rose 0.93%
The laggards today were:
  • Healthcare, -0.97%
  • Technology, +0.02%
  • Communication services, +0.03%
  • Discretionary, +0.13%
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