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๐ผ ๐จ๐ก๐๐๐๐ฉ๐ก๐ฎ ๐๐ค๐ง๐ง๐๐๐ฉ๐๐ซ๐ ๐ฌ๐๐๐ ๐๐๐๐๐ฃ๐ ๐ช๐จ. ๐๐๐ ๐๐ค๐ง๐ง๐๐๐ฉ๐๐ค๐ฃ ๐ฌ๐๐จ ๐๐๐๐ค๐ข๐ฅ๐๐ฃ๐๐๐ ๐ฌ๐๐ฉ๐ ๐ ๐ก๐๐ฉ๐ฉ๐ก๐ ๐ฉ๐๐ก๐ฉ ๐ฉ๐ค๐ฌ๐๐ง๐๐จ ๐๐ง๐ค๐ฌ๐ฉ๐ ๐๐ง๐ค๐ข ๐ฉ๐๐ ๐ง๐๐๐๐ฃ๐ฉ๐ก๐ฎ ๐๐ฃ-๐ซ๐ค๐๐ช๐ ๐๐๐ก๐ช๐ ๐จ๐ฉ๐ค๐๐ ๐จ. ๐๐๐จ๐๐๐ก ๐ฉ๐๐ก๐ ๐จ ๐จ๐๐๐ข ๐ฉ๐ค ๐๐ ๐ฃ๐๐ซ๐๐ง ๐๐ฃ๐๐๐ฃ๐ ๐ฃ๐ค๐ฌ ๐๐ฃ๐ ๐๐ฃ๐ซ๐๐จ๐ฉ๐ค๐ง๐จ ๐จ๐ฉ๐๐ก๐ก ๐๐๐ฉ ๐ฃ๐ค ๐๐๐๐ก ๐ค๐ฃ ๐ ๐ฃ๐๐ฌ ๐จ๐ฉ๐๐ข๐ช๐ก๐ช๐จ. ๐พ๐ค๐ซ๐๐-๐ญ๐ต ๐๐๐จ๐๐จ ๐๐ง๐ ๐จ๐ฉ๐๐ก๐ก ๐ค๐ฃ ๐ฉ๐๐ ๐ง๐๐จ๐ ๐๐ฃ ๐๐๐ฃ๐๐ง๐๐ก ๐ฅ๐ช๐ฉ๐ฉ๐๐ฃ๐ ๐ฅ๐ง๐๐จ๐จ๐ช๐ง๐ ๐ค๐ฃ ๐จ๐๐ค๐ง๐ฉ-๐ฉ๐๐ง๐ข ๐ค๐ฅ๐ฉ๐๐ข๐๐จ๐ข.
Equity indices took a breather this week after having eked out new all-time highs (ATH) in the previous week and intra-week ATH this Wednesday. $SPX500 slid 1% on week and so did other American as well as EU and JP stocks. The commodities front calmed down. Here’s what was up…
๐๐ฎ๐๐ ๐๐ฒ๐ฒ๐ธ
๐ On Monday a clear outperformance of Growth vs. Value was seen. Whilst $DJ30 dropped, Nasdaq was still up. Similar tendency was seen in the mid-cap space represented by iShares Russell 1000 Value ETF ($IWD) and the iShares Russell 1000 Growth ETF ($IWF).
๐ At the start of the week BlackRock made a bullish call for equities for 2021 seeing a “powerful restart of the economy”: www.cnbc.com/2020/12/07/blackrock-takes-equities-to-overweight-for-2021-sees-powerful-restart-to-the-economy.html?__source=newsletter%7Ceveningbrief
๐ On Tuesday UK started their vaccinations for Covid-19. Shares of $PFE (Pfizer) jumped 3%. The US approval of their vaccine is still due.
