News / Analysis
Finance Update – A Nail Biter to the EndNovember 4, 2020
Asia – Cautiously optimistic
Asian indices are cautiously optimistic this morning, just into positive territory in China but adding 2% in Japan. Australia closed marginally down at 0.07% and New Zealand up nearly a per cent.
The Yuan continues to vacillate after this morning brought in a 2-point increase in Caixin’s services PMI to 56.8 in October. The marker also improved in Australia, where retail sales improved to a 1.1% contraction.
In New Zealand, unemployment increased in Q3 to 5.3% – a tenth better than expected, with participation improving by a ½ per cent and labour cost increasing QoQ.
Europe – Looking on
With no major data, European equities followed the global trend up across the board yesterday to an average of 2.5% in major markets.
Americas – An open book
Markets closed optimistically ahead of election results – expected to be in much later this week. The DOW was up 2%, but the Russell2000 added an impressive 3.15%.
Yesterday’s Redbook Index doubled YoY in October to 3.2%, and factory orders to 1.1% MoM in September.
Commodities – China shuts down ANT IPO
Oil overnight recovered to 38.57 after the API reported a stunning 8 mB drawdown in crude reserves.
Alibaba shares are down 7% in Hong Kong this morning after the Chinese government put on hold the group’s IPO for its ANT payment processor.
Meanwhile, HSBC’s Bangladesh branch yesterday completed the country’s first cross-border blockchain-based transaction, shortening the processing time from 5-10 days to just under 24 hours.
Corporate – M&S Reporting
Ferrari yesterday beat earnings expectations with a $1.08 EPS – 12c higher than expected, on revenues of $1.04 bn – down 3% YoY. And Credit Agricole provided a 1.6% increase in revenues YoY to €8.46 bn.
Today’s earnings calendar includes reports from Marks & Spencer, Delhaize, Qualcomm, Apache, Danske Bank, Perrigo, Hologic, Lincoln International, Metlife, Marriott & BMW.
Oracle, Amcor, JPMorgan, will hold shareholders meetings.
|8:15AM-3 PM GMT||Europe, UK & US||Services & Composite PMIs|
|10:00 AM GMT||EU||PPIs|
|12:00 PM GMT||US||Mortgage Applications. ADP Employment Change at 1:15, & Trade Balance at 1:30|
|03:30 PM GMT||OIL||EIA Crude Oil Stocks Change|
|Midnight GMT||NZ||Business Confidence|
|00:30 AM GMT(+1)||Australia||Trade Balance|