𝙄𝙩 𝙬𝙖𝙨 𝙖 𝙡𝙤𝙨𝙞𝙣𝙜 𝙬𝙚𝙚𝙠 𝙛𝙤𝙧 𝙢𝙤𝙨𝙩 𝙖𝙨𝙨𝙚𝙩 𝙘𝙡𝙖𝙨𝙨𝙚𝙨 𝙧𝙚𝙖𝙡𝙡𝙮. 𝙀𝙦𝙪𝙞𝙩𝙞𝙚𝙨 𝙬𝙚𝙧𝙚 𝙙𝙤𝙬𝙣 (𝙬𝙞𝙩𝙝 𝙚𝙭𝙘𝙚𝙥𝙩𝙞𝙤𝙣 𝙤𝙛 𝙅𝙖𝙥𝙖𝙣), 𝙥𝙧𝙚𝙘𝙞𝙤𝙪𝙨 𝙢𝙚𝙩𝙖𝙡𝙨 𝙬𝙚𝙧𝙚 𝙨𝙩𝙞𝙡𝙡 𝙙𝙤𝙬𝙣 𝙖𝙣𝙙 𝙤𝙣𝙡𝙮 𝙗𝙤𝙣𝙙𝙨 𝙖𝙙𝙙𝙚𝙙 𝙨𝙤𝙢𝙚𝙬𝙝𝙖𝙩, 𝙖𝙨 𝙩𝙝𝙚 𝙮𝙞𝙚𝙡𝙙 𝙣𝙖𝙧𝙧𝙤𝙬𝙚𝙙 𝙖 𝙡𝙞𝙩𝙩𝙡𝙚 𝙗𝙞𝙩 𝙖𝙛𝙩𝙚𝙧 𝙖 𝙗𝙞𝙜 𝙧𝙖𝙡𝙡𝙮 𝙩𝙝𝙚 𝙬𝙚𝙚𝙠 𝙗𝙚𝙛𝙤𝙧𝙚.
One of the sectors that lost the most this week was Clean Energy. This possibly had to do with (a) very overbought conditions in this space and (b) ongoing troubles with putting Joe Biden in the Presidential seat due to violence stemming from supporters of D.Trump. The ICLN.US clean energy ETF lost 12% on week. Recent leading stocks from this sector like $SEDG (SolarEdge Technologies) (-20%) or $VWS.CO (Vestas Wind Systems A/S) (-13%) suffered a correction. Such corrections are obviously inevitable given the scale of the sector’s rise in recent months. $SPX500 is 1,5% off it’s ATH as of Friday close. Huge volatility was also seen in crypto assets ($BTC ).
𝗟𝗮𝘀𝘁 𝘄𝗲𝗲𝗸
👉 On Monday the Democrats were seeking a vote on President Trump’s impeachment due to the recent Washington riots. Talks and speculations about further violence around the inaugoration of President-elect Joe Biden continued throughout the whole week pretty much. $TWTR (Twitter) permanently suspended Trump’s account. Similar actions were taken by $AAPL (Apple) and $GOOG (Alphabet) against the rightist rioters in what was reported to be a trial of curbing further potential violence.
👉 Some of the pharma space did well last week on the other hand. $BIIB (Biogen Inc) announced an over 10% stake in $SAGE (Sage Therapeutics Inc) (In November 2020 both the companies teamed up to develop therapies in depression) and kept capitalizing on the positive mood from $LLY (Eli Lilly & Co) ‘s recent Alzheimer news. $BIIB was up 7% on week.
👉 Wednesday’s headlines were dominated by $INTC (Intel) . The company decided to pursue an overhaul of its management board. CEO Bob Swan announced he’s leaving and will be replaced by $VMW (VMware) CEO Pat Gelsinger. Reacion was very positive and stock surged even 10% intraday. Investors expect a clear way out of $INTC‘s troubles with deliveries and losing market share. Some other high-tech bluechips followed Intel higher on Wednesday ($MSFT (Microsoft), $NFLX (Netflix, Inc.) , $AAPL ).
👉 On Thursday investors again and again awaited the announcement of the $2tn stimulus plan from Joe Biden. Stocks closed slightly lower.
👉 The same day we got worse-than-expected weekly jobless data (965k vs. 800k est.).
👉 The market got what it wanted in regards to the stimulus announcement into Friday. The banks also kicked-off the 4Q20 reporting season. $C (Citigroup), $JPM (JPMorgan Chase & Co) and $WFC (Wells Fargo & Co) all beat market expectations. Still they all closed lower on the day and so did the wide market to finish the week.
👉 𝙀𝙛𝙛𝙚𝙘𝙩𝙞𝙫𝙚 𝙬𝙚𝙚𝙠𝙡𝙮 𝙞𝙣𝙙𝙚𝙭 𝙘𝙝𝙖𝙣𝙜𝙚𝙨: $SPX500 -1,5%, $NSDQ100 -2,3%, EuroStoxx600 -0,8%, $GER30 -1,9%, $JPN225 +1,4%.
𝗢𝘁𝗵𝗲𝗿 𝗺𝗮𝗿𝗸𝗲𝘁𝘀 𝗲𝘃𝗲𝗻𝘁𝘀:
👉 𝘽𝙤𝙣𝙙𝙨: the US yield curve (10y-FF) stays at elevated levels above 100bps but narrowed somwhat on week, the German curve (10Y Bunds-3M) narrower at 6bps. EuroArea AAA-rated bonds yield curve at 12bps. High Yield Spreads at 3,7.
👉 𝘾𝙤𝙢𝙢𝙤𝙙𝙞𝙩𝙞𝙚𝙨 (𝙚𝙭 𝙤𝙞𝙡): $GOLD -1,2%, $SILVER -2,6% on week. Both sted vulenarble still after the plunge form the week before.
👉 𝙊𝙞𝙡: -0,7% on week. Not much action.
👉 𝘾𝙪𝙧𝙧𝙚𝙣𝙘𝙞𝙚𝙨: DXY (Dollar Index) +0.8% on week, $EURUSD -1,2%.
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