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Contents Click on the links below to get to the stuff you really really want. USA – Tech stocks lift indices to more record highs; Goods data positive; Everyone awaiting to hear what Jackson Hole emits (#USA) UK – Tech stocks up, oil stocks down on hurricane worries (#UK) Continental Europe – Stocks lifted by extension of German welfare support programme (#Europe) Elsewhere – Taiwanese stocks followed US techs up; Rest of region more mixed (#Elsewhere) WTF – Jackson Hole (#WTF) Links (#Useful) Numbers (#Numbers) Ts & Cs (#Ts+Cs)
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USA
Folk are waiting to see what comes out of Jackson Hole as financial bods from all over the world squeeze into the aforementioned cavity, much to the alarm of Mr. Jackson. Yes, it’s the annual financial shindig in the middle of butt-end nowhere, Wyoming. If you’ve not been to Wyoming, don’t bother. It’s large, rectangular and dull. So the financial folk will feel very much at home, even if Mr. Jackson needs several weeks of therapy and quite a few rolls of Andrex to recover.
As folk sit around in anticipation of clues on future central bank policy, tech stocks continued their inexorable rise, pushing US stock indices to ever higher records. This is a bit bizarre. The economy is trying to recover, there is political turmoil, international trade tensions and yet the S&P 500 rose 1.0% to a new record high. Whatever Jackson Hole egests could sustain that stock price optimism, or it could dump pressure all over it.
Meanwhile, the latest round of economic data provided a more solid reason for optimism. Orders for durable goods rose way beyond expectations in July, suggesting that factories have a brighter-than-expected immediate outlook.
A quick look at the world of bonds tells me that bond investors appear largely unmoved by the stock price euphoria. The demand for and prices of benchmark 10-year Treasuries (US government bonds) remained fairly steady, leaving their yields below 0.69%, a long way off the 1.9% they were trading at in November 2019.
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UK
With tech stocks advancing in the US while investors awaited the fallout from Jackson Hole, UK tech stocks rose and oil stocks fell. It would appear that the hurricane heading for the oil producing southern states of the US could be very damaging for oil companies working thereabouts.
The FTSE 100 stayed fairly unchanged overall as rises in technology stocks were offset by falls in oil stocks. But the FTSE 250 had a better day. It rose by 1.0% thanks to its relatively small oil sector having a less negative effect against rises in other sectors.
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Continental Europe
Germany extended its welfare support programme designed to keep millions from losing their jobs during the lockdown. This boosted optimism and stock prices across the European mainland sending the Euro Stoxx 50 and German DAX up by 0.8% and 1.0% respectively.
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Elsewhere
Taiwanese stocks followed their US tech counterparts up as usual this morning, but the rest of the region was more mixed as folk try to work out what’s going on between the US and China.
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WTF (What’s The Fact?)
Jackson Hole
“Home to upscale ski resorts, rustic campsites and dude ranches.”
Dude ranch
“Enjoy the perfect wild west experience, including horseback riding & more.”
Misdemeanour
“In most states, the main distinguishing feature of a misdemeanour is that it is usually punishable by a sentence of one year maximum in a county jail facility.”
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Links
Investopedia (www.investopedia.com/dictionary/) – Loads of free explanations of financial terms including some helpful videos. Not 100% accurate, but a good starting point Guffipedia (ig.ft.com/sites/guffipedia/) – Lucy Kellaway of the FT has collected some painful examples of corporate people disappearing up their own analogies Guardian (www.theguardian.com) – Free to access website with a couple of decent columnists (e.g. Nils Pratley and Larry Elliott) Times of India (timesofindia.indiatimes.com) – Why use five words when 37 will do? Daily Mail (www.theatlantic.com/magazine/archive/2016/07/the-war-on-stupid-people/485618) – Click it. I dare you.
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———————————————————— IMPORTANT This is my opinion. Yes I read a lot and share what I’ve read with you, but this content remains my opinion. It’s NOT advice. If you take my advice – don’t take my advice. Any decisions you make about investments, your hairstyle or whether or not to eat marzipan are entirely at your own behest. If you are too stupid to recognise the devil’s ear wax when you see it, then you’re on your own.
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