MARKETS USA / Wall Street closes inconsistently with Corona hope | 16.10.20

From Florian Faust

NEW YORK (Dow Jones) – Spending consumers and hopes for a corona vaccine to be available soon gave Wall Street a boost on Friday. Investors were encouraged by strong retail sales data in September. And it could go on like this: the mood of US consumers brightened more than expected in October, as the index calculated by the University of Michigan showed. The fact that industrial production was disappointing was somewhat forgotten.

However, investors lost courage in the late business with rising new infections in some US states and the indices came back significantly from the daily highs. The Dow Jones index advanced 0.4 percent to 28,606 points, the S&P 500 saved a wafer-thin plus at the finish and the Nasdaq composite turned into the red shortly before the end and lost 0.4 percent. At the Nyse there were 1,310 (Thursday: 1,673) winners versus 1,723 (1,373) losers. 81 (77) titles closed unchanged. “In the midst of a stagnant job market, the surge in retail sales this month suggests the strength of consumers with the highest scores we’ve seen in three months is pretty robust,” said investment strategist Mike Loewengart of E-Trade Financial.

Pfizer and Biontech give hope

After Lilly and Johnson & Johnson had recently posted setbacks for their vaccines, a ray of hope came from the cooperation partners Pfizer and Biontech, who are apparently making good progress with their joint corona vaccine candidate. The application for approval for emergency use of the drug could be submitted in the USA by the end of November. The titles of the German Biontech gained 4.1 percent, Pfizer gained 3.8 percent.

Hewlett Packard Enterprise (HPE) turned 4 percent into the red. The provider of servers and network products had published a three-year plan with which the company wants to return to growth. As part of this, HPE had significantly raised its profit forecast for the fiscal year ending 2021. It was above the analyst consensus.

The service provider for the oil production industry Schlumberger had significantly lost sales in the third quarter as a result of the corona-related lower oil demand. The price fell 8.8 percent.

Poker a Navistar

In the struggle for the takeover by Traton, the US commercial vehicle manufacturer Navistar pushed the price up shortly before the end of the ultimatum. The group agreed to be taken over by the Volkswagen subsidiary, but at a price of 44.50 US dollars per share. Traton adjusted its own offer upwards accordingly. The titles shot up 22.9 percent to $ 43.52.

Del Taco restaurants slumped 21.3 percent. The business figures of the fast food chain were by and large as expected, but the share had already gained around 11 percent. In addition, dealers complained about the sales development. JB Hunt Transport Services fell 9.7 percent after submitting weak earnings metrics. Citizens Financial Group fell 4.6 percent, the result of the bank had been burdened by write-offs on loans.

Dollar weakens

On the foreign exchange market, the ICE dollar index lost 0.2 percent, while the euro settled again more clearly above the 1.17 mark. But the euro came back from its daily high of 1.1746. Council member Francois Villeroy de Galhau considered renewed intervention by the European Central Bank (ECB) to be conceivable in the event of a second corona lockdown.

The gold price dropped 0.4 percent to $ 1.90. The predominantly positive economic data and optimism on the stock market weighed on the precious metal. On a weekly basis, gold posted its first loss in three weeks. Waning hopes for an economic stimulus package in the US had the dollar appreciate 0.7 percent during the week and depressed the precious metal.

The oil price tended to hold its own. As before, concerns about demand slowed down the price because of the corona pandemic, which is once again more and more angry, especially in Europe. But there were also concerns on the supply side: traders feared that the oil cartel Opec could soften the subsidy cuts. The oil price was supported by the convincing consumption data from the USA. The barrel of the US WTI variety fell 0.2 percent to $ 40.88, while Brent North Sea oil fell by 0.5 percent to $ 42.93.

As with gold, the supposedly safe haven for bonds was avoided, and the yield on ten-year US government bonds climbed by 0.8 basis points to 0.74 percent. The quotes were primarily impacted by retail data.

