Optimism Flowing Once Again
That good feeling is back in the markets after we saw some end of month profit-taking on Monday, with Europe seeing gains of more than 1% and Wall Street eyeing a similar open.
The last month was massive for the markets. One major risk event removed and three vaccines that...
Sunset Market Commentary
Markets
After finishing the astonishing November rally with a dissonant yesterday, investors see the glass again half full rather than half empty. Yesterday’s setback probably was mainly an end-of month, technically inspired repositioning. Even so, today’s news headlines and data were also mostly market-friendly. The risk revival started in Asia...
U.S Futures Rising – Watch TSLA, PFE, BNTX, XOM
The S&P 500 Futures are on the upside after they closed mixed on Monday.
Later today, the U.S. Commerce Department will release October construction spending (+0.8% on month expected). The Institute for Supply Management will report its Manufacturing Index for November (58.0 expected). Research firm Markit will publish final readings...
OECD forecast global growth at 4.2% in 2021, 3.7% in 2022
The OECD said in its latest Economic Outlook report that the global economy will grow 4.2% in 2021, after contracting -4.2% this year. Growth is then expected to slow to 3.7% in 2022.
US GDP is expected to contract -11.2% in 2020, rise 4.2% in 2021, then 4.1% in...
Stocks Start the Month Strong, But No Downside Breakout in Dollar Yet
Yen and Dollar are generally softer today as markets open December on firm footing. Australia Dollar is following as third weakest as diplomatic tension with China worsens. On the other hand, Euro is leading Swiss Franc higher. Manufacturing data from China and UK indicate sustainable recovery for now, while...
ECB Schnabel: It’s appropriate to preserve financing conditions rather than ease much further
Regarding the upcoming policy recalibration, ECB Executive Board member Isabel Schnabel said it's "appropriate to focus on preserving" the financing conditions, "rather than easing much further". She emphasized, "if it's necessary to do something that doesn't meet market expectations, we have to do that nevertheless."
"I indeed hope this will be the last...
EU Indices Try To Rebound | TA Focus On Enel
INDICES
Yesterday, European stocks were broadly under pressure. The Stoxx Europe 600 declined 1.0%, Germany's DAX fell 0.3%, France's CAC 40 slid 1.4%, and the U.K.'s FTSE 100 sank 1.6%.
EUROPE ADVANCE/DECLINE
67% of STOXX 600 constituents traded lower or unchanged yesterday.
70% of the shares trade above their 20D MA vs 75%...
Eurozone CPI unchanged at -0.3% yoy, core CPI at 0.2% yoy
Eurozone CPI was unchanged at -0.3% yoy in November, versus expectation of 0.2% yoy. Core CPI was unchanged at 0.2% yoy. Looking at the main components, food, alcohol & tobacco is expected to have the highest annual rate in November (1.9%, compared with 2.0% in October), followed by services...
Eurozone PMI manufacturing finalized at 54.8, a brighter outlook indicated by upturn in optimism for year ahead
Eurozone PMI Manufacturing was finalized at 53.8 in November, down from October's 54.8. Markit said there were slower, but still marked gains in output and new orders. Job losses continued but confidence improved further. Looking at some member states, Germany PMI Manufacturing stood high at 57.8. The Netherlands hit...
IMF: Further support likely need from ECB
IMF warned that the second wave of coronavirus "poses a considerable risk to the recovery" of EU's economy, "through early 2021". But, " the recent promising news on vaccine development provide significant upside risk further out , as rapid and widespread delivery of safe and effective vaccines would likely spur...
Sunset Market Commentary
Markets
At the start of the new week, global trading showed no clear, unequivocal trend across markets. Asian equities finished the month with modest losses despite the a solid China PMI confidence, both for the manufacturing and the services sector. This investor caution also spilled over into European trading. At...
U.S Futures Consolidating – Watch SPGI, INFO, MRNA, GS
The S&P 500 Futures are mixed after they closed higher on Friday.
Later today, the Market News International will release Chicago PMI for November (59.2 expected). The National Association of Realtors will post October pending home sales (+1.0% on month expected). The Dallas Federal Reserve will post its Manufacturing Outlook...
ECB President Lagarde speaks at EPC Thought Leadership Forum
https://www.youtube.com/watch?v=8Xn_uuXTaZ0
EU Indices Consolidate | TA Focus On Sanofi
INDICES
Friday, European stocks were broadly higher. The Stoxx Europe 600 climbed 0.5%, Germany's DAX advanced 0.4%, France's CAC 40 rose 0.6%, and the U.K.'s FTSE 100 gained 0.1%.
EUROPE ADVANCE/DECLINE
65% of STOXX 600 constituents traded higher Friday.
75% of the shares trade above their 20D MA vs 75% Thursday (above the...
Week Ahead – We Go Again
A busy end to a chaotic year
December may normally be associated with everything slowing down as we ease our way into the festive period but as with everything else in 2020, this is no normal December. Donald Trump is continuing to fight the election result and is going out...
