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

  
Analysis, COVID-19

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)

  
  Analysis

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)

  
  Analysis

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

  
Analysis, US Market

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%

Major European indices close higher. German DAX closes at a new record high.

  
Analysis, Global Indices

France’s CAC continues to move toward its all-time high price from 2000

The major European indices are closing higher. The German Dax closed at a new all-time high. The France’s CAC also closed at a 2021 new high and works closer to its 2000 all time high.

The provisional closes are showing:
  • German DAX, +0.3%
  • France’s CAC, +0.5%
  • UK’s FTSE 100, +0.8%
  • Spain’s Ibex, +0.9%
  • Italy’s FTSE MIB, +1.0%
In other markets as European traders look to exit:
  • Spot gold is trading up $20.20 or 1.17% at $1749.29.
  • Spot silver is up $0.16 or 0.69% $23.49
  • WTI crude oil futures are trading down $0.79 or -1.16% at $67.66
  • Bitcoin is trading up $1000 at $46,637
In the US stock market, the Dow and S&P traded to a new all-time highs and remain on track for a record close today. The NASDAQ index continues its slide as investors rotate out of the big cap tech into cyclicals.
  • Dow, up 164 points or 0.47% at 35429
  • S&P up 2.55 points or 0.06% at 4440
  • NASDAQ index down 68 points or -0.46% at 14719
In the forex, the NZD and the AUD are the strongest of the majors, while the USD and CAD are the weakest. The USD has corrected lower today after the recent run to the upside. Although CPI inflation came in more or less as expected, the market is hopeful that the peak is in place (time will tell). The fall in the dollar may also be attributed to a technical correction after some key targets were reached.

Dollar holds slightly firmer in European morning trade

  
  Uncategorized

USD/JPY inches up to five-week highs

The dollar sits in a good spot to start the day as it continues the more solid momentum from last week, with the US jobs report on Friday providing a springboard for the greenback to push higher against the rest of the major currencies bloc.

USD/JPY D1 11-08
In particular, the rise in 10-year Treasury yields above 1.30% (currently near 1.37%) is helping to bolster USD/JPY to fresh highs in five weeks at 110.75. The pair will be looking towards the 111.00 handle next after pushing past the 14 July high @ 110.70.
Elsewhere, EUR/USD continues to linger at the year’s lows, testing support @ 1.1704-11. GBP/USD is also down 0.2% to 1.3815 and heading for a fourth straight down day, while AUD/USD is down 0.3% to 0.7325 near its lowest levels in two weeks.

Chip shortage worsens – more than 20 week wait for deliveries

  
  Uncategorized

The ‘chip lead time’, which is the time from ordering a semiconductor to taking delivery, increased 8 days in July from June.

  • Now more than 20 weeks
The shortages are constraining production of autos, industrial equipment, IT devices, amongst others.
Data comes from Susquehanna Financial Group, reported here (link).
The shortages are not evenly spread across types of chips, some waits are longer than others. More at that link.
The 'chip lead time', which is the time from ordering a semiconductor to taking delivery, increased 8 days in July from June.

Singapore Q2 GDP -1.8% q/q and +14.7% y/y

  
Analysis, Economy

ingapore Q2 GDP +14.7% y/y (Reuters poll +14.2%)

 -1.8% q/q at seasonally adjusted rate

More:

 

  • The Ministry of Trade and Industry upgrades 2021 GDP growth forecast to 6.0% to 7.0% (previous forecast 4.0% to 6.0%)

 

MTI says performance of Singapore economy in H1 2021 was stronger than expected

 

  •  says barring major setback in global economy, Singapore economy expected to continue gradual recovery in H2
  • says easing curbs as vaccination ramps up to support recovery of consumer-facing sectors, alleviate labour shortages

 

2021 NODX forecast now +8% (from +7% previous forecast)

US debt ceiling – 46 Republican senators will not co-operate with Dems

  
  Analysis

DJ / WSJ with the report. Before you read, be aware the debt ceiling will be raised once this dance of farce is complete.

OK, here we go, via the Journal (may be gated) :
  • Most Republican senators have signed on to a pledge to force Democrats to raise the debt ceiling through procedures that don’t rely on GOP votes
  • Sen. Ron Johnson (R., Wis.) said in an interview that some 46 Republicans have signed on to a letter that he circulated during a rapid-fire series of votes on a budget resolution that kicks off Democrats’ efforts to pass a $3.5 trillion cornerstone of President Biden’s agenda.
Bipartisanship has its limits.
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