Click here to view this email in your browser (mmmmaven.com/daily-market-update-dmu/)
Sign Up Here (mmmmaven.com/dmu-sign-up/) for Free to the DMU Email me to provide feedback
Contents Click on the links below to get to the stuff you really really want. USA – Mining and tech lead stock gains despite rising virus cases (#USA) UK – Bank of England to inject more new cash into the system; Oil prices down; RSA rockets on takeover (#UK) Continental Europe – Rally continued across the continent led by tech and basic materials (#Europe) Elsewhere – Rally slowed this morning as we await US clarity (#Elsewhere) WTF – The count goes on (#WTF) Links (#Useful) Numbers (#Numbers) Ts & Cs (#Ts+Cs)
————————————————————
USA
While the vote counting and accusations continue, investors are slowly re-focusing on the realities of what’s going on outside of the election. Specifically, the US became the first country to top 100,000 coronavirus infections in a single day. This led the chairman of the Federal Reserve (US central bank), Jerome Powell, to warn that infection rates present a risk to the economic recovery. In any other country this would rightly be greeted with a chorus of “no s*** Sherlock”. But, in a country with swathes of people who believe what they want to regardless of the facts, this sort of thing needs to be spelt out.
Meanwhile, the stock rally continued as investors wanted to believe that things would get better fairly soon. Every sector of the S&P 500 closed 1.9% higher yesterday with mining and technology stocks leading the gains.
Back to Contents (#Contents)
————————————————————
UK
The stock rally in the UK slowed down yesterday leaving the FTSE 100 and FTSE 250 0.4% and 0.7% higher on the day. Banks are digesting the news that the Bank of England will pump more cash into the financial system. This continues to make it difficult for commercial banks to make a profit on money that they lend to customers, hence their stocks have dropped over the past day or two.
At the same time, oil prices have dropped again, dragging oil producers down. And Sainsbury announced a bunch of shop closures which sent its share price down. Rolls Royce slumped again (nothing new there) but there was one company that had a spectacular day: RSA Insurance rocketed by 45.8% after it looked likely to accept a massive takeover offer from the pairing of Denmark’s Tryg and Canada’s Intact Financial.
Back to Contents (#Contents)
————————————————————
Continental Europe
On the continent, stocks were having a more positive day overall. The Euro Stoxx 50 and German DAX added 1.7% and 2.0% respectively, despite virus cases on the rise in France among other countries. Basic materials and technology companies were on the rise again, while oil majors declined.
Back to Contents (#Contents)
————————————————————
Elsewhere
The rally has slowed, but much of the Asia Pacific region has delivered more stock price gains this morning. The exception is China where stocks have nudged downwards.
All in all, we’re waiting to see what comes out of the US election.
Back to Contents (#Contents)
————————————————————
WTF (What’s The Fact?)
The count goes on
Apparently, his favourite password is “1234”.
Back to Contents (#Contents)
————————————————————
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.
Back to Contents (#Contents)
———————————————————— 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’re unable to recognise the devil’s ear wax when you see it, then you’re on your own.
————————————————————
============================================================ Copyright © 2020 Chris Hurst, All rights reserved.
Want to change how you receive these emails? You can ** update your preferences (funnymoney.us4.list-manage.com/profile?u=09a51282c76deb2dc44653051&id=dcc3fa0043&e=f68b7163ab) or ** unsubscribe from this list (funnymoney.us4.list-manage.com/unsubscribe?u=09a51282c76deb2dc44653051&id=dcc3fa0043&e=f68b7163ab&c=8bfd81c888) .