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Contents Click on the links below to get to the stuff you really really want. USA – Jobs data not looking positive; Financial package inching closer; Tech stocks lead overall rises (#USA) UK – Rise in virus cases and lockdown restrictions sent stocks sharply lower; Sunak’s latest pledge was unconvincing; Rising pound and falling oil prices didn’t help (#UK) Continental Europe – Retail, oil and financials took a dive; Business confidence improved in France and Germany (#Europe) Elsewhere – Stocks mixed on virus case rises and potential US financial support (#Elsewhere) WTF – Spherical speakers (#WTF) Links (#Useful) Numbers (#Numbers) Ts & Cs (#Ts+Cs)
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USA
Different factors combined to leave stocks little changed in the US yesterday. Speculation that the next round of jobs data would show progress stalling combined with rising virus cases and worries over the economic outlook to provide the negative influence.
On the positive side of things, politicians appeared closer to agreeing a financial support package, though it’s still thoroughly uncertain. For his part, chairman of the Federal Reserve, Jerome Powell, noted the likely need for additional fiscal support i.e. the government needs to get sorted and provide more financial assistance.
The S&P 500 closed 0.3% higher on the day with technology stocks continuing to lead rises, while the demand for and prices of lower-risk rated bonds remained steady; bond investors continue to be cautious over the battle with the virus and the economic recovery.
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UK
The sharp rise in virus cases and increased lockdown restrictions took its toll on UK stocks. The FTSE 100 and FTSE 250 closed 1.3% and 1.1% lower respectively on the day.
Chancellor of the Exchequer, Rishi Suank, announced a new scheme to try to prevent a huge wave of redundancies at the end of the furlough scheme. This didn’t seem to have a great deal of effect on investor confidence, perhaps because the government has been developing a list of contradictory guidances which might give the impression that the government is making stuff up as it goes along. Heaven forfend.
A slight recovery in the value of the pound and a fall in oil prices provided more “technical” negative influences as far as stock prices were concerned. Every sector of the FTSE 100 dropped, with travel and leisure companies predictably among the worst hit.
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Continental Europe
Retail, oil & gas and financial companies took a dive across the continent as well. The Euro Stoxx 50 and German DAX dropped by 0.6% and 0.3% respectively. But stocks are still bouncing around in value coz there’s not much else that investors can do while interest rates are so low and loads of money is being pumped into the system by central banks.
On a vaguely positive note, the latest confidence surveys showed improved sentiment among German and French businesses. The possible implication that business could pick up in the third quarter of 2020 didn’t hold traction for long as US jobs news came in.
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Elsewhere
The potential for US a new financial support package was counterbalanced by virus concerns across the Asia Pacific region this morning. Chinese, Hong Kong and Korean stocks are close to their respective overall starting prices, while Taiwan’s tech stocks appear to be having a good day.
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WTF (What’s The Fact?)
Spherical speakers
Amazon’s latest wheeze is to come up with a bunch of double entendres. The first is “spherical speakers”. Cyril Smith springs to mind, which is never good, as does tub-of-lard, Michael I-haven’t-done-my-homwork-properly Moore.
The other new product line is Ring security video. Let’s not go there. Cyril Smith would doubtless fill it (the screen that is).
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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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