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INDEX last +/-% absolute +/-% YTD

DJIA 28.606,31 0,39 112,11 0,24

S&P-500 3.483,81 0,01 0,47 7,83

Nasdaq-Comp. 11.671,56 -0,36 -42,32 30,08

Nasdaq-100 11.852,17 -0,39 -46,41 35,72

US bonds

Maturity Yield Bp to VT Yield VT +/- Bp YTD

2 years 0.14 0.0 0.14 -106.1

5 years 0.32 0.0 0.32 -160.7

7 years 0.52 0.2 0.52 -172.6

10 years 0.74 0.5 0.74 -170.4

30 years 1.53 1.1 1.52 -154.1

CURRENCY last +/-% Fri, 8:27 am Thu, 5:20 pm% YTD

EUR/USD 1,1716 +0,05% 1,1697 1,1698 +4,5%

EUR/JPY 123,48 +0,03% 123,15 123,15 +1,3%

EUR/CHF 1,0722 +0,14% 1,0707 1,0690 -1,2%

EUR/GBP 0,9065 -0,10% 0,9079 0,9052 +7,1%

USD/JPY 105,39 -0,04% 105,28 105,26 -3,1%

GBP/USD 1,2925 +0,16% 1,2884 1,2924 -2,5%

USD/CNH (Offshore) 6,6969 -0,24% 6,7157 6,7166 -3,9%

Bitcoin

BTC / USD 11,288.52 -1.90% 11,340.07 11,400.54 + 56.6%

ROHÖL last VT-Settl. +/-% +/- USD% YTD

WTI/Nymex 40,75 40,96 -0,5% -0,21 -28,3%

Brent/ICE 42,81 43,16 -0,8% -0,35 -30,1%

METALS last previous day +/-% +/- USD% YTD

Gold (Spot) 1.899,60 1.907,80 -0,4% -8,21 +25,2%

Silver (spot) 24.13 24.28 -0.6% -0.14 + 35.2%

Platinum (Spot) 866.00 868.50 -0.3% -2.50 -10.3%

Kupfer-Future 3,06 3,08 -0,7% -0,02 +8,3%

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Contact the author: florian.faust@wsj.com

DJG / DJN / flf

(END) Dow Jones Newswires

October 16, 2020 16:13 ET (20:13 GMT)

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Santiago Stock Exchange and those of Peru and Colombia advance in eventual integration and report new management | Economy

The Santiago Stock Exchange, Next to the Lima Stock Exchange (BVL) and the Colombian stock exchange (BVC) announced an agreement to “manage the hiring of an investment bank of recognized prestige, an expert in asset valuation”.

The above, they added, “in order to prepare an independent valuation report for the three entities.”

This decision, reported by the Santiago Stock Exchange through an essential fact sent to the Commission for the Financial Market (CMF), is a step in the evaluation and analysis process for eventual integration of the infrastructure and services of the three markets.

“Depending on the progress made in the referred study and analysis process, the board of directors will adopt the corresponding agreements in relation to the eventual materialization of the aforementioned integration ”, explained the general manager of the Santiago Stock Exchange, José Antonio Martínez.

He then remarked that any detail in this regard will be reported to the market “as required by current legislation.”

On January 13, the stock market informed the market of its decision to form a commission made up of three directors and the general manager of the entity, in order to carry out a coordinated follow-up of the progress made in the process of study and analysis of technical feasibility, together with the potential paths that would allow progress in an eventual integration with its peers in Peru and Colombia.

The Santiago Stock Exchange is the main stock market in the country. Nowadays trades on average more than US $ 2 billion a day in shares, fixed income instruments, financial intermediation securities, fund shares and foreign securities.

During the last decade, in addition to having an impact at the local level, it has managed to become a focus of interest for global investors and it has prioritized the offer of new financial instruments, such as the creation of tradable funds or ETFs and the Derivatives, Venture and Green and Social Bond markets.

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Franco-Italian Thales Alenia Space wins several contracts

The European Space Agency awards the first installments of two contracts to the Franco-Italian industrialist, for a total value of 600 million euros.

