News / Analysis
Finance Update – Post VP Markets ShyOctober 8, 2020
Asia – Chinese Aluminum imports up
This morning finds New Zealand’s Dow JonesA business and financial news & analysis company that publishes the Dow Jones 30 index, which tracks... up 2.51% and the Nikkei +0.92% while the Hang Seng is down 0.84% with China mixed.
The Yen gained some traction overnight after the national Customs Office reported a ¼ mn yen increase in the nation’s trade surplusA trade balance that is positive as a result of income (exports on the national level) being greater... to ¥413.2 bn in August and an ¥0.7 tn increase in the current accounts surplus to ¥2.1tn.
Europe – Galhau: Leave London
European indices closed mixed yesterday, the CAC40 losing 0.28% and the FTSE 0.06%. The DAX was up 0.17%.
The Euro has been trending sideways after France reported a deterioration in August’s trade balanceThe difference in value between a country’s imports and exports. If a country exports more than it.... This morning, Germany reported a surprising €4 bn reduction in its August trade surplus to €15.7 bn.
In the UK house prices also worsened – falling to 1.6% MoM by Halifax’s September count and 2.3% YoY in July, according to the Office for National Statistics, while the Royal Institution of Chartered Surveyors reported a much better than expected 61% increase to an 18-year high in September. On the other hand, a Reuters’ poll reports improvements in the UK financial sector as earnings from insurance and investmentAn asset (usually money or work) provided to another in expectation of receiving a cash return or be... services grow.
Bank of France Governor Francois Villeroy de Galhau yesterday said financial firms should relocate from London quickly, even if a Brexit deal is finalised, this after UK negotiator David Frost said Britain will abandon talks after the 15th.
Americas – Fed at loggerheads
Despite Trump’s nixing of COVID recovery aid, US indices keep climbing, the Russell2000 adding 2.19% yesterday followed by the DOW’s 1.91%.
The dollar continues weakening after the FED reported a $7.22 bn contraction in consumer credit for August. Yesterday’s minutes show a policy split on forward strategy regarding the level of monthly bond purchases, especially in light of the administration’s refusal to implement a new COVID aid bill. A more hawkish approach is being endorsed by some, like New York’s John Williams, while the doves are represented by Chicago’s Charles Evans.
Commodities – Oil: Delta approaching
As Hurricane Delta approaches the US, closing down some production activities, US Oil bounced off supportThe price level that traders believe represents the lowest value an asset can reach. At this point, ... at $39.32 to stabilise at $40 per barrel after the EIA reported a ½ mB increase in oil stocks.
And gold peaked at 1898 before returning to an 1890 range.
Corporate – FB to ban ads AFTER US vote
Ahead of next week’s Q3 earnings report, Wells Fargo (+2.61%) yesterday announced a 700-job cut in its commercial sector.
And Facebook (-0.21%) said it would ban political ads after the elections. Still ahead today, dividends from GlaxoSmithKline.
|08:30 AM GMT||UK||BoE’s Financial Policy Committee minutes|
|11:30 AM GMT||EU||ECB Monetary PolicyThe tool by which central banks control the flow and availability of money through interest rates, r... Minutes|
|12:15 PM GMT||Canada||Housing Starts|
|12:30 PM GMT||US||Jobless Claims|
|11:30 PM GMT||Japan||Household Spending|
|00:30 AM GMTGreenwich Mean Time (usually equals UTC – Universal Coordinated Time). GMT is a time zone, while U... (+1)||Australia||Home Loans & investing|
|01:45 AM GMT (+1)||China||Caixin Services PMI|
|06:00 AM GMT (+1)||UK||Trade Balance, GDP & Manufacturing Production|
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