Week Ahead – Data Overload May Spoil Vaccine Euphoria; NFP to Lead the Pack
It’s NFP week and as investors battle the vaccine optimism against the short-term gloom, the latest jobs report from the United States may determine which way sentiment sways next. Canada will also publish jobs numbers along with its Q3 GDP print. The Reserve Bank of Australia, meanwhile, will kick...
Weekly Focus – Rays of Light in Europe
While Europe is seeing rays of light in getting the second COVID-19 wave under control, the situation in US is worsening fast. Many European countries now see a turnaround in new infections and this week France joined the club with a big decline in new cases. Italy is finally...
Sunset Market Commentary
Markets
Today’s only market-moving remark came after an EU diplomat quoted by Reuters. It sent sterling lower with EUR/GBP heading towards 0.8950. The EU diplomat stated the obvious though by pointing out that only a few days are left for EU talks. “Without London taking the necessary decisions quickly, reaching...
U.S Futures Slightly Up- Watch TSLA, DIS, CSCO
The S&P 500 Futures are slightly on the upside after U.S. financial markets were closed for the Thanksgiving holiday yesterday.
European indices opened on the upside before facing a consolidation as EU Ambassadors agreed to prepare diligently for all possible Brexit outcomes and called on EU Commission to present contingency...
Sterling Weighed Down by Same Old Brexit Concerns, as UK-EU Divergences Remain
Sterling turns generally lower in quiet holiday-mood trading today. Sellers are back in control as there appears to be no path out of the Brexit trade talk deadlocks yet. And, time is running out clearly. Overall, Yen and Dollar remain the worst performing ones of the week, on general...
EUR/USD Steady as French Data Beats Forecasts
EUR/USD is up slightly on Friday. Currently, the pair is trading at 1.1926, up 0.11% on the day. With the US on an unofficial holiday after Thanksgiving, Friday will likely be a muted session.
France GDP bounces back
As the United Kingdom finally bids adieu to the European Union at the...
ECB Villeroy: Recalibration must focus on quality of monetary policy transmission
ECB Governing Council member Francois Villeroy de Galhau said, in face of "prolonged uncertainty" due to resurgence in coronavirus infections, "our first objective must be keeping very favorable financing conditions as long as necessary".
But he also added, "recalibration of instruments must focus in particular not only on the level...
Eurozone economic sentiment dropped to 87.6
Eurozone Economic Sentiment Indicate dropped markedly to 87.6 in November, down from 91.1, but beat expectation of 86.5. Employment Expectations Indicator posted the second fall in a row, down -3.3 pts to 86.6. Amongst the largest euro-area economies, the ESI plunged in Italy (-8.7) and France (-4.8), while its...
EU Indices Still Mixed | TA Focus On Swiss Life
INDICES
Yesterday, European stocks still lacked momentum. The Stoxx Europe 600 declined 0.12%, Germany's DAX was little changed, France's CAC 40 dipped 0.08% and the U.K.'s FTSE 100 dropped 0.44%.
EUROPE ADVANCE/DECLINE
55% of STOXX 600 constituents traded lower or unchanged yesterday.
75% of the shares trade above their 20D MA vs 75%...
EU Budget And Brexit Headache
Market movers today
The main market driver continues to be vaccine news and COVID-19 developments in the US and Europe.
Norway and Sweden release retail sales for October today. The numbers are set to be a bit outdated, though, as any impact of COVID-19 is unlikely to show up...
Euro Wavers As ECB Consider More Stimulus
The euro was little changed in overnight trading after the ECB published the minutes of its previous meeting. The minutes showed that the bank was considering more stimulus to support the economy. The potential stimulus would include allocating more funds to the quantitative easing program. However, some members of...
Yen Recovers in Subdued Trading, Gold Consolidates Losses in Tight Range
Trading continues to be subdued in Asia as markets are in holiday mood. Yen is trading mildly higher overall, but remains the worst performing one for the week. Dollar's selloff slowed somewhat, but remains the second worst for the week. Commodity currencies are set to close the week as...
Asia Morning: Gold Halts Sliding On Thanksgiving Holiday
On Thursday, U.S. financial markets were closed for the Thanksgiving holiday.
European stocks still lacked momentum. The Stoxx Europe 600 declined 0.12%, Germany's DAX was little changed, France's CAC 40 dipped 0.08% and the U.K.'s FTSE 100 dropped 0.44%.
Spot gold rebounded $8 (+0.46%) to $1,815 an ounce.
U.S. WTI crude futures...
Cliff Notes: A Holiday Season Unlike Any Other
Key insights from the week that was.
This week saw the release of Australian partial data related to next week’s Q3 GDP report. Meanwhile, in the US and Europe, the focus remained on COVID-19’s spread and how it can be suppressed.
The construction work done survey was the first of two...
ECB Panetta open to case-by-case resumption of bank dividend payouts
Executive Board member Fabio Panetta told Portuguese newspaper Expresso that he's open to allowing some banks to resume paying dividends. Nevertheless, "if they don't distribute dividends this year, they can distribute more next year and in the meantime they will be in a better position to face a situation of...