Artist's impression of the Lunar Gateway, the future space station orbiting the Moon.
Artist’s impression of the Lunar Gateway, the future space station orbiting the Moon. Thales Alenia Space

We’ll walk on the moon again. Better still, man will explore the Earth satellite from every angle, passing through the poles and its hidden face. The United States has decided, as part of the Artemis mission, to send four astronauts, including a woman, there in 2024.

Four years from this deadline, and despite the budgetary and technical obstacles, all the lights are green for the program. Piloted by NASA, Artemis would mark humanity’s return to the moon, fifty-five years after the successful Apollo 11 mission in July 1969, when Neil Armstrong and Buzz Aldrin were the first men to set foot on lunar soil.

Europe, via its space agency (ESA), is associated with this very tight schedule. Esa gets into the heart of the matter this Wednesday morning by notifying the first installments of two contracts with a cumulative value of nearly 600 million euros, to Thales Alenia Space (TAS), jointly owned by the defense group French Thales and Italian Leonardo.

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Dawn: Stock markets are trying to knock out the second wave of the pandemic

The second wave of the pandemic is a reality in an increasing number of places in Europe – France, Spain and Belgium in particular see rapid increases in cases. However, even in relatively quiet Germany, nervousness is growing – Angela Merkel spoke at a closed meeting of the ministry yesterday about the fact that Germans can see up to 19,000 new cases a day by Christmas.

Against the background of the second wave of the pandemic, stock markets recorded a fourth week of losses in a row, and as Friday and Monday’s trading showed, prices are already beginning to be attractive to some buyers. It may also have helped that the latest wave of business sentiment in Europe did not look threatening yet. While services are logically bleeding, the industry is surprisingly resilient. However, there is definitely no reason for great optimism yet. However, despite the significant differences between industry and services, the picture of the euro area as a whole does not look encouraging – the aggregate PMI fell to 50.1 points for the second time in a row. This week’s details are also likely to show regional differences between Germany and the countries fully affected by the second wave of the pandemic.

In the face of the second wave, investors will also closely monitor the development of state aid to economies. Many temporary assistance instruments will gradually disappear and it will be important to monitor how generous programs are prepared for the second wave. In the Czech Republic, attention is focused mainly on the new form of kurarbeit, which is to replace the running Antivirus programs. The government’s proposal to the Chamber of Deputies is in many respects the target of criticism, especially among employers who do not like the high participation through social and health insurance payments.


*** MARKETS ***

CZK and bonds

Emerging markets currencies are under pressure, even though stocks are doing relatively well. The tension started by the second wave keeps the koruna above 27.20 EUR / CZK. Probably nothing of the mood can fix her mood in this shortened week. We expect a worse PMI and a neutral minutes from the CNB meeting.

Foreign forex

The Eurodollar remains close to 1.17, although the sell-off in emerging markets continues. The euro is still suffering from the second wave of the epidemic in the eurozone, which is leading to very low inflation and aggressively dovish comments, such as the one yesterday by ECB President Lagarde.

Today, in addition to German inflation and other comments from Fed central bankers, it will be interesting how the Eurodollar will behave during the first debate of US presidential candidates. Donald Trump and Joe Biden will compete in the first of three television debates tonight.

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Dollar leaves the day clinging to the recovery of copper and seeks to leave behind the six consecutive rises

Supported by a rise in copper futures and a drop in the US trillion globally, the exchange rate hovered around $ 785 today.

In the middle of a favorable international environment for the Chilean peso, the dollar in the country lost strength, achieving cut bullish streak that had spread in the last few days.

Bloomberg data locate exchange rate at $ 785.65 at the close of the session, which represents a drop of $ 1.70 compared to its closing price on Friday, after six consecutive sessions of advances.

This drop is supported by a favorable dynamic for the main Chilean export. The copper futures at all maturities rise en bloc on the Chicago commodities market, while the metal’s spot price rose 0.65% on the London Metal Exchange, reaching US $ 2,9808 per pound.

For their part, among the largest currencies in the emerging world, the results are weak. With most of the larger currencies in the overall segment, the Chilean peso and its Colombian peer are the only currencies in the region making progress at this time.

