News / Analysis
Finance Update – The London Blitz RevisitedAugust 11, 2020
Asia – Tesla sales soar in China
Asian indices were all up yesterday, save New Zealand’s Dow, which lost 0.53% and Taiwan’s weighted index: -0.56%. The Hang Seng soared by 2.26%, despite rising US-Sino tensions.
The Yen also gained 1.84% as the Yen continues wedging down towards 0.943 despite a trade deficitA trade balance that is negative as a result of cost (imports, on the national level) being greater ... narrowing to ¥-77.3 bn in June and current accounts surplusA trade balance that is positive as a result of income (exports on the national level) being greater... exceeding expectations at ¥167.5 bn – still, though, a 5-year low.
The AUD is up 32 pips as Reuters reports an easing of unemployment gains and Victoria COVID cases crest.
And China auto sales increased for the 4th month in a row, according to the China Association of Automobile Manufacturers, Tesla alone reporting 11,000 locally-produced cars sold in July.
Americas – SEC to delist non-compliant Chinese shares
Reuters also reports that the SECThe US Securities & Exchange Commission is the US regulator of financial markets. is expected to adopt Treasury Sec Mnuchin’s recommendation to delist Chinese companies from US indices by the end of 2021 unless these comply with accepted accounting standards.
The Dow-Nasdaq spreadThe variance between the quoted buy and sell price of an asset. In forex it represents the moneychan... continues to widen as the former closes down 0.39% on tech sector losses and the latter up 1.3% Monday.
The USD this morning continues to reject resistanceThe price level that traders believe represents the highest value an asset will reach before reversi... at 93.70 despite an excellent JOLTS job openings report yesterday – 5.889 mn new jobs over expectations of 4.9. However, analysts believe that the numbers conceal increasing numbers of workers leaving their jobs owing to contamination fears and the inability to secure childcare services.
Meanwhile, Democrats & Republicans have agreed to resume stalled talks on their 1-3 trillion-dollar stimulus deal, which broke down last week.
Europe – UK headed for century’s worst recession
European equities were in the green yesterday led by the Spanish IBEX’s 1.49% rise. The FTSE was up a 1/3 while the DAX only managed a 1/10th of a per cent.
The Euro is marginally up after Sentix reported a better-than-expected improvement in investor confidence to -13.
The Pound did somewhat better despite a disappointing 4.3% increase in the BRC’s retail sales report last night. The increase is thanks to the reopening of restaurants, pubs, beauty salons, etc.
Ahead of tomorrow’s data deluge, BoE Deputy Gov. Dave Ramsden told the Times yesterday that the bank would increase QE if the economy continues to underperform. Analysts expect confirmation of a recession, with GDP expected to fall for a 2nd quarter in a row – a -22% YoY, the worst performance in a century and the worst in the European area.
Commodities – Oil up on US stimulus hopes
Oil continues up, gaining 75 cents for a barrel of WTI overnight, as hopes continue for successful stimulus talks in the US. And Gold continues down for a 4th day in a row on expectations of a dollar deal.
Corporate – Canopy beats expectations – underperforms
As expected, Canopy (+7.41%) yesterday reported earnings, revenue beating expectations at 110.4 mn CAD (+2.3%). The share is considered over-valued, considering that – despite the introduction of new products – performance remains on par with Q1.
Today, Prudential and Petrofac will be reporting quarterly earnings, and Adidas will hold a shareholders meeting.
|08:30 AM GMT||UK||ILO Unemployment Rate, earnings & claimant Count|
|09:00 AM GMT||EU & Germany||ZEW Economic Sentiment|
|10:00 AM GMT||US||Business Optimism. PPIs & Redbook at 12:30|
|08:30 PM GMT||OIL||API Weekly Crude Oil Inventories|
|10:45 PM GMT||NZ||House Prices, & Visitor Arrivals. TBNZ InterestThe cost of accessing money not owned. Rate & Policy at 2 AM (+1)|
|00:30 AM GMTGreenwich Mean Time (usually equals UTC – Universal Coordinated Time). GMT is a time zone, while U... (+1)||Australia||Consumer Confidence. Wage Price Index at 1:30|
|06:00 AM GMT (+1)||UK||Trade BalanceThe difference in value between a country’s imports and exports. If a country exports more than it..., GDP, Industrial & manufacturing Production, & Business Investments|
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