News / Analysis
Finance Update – Central Bankers MeetingNovember 11, 2020
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 interestThe cost of accessing money not owned. 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 turnoverThe amount of money received by a company over a period, or the rate at which employees are replaced....
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.
|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 InflationThe rise in prices for goods and services, resulting in the deterioration of a currency’s purchasi... Expectations|
|00:01 AM GMTGreenwich Mean Time (usually equals UTC – Universal Coordinated Time). GMT is a time zone, while U... (+1)||UK||Housing Price Balance|
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