US equity close: Mixed picture in US equities

Closing changes for the main markets:

Closing changes for the main markets:
  • S&P 500 down 12 points to 3841 (-0.3%)
  • DJIA -0.6%
  • Nasdaq +0.1%
  • Russell 2000 +1.2%
That’s a strange dynamic. It was neither tech nor large caps leading but small caps managed to clock a big gain.
On the week:
  • S&P 500 +1.2%
  • DJIA 0.0%
  • Nasdaq +3.3%
  • Russell 2000 +2.1%

European equity close: Soft finish leads to negative week

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

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

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

Biden issues a series of executive orders

including direction to Treasury Dept

including direction to Treasury Dept
Executive orders to
  • expand pandemic food aid
  • to get stimulus checks to those who haven’t received them yet
  • to restore collective bargaining rights for federal employees

Eurozone Services PMI January 45.0 vs 44.5 expected

Markit 22 Jan

PMI
  • Manufacturing PMI 54.7 vs 54.4 expected
  • Composite PMI 47.5 vs 47.6 expected
Another divergence between manufacturing and services which makes sense as the social (services sector) is more vulnerable to COVID-19 transmission. EURUSD unfazed on this and the coming vaccine will mean all this will be looked through in the big picture.