As reported by Bloomberg, the enthusiasm in some emerging currencies was seen overshadowed by end-of-quarter flows, while investors modify their portfolios before the end of September.

Of course, in general, the American banknote is weakening. The Dollar Index – which contrasts it with a basket of hard currencies – scores a decrease of 0.32% right now, moving away from the two-month high it found in Friday’s session.



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It’s not the technology anymore, it’s the economy: Wall Street worries about the rebound and ends with its fourth week in a row down

In Chile, the rise in the IPSA only served to lessen the decline in recent days.

It changed the discourse on Wall Street. If a few weeks ago the blame for the sharp falls that global stock markets had was due to the correction of technology, now operators are looking further and worrying about the economy.

This Friday’s session ended in New York with the S&P 500 rising 1.6% and the Dow Jones rising 1.3%. But the summary of the last five days leaves both indicators with falls of 0.63% and 1.75% respectively. It is the fourth consecutive weekly Wall Street crash.

The rise in coronavirus cases in several countries, that is, the dreaded “second wave” is a reality and the measures taken by governments They revive investors the worst fears of March when the “great lockdown” it devastated the activity and literally knocked the stocks down.

An example of the change in the cash tables is that the titles most punished in the week were those that are more linked to the economic cycle such as banks or producers of raw materials.

An analysis by Bloomberg details that for many weeks investors in the United Statess they ignored that the fiscal stimulus in the main economy was running out, so now they see that the lack of new measures that support the activity puts pressure on companies that find it more difficult to recover lost income in the first part of the year. It is too late for the stock market, the uncertainty of a presidential election has already reached Wall Street.

“There are clear signs that the reopening of the economy has stalled,” Marc Chaikin, founder of Chaikin Analytics, told Bloomberg, adding that “we need another stimulus bill to get the market going again.” But another plan seems difficult, with congressmen focusing on the Supreme Court and a potentially chaotic presidential election looming in November.

In Chile, the IPSA ended Friday’s session with a rise of 0.49%, so the selective was 3,589.04 points. In any case, it was not enough to reverse a black week for local stocks, since the indicator lost 3.77% in the week.



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The dollar closes in Chile with its sixth consecutive rise in the Dollar in Chile with its sixth consecutive rise and remains at highs of almost a consecutive month before a fall in the price of copper

The US currency ended the day at $ 787.35, which is a $ 2.90 advance over yesterday’s session.

Unstoppable. The dollar closed its operations this Friday with an advance against the Chilean peso, before a new fall in the price of copper, the country’s main export product.

The level of the greenback is also seen driven by the new restrictive measures announced by different European governments, with the aim of facing new coronavirus infections.

The above has worried investors, which has been reflected in a deep drop in world stock markets.

In this way, the dollar ended the day at $ 787.35, which is an advance of $ 2.90 compared to yesterday’s session, according to data from Bloomberg. Thus the currency had its sixth consecutive day of rise. The above is in line with the Dollar Index, which rises 0.20% to 94,541 points.

Also, this is the highest value for the exchange rate since August 20.

Copper futures, for their part, they fell 0.44% on the London Metal Exchange, to US $ 2.9550 a pound.

The XTB Latam Market analyst, Sebastián Espinoza, points out that “we should remain attentive to the advance of Covid-19 in Europe and the negotiations of new stimuli in the United States. In addition, new macroeconomic data will be released next week, where it stands out a new revision of GDP for the second quarter in the US, data that, if bad, could increase negative sentiment in the market and prevent copper from recovering US $ 3 a pound in the short term.



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The dollar in Chile closes with a new rise after copper fell below US $ 3

Lack of greater fiscal stimulus to the world’s main economy and new restriction measures to deal with the resurgence in Europe are driving investors out of riskier assets.

The Chilean peso did not have a good day. The outlook for emerging currencies got complicated with investors who bet on the foreign exchange market taking safeguards against the so-called “second wave.”

According to the data provided by Bloomberg, Although the dollar in the local market started rising and at times to exceed $ 790, finally the exchange rate closed with a slight rise of $ 2.3 ending at $ 784.4. In this way, the North American currency ended the day with its sixth consecutive rise.