๐ On Wednesday ๐๐ ๐๐๐๐๐ข๐ ๐ฉ๐๐ ๐ญ๐จ๐ฉ ๐๐ค๐ช๐ฃ๐ฉ๐ง๐ฎ ๐ฉ๐ค ๐๐ฅ๐ฅ๐ง๐ค๐ซ๐ ๐ฉ๐๐ $๐๐๐ -๐ฝ๐๐ค๐๐๐๐๐ ๐ซ๐๐๐๐๐ฃ๐, pouring further optimism into the market. Indices closed at yet new highs on that day. Energy names poped higher as well ending up 1.5% on the day. Revival play stocks like $DD (DowDuPont Inc) , $JNJ (Johnson & Johnson) and $MMM (3M) also led the gains.
๐ Wednesday turned out corrective for the high-tech space mainly. Semiconductors, $AAPL (Apple) , $CRM (Salesforce.com Inc) , $FB (Facebook) were all down on day. Nasdaq slid almost 2%. The drop had no characteristics of deeped sell-offs. Volatility generally remained low as measured by the VIX.
๐ ๐๐๐๐ ๐ก๐ฎ ๐๐ค๐๐ก๐๐จ๐จ ๐๐ก๐๐๐ข๐จ ๐๐๐ข๐ ๐ค๐ช๐ฉ ๐๐๐ค๐ซ๐ ๐๐ญ๐ฅ๐๐๐ฉ๐๐ฉ๐๐ค๐ฃ๐จ ๐ค๐ฃ ๐๐๐ช๐ง๐จ๐๐๐ฎ. The number for preceeding week hit 853k vs. 730k expected. Weaker labour market data spurred renewed pressure on Washington to reach a consensus on new stimulus as soon as possible. The need for additional support was sounded out from different sources again.
๐ On Friday $DIS (Walt Disney) ๐๐ก๐๐ฌ ๐๐๐๐๐๐ง ๐๐จ ๐๐ฉ ๐ง๐๐ซ๐๐๐ก๐๐ ๐๐ช๐ก๐ก๐๐จ๐ ๐จ๐ฉ๐ง๐๐๐ข๐๐ฃ๐ ๐ฅ๐ง๐ค๐๐๐๐ฉ๐๐ค๐ฃ๐จ. ended up 13%. The media copmany expects to have 230-260m subscribers by 2024. The broad market still struggled though and indices ended lower for the third consecutive day.
๐ ๐๐๐๐๐๐ฉ๐๐ซ๐ ๐ฌ๐๐๐ ๐ก๐ฎ ๐๐ฃ๐๐๐ญ ๐๐๐๐ฃ๐๐๐จ: $SPX500 -1%, $NSDQ100 -1.2%, EuroStoxx600 -1%, $GER30 -1.4%, $JPN225 -0.4%.
๐ข๐๐ต๐ฒ๐ฟ ๐บ๐ฎ๐ฟ๐ธ๐ฒ๐๐ ๐ฒ๐๐ฒ๐ป๐๐:
๐ ๐ฝ๐ค๐ฃ๐๐จ: the US yield curve (10y-FF) took a breather this week ending 85bps, the German curve (10Y Bunds-3M) currently at 11bps with 10Y Bunds at -0.63%, as their prices took a jump vs. last week. EuroArea AAA-rated bonds yield curve stands at 16bps. High Yield Spreads keep falling towards 4.
๐ ๐พ๐ค๐ข๐ข๐ค๐๐๐ฉ๐๐๐จ (๐๐ญ ๐ค๐๐ก): Gold ($GLD) flat on week, Silver ($SLV) -1% on week. Not much action here.
๐ ๐๐๐ก: added 1.3% and WTI hovers around $45-46
๐ ๐พ๐ช๐ง๐ง๐๐ฃ๐๐๐๐จ: DXY (Dollar Index) up 0.3% on week, $EURUSD flat.
Major macro events:ย (times are CET; source:ย tradingeconomics.com):
Next Weekโs major macro events:ย
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GlobalAlphaSearch.com
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