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Finance Update – Central Bankers Meeting

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Asia – NZ maintains rates

Chinese indices continue red this morning led by the Shenzhen’s 1.77% loss. The Hang Seng is up 0.35% and the Nikkei 1.78%.

The NZD shot up 0.91% overnight after the nation’s central bank maintained a 25 BP interest rate. The AUD was less bountiful as Westpac announced a mere 2.5% improvement in consumer confidence for November – a fifth of the month before.

Europe – Biden to Johnson: Don’t touch Good Friday

European equities were mainly up yesterday led by Belgium’s 3.86% rise. The FTSE gained 1.79% and the DAX 0.51%.

The Euro is having a harder time after yesterday’s economic sentiment markers missed expectations – a decline to 32.8 points in Europe and to 39 in Germany – this while industrial output in Italy contracted 5.6% MoM in September.

The pound, on the other hand, inexplicably shot up 100 pips yesterday after the UK’s report of a 5-year record high unemployment figure. 314K employees lost their jobs in Q3.

Meanwhile, Irish-blooded US President-elect Joe Biden reiterated that a post-Brexit deal with the US is subject to maintaining the 1998 Good Friday peace accord. Boris Johnson called Biden to congratulate him yesterday.

Americas – Businesses still optimistic

Equities in the US began turning around yesterday when the S&P (-0.14%) joined the NASDAQ (-1.37%) in its southward shunt. The Dow (+0.9%) and the Russell (+1.72%) maintained their optimism.

The dollar continues sideways for the 2nd day in a row as October’s business optimism index managed to maintain an even 104. The Redbook Index, on the other hand, contracted by 1.2% MoM during the 1st week in November.

ECB President Christine Lagarde, FED Governor Jerome Powell and BoE Governor Andrew Bailey will digitally meet today at the ECB for a 2-day conference to discuss the unprecedented boost to monetary stimulus and interest rate slump, globalisation, climate change and digitalisation.

Commodities – API expecting another drawdown

The API report delayed by a day, this week, Reuters this morning quoted “industry sources” saying that WTI stockpiles had fallen 5.1mB last week – half the expected drawdown. Oil added $3 throughout the day yesterday.

Corporate – EU charges Amazon

Joining the US Congress’ antitrust report, the EU has formally charged Amazon (-3.46%) with monopolistic behaviour following an EC investigation. If found guilty, Amazon could be fined up to 10% of its global turnover.

And American Airlines (-6.21%) has proposed a $38.5 bn discounted stock issue. So far this year, AA has underperformed the DJ Transport Average, falling 54% compared to the latter’s 6.5% increase, Reuters reports.

Lyft yesterday lost 4.2% on its reported 48% drop YoY in revenues to $499.74 mn. Shares lost $1.46 in earnings each. Beyond meat plunged 20% before hours, recovering 4 of those on disappointing earnings – a 21.64% drop YoY to $117.93 per share. Adidas (-3%) missed expectations by dropping 10.2% to $682.69 mn revenues, earnings down to $3.31 per share. And Siemens (+1.6%) revenues were down 5%YoY to €27.5bn with EPS at €2.21.

ABN-AMRO, Vodafone and E.ON report earnings, and Westpac announce ex-dividend today.

Events

01:00 PM GMT EU ECB President Lagarde speech
08:00 PM GMT NZ House Prices. Visitor arrivals at 9:45
09:30 PM GMT OIL API Weekly Crude Oil Inventories
11:50 PM GMT Japan PPI, Machinery Orders & Foreign Investments
Midnight Australia Consumer Inflation Expectations
00:01 AM GMT (+1) UK Housing Price Balance

Analysis

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