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Contents Click on the links below to get to the stuff you really really want. USA – A (#USA) UK – A (#UK) Continental Europe – A (#Europe) Elsewhere – A (#Elsewhere) WTF – A (#WTF) Links (#Useful) Numbers (#Numbers) Ts & Cs (#Ts+Cs)
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USA
The focus is shifting towards the near-term challenges in the US as virus cases inexorably rise and increased lockdown restrictions appear more likely. The efforts among lawmakers to come up with a mutually acceptable financial support and stimulus package continues to deliver nothing but frustration. The deadline was to be Friday night; that could be postponed.
With this worrisome background, the familiar pattern of technology stocks rising and oil, minerals, financials and travel companies falling returned yesterday to leave the S&P 500 0.2% down while the tech-heavy Nasdaq Composite added 0.4%.
The demand for and prices of lower-risk rated bonds also increased, leaving the benchmark 10-year Treasury (government bond) price up and its yield down. The general trend for that bond’s yield has been one of gradual increases as money slowly moves out of low risk stuff and back into stocks, leaving it at around 0.92% today, up from August’s 0.51% low, but still way off last December’s 1.93%.
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UK
Negotiations over a Brexit deal have continued to flounder, leaving a full departure from the EU increasingly likely. Bojo is set to travel to Brussels to stock up on chocolate and waffles before prices jolt upwards in the UK. While he’s there, he’s also going to bluster in the general direction of EU President, Ursula von der Leyen and, according to some sources, possibly back down on some of the unilateral changes he threatened over the Brexit divorce deal he signed with the EU.
Meanwhile, the value of the pound fell, reflecting broad investment concerns over the short-term outlook for the UK economy should it face a sudden separation from the trading partner with which it exchanges half of its exports and imports.
The pound’s move helped export-focused companies, sending the FTSE 100 to a 0.1% overall rise yesterday. But even on that index, financial stocks took a battering. The more domestically focused FTSE 250 showed a more straight-forward reflection of concerns; it dropped by 1.3% on the day, with losses posted broadly across all but one industrial sector.
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Continental Europe
The general backdrop of things to worry about nudged the major European stock indices down yesterday. The Euro Stoxx 50 and German DAX both lost around 0.3% on the day.
Linde, which has been having a torrid time of late, recovered some ground to lead the chemicals sector up, and technology stocks were also seen as a place to put money while the US virus numbers rise and no stimulus appears imminent.
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Elsewhere
Stocks were mixed across the Asia Pacific region as folk tried to anticipate what will happen next with virus cases and stimulus, especially in the US.
Japanese shares were heading for pronounced losses before the country’s prime minister, Yoshihide Suga, announced a $380 billion fiscal stimulus package to support the economy’s recovery from the pandemic.
Elsewhere, the tech-heavy Taiwan 50 was up fairly robustly, while other indices (notably the export-focused Korean Kospi) were down.
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WTF (What’s The Fact?)
Breaking wind
“Breaking” has been included in the line up for the 2024 Paris Olympic Games. I could stop there, but I shan’t. Other newly introduced sports include: surfing, skateboarding and climbing. So we can look forward to an excitingly narrow range of parlance.
While skateboarders display their fakie stance, climbers avoid barn doors and surfers bemoaning anything gnarly, breakers will be hiding their stash of weed and running from the competition just after the lighting effects guy switches on the blue flashing lights.
I’m looking forward to that and tempted to go dressed as a plain-clothes detective. That might sound like a contradiction in terms, but they’re pretty obvious: short hair, slim build, caucasian, in pairs and staring at spotty teenagers who hang around skate parks. Should be fun.
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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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============================================================ Copyright © 2020 Chris Hurst, All rights reserved.
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