Copper put pressure on the local currency, since according to Cochilco, The country’s main export product lost 2.78%, thus dropping the barrier of US $ 3 a pound.

The head of Capitaria Trading Studies, Ricardo Bustamante, explained that the “rebound in the greenback occurs in the midst of a fall in copper and a rebound in the dollar worldwide, in addition to downward pressure from emerging currencies.”

Bustamante added that the depreciation of the Chilean peso was due in part to “a company’s recommendation to switch 30% of AFP funds to the riskier fund generates a greater appreciation of the greenback.”

It should be recalled that investors are moving away from riskier assets in recent days as fears about the ability of the world economy to cope with a new outbreak of the pandemic have spread.

The new mobility restrictions in some countries in Europe and added to the lack of greater fiscal and monetary stimuli to push the world economy are the factors that generate alerts among investors.

The US Federal Reserve itself has appealed to the Donald Trump administration and Congress to deliver more fiscal support to the economy.

Thus, everything is aimed at strengthening the dollar worldwide. According to information from Reuters, the greenback against a basket of six currencies, the dollar was up 0.1%, to a two-month high. So far this week it has improved almost 2%, at a time when economic momentum is showing signs of fading.



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Ryanair will open a base in Beauvais

It is the company’s fourth base in France after Marseille, Bordeaux and Toulouse.

By Le Figaro with AFP

Ryanair planes at London Stansted Airport, September 18, 2020.
Ryanair planes at London Stansted Airport, September 18, 2020. ADRIAN DENNIS / AFP

Irish airline Ryanair announced on Wednesday that it plans to open a new French base in Beauvais, in the Oise, from December, despite the novel coronavirus pandemic and the drop in traffic.

«We are delighted to announce an investment of $ 200 million for Ryanair’s fourth French base at Paris-Beauvais airport. This development will create more than 2,300 direct and indirect jobs», Assures Jason McGuinness, commercial director of Ryanair. Ryanair already has bases in Marseille, Bordeaux and Toulouse.

Jason McGuinness adds that Paris-Beauvais airport continues to offer “competitive airport charges, which is a way to increase traffic and open new lines for Ryanair’s fourth French base“. The new base will allow Ryanair to connect the Paris region to 13 European countries.

Reduction of thefts

The company “low cost»Announced last week to further reduce its flights for October, the month during which it will run at 40% of its capacity because of the impact on demand of travel restrictions decided by governments to stem the pandemic.

Travel restrictions often criticized by the boss of the group Michael O’Leary, like the quarantine required in the United Kingdom on return from several countries, and which threaten to worsen as the epidemic spreads.

Faced with this context, Ryanair announced a restructuring plan which involves the elimination of 3,000 jobs. The Ryanair group, which also includes the companies Buzz, Lauda and Malta Air, claimed 149 million passengers a year before the pandemic and some 17,000 employees.

SEE ALSO – Airbus unveils three aircraft concepts to fly on hydrogen in 2035

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New wave of Covid-19 and bank data leak caused losses of up to 8% in world markets

In this context, the shares of the “old continent” registered their worst fall in three months on Monday. The Frankfurt Stock Exchange fell 4.4%; Milan and Paris fell 3.7%, while Madrid sank 3.4%, as did London. The pan-European STOXX 600 index fell 3.2%, a decline not seen since the beginning of June.

On concerns about new infections, the travel and leisure index collapsed 5.2%, accumulating its worst two-day decline since April, with airlines such as IAG – which owns British Airway – plummeting 12.1%. In addition, Lufthansa plunged 9.5% after further cutting its fleet and workforce due to the coronavirus crisis.

Parallel, European banks fell 5.7% to hover around record lows after a joint report by 108 media outlets warned of a possible link between entities such as HSBC and Deutsche Bank with astronomical amounts of “dirty money.”

These documents refer to some 2 trillion dollars (1.7 trillion euros) of transactions between 1999 and 2017 originating from drugs and criminal acts, and even from embezzled fortunes in developing countries.

