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Finance Update – and they’re OFF!


Commodities – IMF approves cryptos

All major cryptos up this morning, after the G20 the International Money Fund and the Bank of International Settlements reported they would provide a comprehensive regulatory framework for regulating and issuing sovereign stablecoins by 2022 – this after both the ECB and BoJ said they would issue digital currencies themselves. Concurrently, PricewaterhouseCoopers estimate that blockchain technology could boost the global economy by $1.7 tn over the next decade.

Meanwhile, oil yesterday plunged below the $40 support level to land at $39.03 before stabilising at the $39.40 level after post-Hurricane Delta production cuts were restored in the US, Libya’s largest oilfield returned online, and a Norwegian strike ended.

And gold similarly dropped $22 per ounce, slicing the 1920 level. It is currently trending at around 1916.

Corporate – J&J, Citi & Delta launch earnings

Ahead of its earnings report today, Johnson & Johnson shares added 0.58% yesterday, adding nearly a dollar after hours despite its temporary halt on Covid vaccine trials due to an unexplained illness in one of its study participants.

Also releasing the first of this season’s earnings reports are Citigroup, JP Morgan, Delta Airlines, Blackrock and Fastenal. Philip Morris is paying dividends.

Disney (-0.0080%) shares soared 6% after hours following a restructuring announcement aimed at fast-tracking its Disney+ streaming service in the wake of Covid-related release disaster.

Apple added 6.35% yesterday as reports on its soon-to-be-released iPhone12 were leaked. Google is up 3.58% as the US Dept. of Justice prepares to launch its anti-trust lawsuit against the company. And Facebook added 4.27% as it announced it would begin removing Holocaust denial content.

Asia – China to enable Americans to buy bonds

China overnight announced it was aiming to raise $6 bn in an international bonds issue – the first in which US investors will be allowed to participate, according to Reuters. Meanwhile, China-Australia relations were further dampened after China Investment Corp’s purchase of additional real estate is meeting with a strict review process in Canberra.

Asian markets are mixed this morning, Australia’s ASX up 1.04% and China’s A50 up 3.14%. The KOSPI is down 0.12% and the Shanghai Composite -0.22% after China disappointed with a $21bn drop in its trade surplus on a huge 11.5% YoY increase in September imports.

Credit Card Retail Sales in New Zealand surprised to the upside with a 7.3% increase YoY. And BoJ gov. Kuroda said his bank was preparing to take additional monetary easing measures.

Europe – Bailey: no negative rates

European indices were led higher yesterday by Portugal’s PSI’s 1.56% increase. Only the FTSE was down 0.25% and the BEL20 (-0.06%).

The pound is down 0.13% this morning after National Statistics reported a worse than expected increase in August’s unemployment rate to 4.5%. Central banker Bailey yesterday reiterated that he was not considering negative rates but is open to commercial bank input. BRC retail sales in the UK yesterday missed expectations with a 6.1% YoY increase.

And the Euro performed almost identically as Germany’s September consumer inflation remains steady at -0.2% YoY.

Americas – Indices prepare for earnings

With futures down about a 1/3 of a per cent across the board, US indices yesterday managed to add between 2.56% (Nasdaq) and 0.68% (Russell 2000).


09:00 AM GMT EU & Germany ZEW economic sentiment
10:00 AM GMT US Business Sentiment. CPIs at 12:30 and Budget Statement at 6 PM.
11:30 PM GMT Australia Westpac Consumer Confidence. New Home Sales at midnight.
04:30 AM GMT (+1) Japan Industrial Production.


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