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Contents Click on the links below to get to the stuff you really really want. USA – New virus cases hits record; Investors moving back into tech; Bond yields stop rising (#USA) UK – Rally continued for a further day, helped by positive macro-economic data (#UK) Continental Europe – Oil and financial stocks heading back down (#Europe) Elsewhere – Rally paused if not halted; Chinese tech stocks recover (#Elsewhere) WTF – A photo that says so much (#WTF) Links (#Useful) Numbers (#Numbers) Ts & Cs (#Ts+Cs)
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USA
The numbers of new daily virus cases have hit more records in the US, and that’s put a halt to the mania over the potential new vaccine. Investors were moving money back into tech stocks yesterday as the perspective of when the vaccine could be deployed combined with the moderate attractiveness of tech stocks that had fallen in price.
That left the tech-heavy Nasdaq Composite 2.0% higher on the day while the more traditional Dow Jones nudged down by 0.1%. The demand for and prices of bonds also ticked up a little after a sharp fall on news of the vaccine. That halted the rising in bond yields for the moment (the price and yield of a bond always move in opposite directions). But the yield is now at around 0.94%, a good deal higher than the 0.51% it dropped to in August when there was no vaccine to talk about but plenty of new cases.
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UK
In the UK, stocks continued to rise yesterday as non-tech stocks managed to sustain a further day or price increases on the back of the, now ageing, virus news. The FTSE 100 and FTSE 250 both added around 1.5% on the day with utilities, financial and oil stocks maintaining their upward momentum.
The latest macro-economic news helped the mood. The UK economy grew by 15.5% in the third quarter of 2020 as measured by gross domestic product. This was a touch lower than expected, but very substantial, albeit still playing catch-up on what has been a fairly disastrous year for economies all over the world, never mind the more important human tragedy.
Manufacturing and industrial production numbers also came in and showed reasonable growth during September.
The stock price rally looks as though it’s running out of steam though, now that the vaccine has been priced into stocks and while virus cases continue to take their toll.
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Continental Europe
The flagging enthusiasm was more evident on the continent where oil and financial stocks were heading down. The overall picture was still one of stock price gains, but I can’t help thinking that the best of the rally has been and gone for the time being.
The Euro Stoxx 50 and German DAX posted modest overall gains of 0.7% and 0.4%. Notable fallers that had benefited from the rally included BNP, ING (banks) and Eni (oil).
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Elsewhere
The rally has paused if not halted across the Asia Pacific region. Stocks are generally down, albeit fairly modestly. Chinese tech stocks were on a bit of a charge earlier today as investors piled in after those stocks had been batted down by Beijing’s assault on “monopolistic behaviour”, which will mean whatever they want it to.
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WTF (What’s The Fact?)
This photo that says so much
Courtesy of Sky News (news.sky.com/story/hong-kong-whats-in-chinas-new-security-law-and-why-has-it-shocked-the-world-12017233)
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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’re unable to recognise the devil’s ear wax when you see it, then you’re on your own.
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