For its part, on Wall Street, the Dow Jones Industrial Average fell 1.8% to 27,147.7 units; the S&P 500 lost 1.2% to 3,281.06 units and the Nasdaq Composite was down 0.1% to 10,778.80 units.

Given this climate, the CBOE volatility index of the market (VIX), a measure of investor anxiety, soared to its highest level in nearly two weeks.

The death of US Supreme Court Justice Ruth Bader Ginsburg also made it less likely that another stimulus package will pass through Congress before the November 3 presidential election, aid that remains “stalemate.” for three months.

This caused big falls in the health sector. Healthcare providers came under pressure from uncertainty about the fate of the Affordable Care Act (ACA), better known as Obamacare, with Universal Health Services shares falling sharply.

Dollar

Faced with uncertainty, the dollar rose after two weeks of declines. “What we are seeing with the dollar is a bet on a safe haven without risk,” said Erik Bregar, head of foreign exchange strategy at the Exchange Bank of Canada in Toronto, adding that the trigger was fear in European morning trading of a new confinement in the United Kingdom due to the coronavirus.

The dollar index, which compares the greenback with six prominent currencies, was up 0.85% to 93.297 units, while the euro lost 0.9% to $ 1.1734, the yen weakened 0.1 %, to 104.70 units per dollar, and the pound sterling lost 0.9%, to 1.2797 dollars.

Metals

Gold and other metals suffered sharp declines, affected by an appreciation of the dollar, in a week in which investors will be watching the speeches of the authorities of the Federal Reserve in search of clues on more stimulus measures to revive a economy hit by coronavirus.

Gold lost 2.1% to $ 1,909.05 an ounce, after hitting its lowest value since Aug. 12 earlier. Prices fell almost 10% from an all-time high reached at the beginning of last month, due to a drop in hopes for new stimuli.

“Gold should be trading higher with safe haven demand, but it’s kind of a repeat as in the spring when the market sell-off, participants have been selling assets across the board,” said Bob Haberkorn, strategist Market Senior at RJO Futures

More strongly, spot silver collapsed 8.3% to $ 24.53, its lowest level in more than a month.

Petroleum

Oil prices fell sharply due to the return of Libyan exports and fear of a new confinement due to the outbreaks of coronavirus, which would be disastrous for demand.

WTI’s barrel for October delivery lost 4.4% compared to the close on Friday and closed at $ 39.31. For its part, that of Brent from the North Sea for delivery in November fell 4% in London and ended the day at US $ 41.44.

The Libyan National Petroleum Company (NOC) announced on Saturday the resumption of crude oil production and exports in Libya at “safe” sites.

This news came the day after the Marshal who controls the east of the country, Khalifa Haftar, announced the lifting, under conditions, of the eight-month blockade imposed by his forces.

Grain

The futures of soybeans, wheat and corn collapsed this Monday in the Chicago Market, due to sales of investment funds in this context of risk aversion by the new wave of infections.

Despite sustained demand from China, soybeans suffered a loss of more than 2%, their biggest daily decline since April 1. It should be remembered that the strong demand from the Asian giant took the oilseed to its highest level in more than two years last week.

In the meantime, Wheat decreased 3.5% (US $ 7.44) and closed at US $ 203.84 per ton, in what was its largest daily percentage drop since August 2019.

Argentine assets

Amid this scenario, the S&P stock index Merval de Bolsas y Mercados Argentinos (BYMA) began on Monday with a drop of 4% but then attenuated falls to 1.8% due to the rise of the CCL dollar, which touched $ 140 and brought the exchange gap with the official dollar to 85 %, which reflects that the expectations of devaluation of the peso are still latent.

In the fixed income segment, the new bonds they closed with losses of up to 3.3%, as reflected by the decline in Bonar 2035. Sovereign bonds accumulated a loss of up to 13% last week.

In New York, the falls were more pronounced, something that was reflected in Argentine country risk, which rose 6.4% to 1,348 basis points, compared to the 1,083 basis points recorded on September 10 after reconfiguring with the new bonds.

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