News / Analysis
Finance Update – Central Bankers MeetingNovember 11, 2020
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.
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.
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.
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.
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.
|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|