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Finance Update – Pharma Fervour Abates

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Asia – Asia flounders

Asian indices are mainly down this morning, except the Shenzhen Composite which is gaining 0.45% and the Nikkei, 0.68%.

Machinery orders in Japan contracted by a better-than-expected 11.5% in September YoY, and producer deflation remained level with the month before.

Australian consumer inflation expectations for November increased nicely to 3.5%; and in New Zealand house prices increased by 3.5% – a per cent higher than in September – and visitor arrivals dropped off marginally.

Europe – UK leaking

European indices yesterday maintained some upward momentum, the FTSE adding 1.35% and the DAX 0.4%.

The pound this morning harshly ended its week-long rise as September’s trade surplus decimated to £0.61 bn from £2.85 bn the month before. Q3 GDP, at a 15.5% increase, didn’t quite erase the 20% pandemic contraction and missed expectations by a 1/3 of a per cent, and both manufacturing and industrial production missed the mark considerably.

Meanwhile, British Chartered Surveyors report a 21-year record high in house price growth in October, the index hitting 68.

In Germany, CPIs remained flat with the September figure – as expected.

Americas – Mortgages down

With index futures mainly down this morning, the NASDAQ managed to recoup some of the week’s losses yesterday on a return to tech stocks, as the DOW ended fractionally down now that pharma stocks are returning to pre-exuberance highs.

The USD failed to break through resistance at 93.2 yesterday and is attempting that again today after mortgage applications decreased by 0.5% this past week – this after expanding by 3.8% the week before.

Corporate – Pfizer head sells shares

Alibaba only added 2.25% during the Asian session, even after Singles Day sales this year topped $74 bn. And Reuters reports that Pfizer (-0.47%) Chief Executive Officer Albert Bourla sold company shares worth $5.56 mn on Monday, just as interim COVID tests were announced. Shares have since been consolidating down.

Earnings-wise, Burberry this morning announced a 31% drop in revenues in Q3 to $1.16 bn. And Deutsche Telekom revenues jumped 31% to €26.4 bn.

Merck, Cisco and Disney report earnings today. Citizens Financial and Synchrony financial pay dividends and Woolworths will hold a general shareholders meeting.

Events

10:00 AM GMT EU Industrial Production
01:30 PM GMT US CPIs & Jobless Claims
09:30 PM GMT NZ Business PMI

Analysis

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