Hey Everyone, I hope you are enjoying your weekend. Market Price action setting records while Volatility still remains higher than normal, and for good reason. Get my take on the markets below;
WEEKLY SPOUND BITES;
• Most of the major benchmarks added to the previous week’s sharp gains, bolstered by positive vaccine news. All the major indexes touched all-time intraday highs in early trading Monday but surrendered much of their gains at midweek, before rebounding again on Friday… The DOW and the smaller-cap Russell performed best, while slower-growing value shares easily outperformed their growth counterparts and NASDAQ lagged, with tech shares within the S&P trailing most other sectors… The Pfizer news prompted a sharp rally in cyclical shares, especially those of travel and leisure-oriented firms… Growing signs that the pandemic would worsen before it got better seemed to drain the market’s gains over the next few days…
• The week’s relatively light economic calendar offered a mixed picture. Weekly jobless claims fell more than expected and reached a new pandemic low (709,000), while continuing claims fell below 7 million for the first time since March. The National Federation of Independent Business’s measure of small business sentiment surprised investors by remaining steady at pandemic highs, but the University of Michigan’s preliminary measure of consumer sentiment in November missed expectations and fell to a three-month low…
• The yield on the benchmark 10-year U.S. Treasury note ended higher for the week… Early in the week, long-term yields surged to their highest levels since March on encouraging news about Pfizer’s late-stage vaccine trial. However, yields decreased on Thursday amid fears of new lockdowns and weak inflation data, with the headline and core consumer price index readings surprising investors by remaining unchanged in October…Investment-grade corporate bond credit spreads—the additional yield offered over Treasuries, tightened on Monday as news of the potential vaccine boosted sentiment…
• At the ECB’s annual symposium, President Christine “Queen Bee” Lagarde signaled that the central bank would expand its pandemic emergency purchase program (PEPP), which has bought more than EUR 640 billion of bonds, and its targeted longer-term refinancing operations (TLTROs), which have lent almost EUR 1.5 trillion to banks at accommodating rates, by year-end and essentially stating that “All options are on the table”…
• On the geopolitical front, U.S.-China relations suffered their latest setback on Thursday, when outgoing President Trump announced an executive order prohibiting Americans from investing in Chinese firms that his administration claims have ties to the country’s military… Chinese equity investors received unwelcome news after the government released a draft of antitrust guidelines aimed at curbing the power of the country’s leading internet-based platforms…
Enjoy This Week’s Round-Up;
Don’t Be A Rat Brain Trader – Be the Red Stripe Zebra !!
Trade Smart !
hpb
