Finance Update – Trump Kills Relief Bill

Asia – Yuan volatile

Chinese indices are mainly neutral this morning, the Hang Seng up 0.79% and the Nikkei down 0.18% following Japan’s leading economic index, which added 2 points, rather than the expected 3.

Australia’s ASX is up 1.25% despite yesterday’s dismal Trade BalanceThe difference in value between a country’s imports and exports. If a country exports more than it... report and a 6-point drop in the AiG’s Services Index; and the NZ dollar is down a 1/10th per cent after the Global Dairy Trade price index fell to 2.2%.

The Yuan saw some irregular volatilityThe measure of fluctuation in an asset’s value from the mean. Volatility can be historical (over a... overnight.

Europe – Brexit talks solve social security

European indices were mainly up to the tune of about a half per cent yesterday, Austria’s ATX gaining 1.59% but Holland’s AEX losing 0.46%.

The Euro bounced off supportThe price level that traders believe represents the lowest value an asset can reach. At this point, ... this morning at 1.1744 after Germany reported a 0.2% decline MoM in Industrial Production and France’s trade deficitA trade balance that is negative as a result of cost (imports, on the national level) being greater ... expanded to €-7.71 bn in August.

Markit yesterday published a 2-point improvement in Britain’s Construction PMI (56.8). The pound added some traction as Brexit talks took on a rosy colour when social securityA documented and tradeable asset -mainly stocks and bonds, but also documented derivatives. rights talks shot forward. Fisheries, competition and dispute resolution still remain in a quagmire. Meanwhile, the nation’s National Audit Office also warned that £26bn could be lost from the government’s COVID loan scheme to fraud.

Americas – Powell – budget unsustainable

US markers closed down yesterday led by the Nasdaq’s 1.57% drop after Pres. Trump halted talks on the Congressional relief package, while FED head Jerome Powell told the NABE that the US federal budget is on an “unsustainable path”.

The USD flattened its rise at 93.91 after August’s Trade Deficit increased to $67.1 bn, the Redbook index fell a tickAn asset’s minimal unit of measurement and price change. to 2.1%, and Jolts Job Openings dropped 200K to 6.49mn in August.

The Loonie lost 0.16% overnight after Canada released a worse-than-expected improvement in its Merchandise Trade SurplusA trade balance that is positive as a result of income (exports on the national level) being greater....

Commodities – China expanding Digi-Yuan pilot

WTI is up to 39.93 after peaking yesterday at 40.84 following a 0.95mB increase in crude inventories and Trump’s COVID relief bill obliteration. WTI lost 1.57% and Brent 1.31% during the Asian session after Refinitiv revealed China’s imports for September were down to 11.71mbpd from June’s 12.9 – launching fear of the beginning of a downtrendA chart pattern showing diminishing value and confirmed by sequentially falling highs and lows..

And gold plunged by over $40 an ounce yesterday on closed Chinese markets due to the nation’s celebration of the establishment of the PRC.

All major cryptos are down this morning after the UK’s FCA banned sales of crypto derivatives to retail investors and Ripple Chairman Chris Larsen said his company would leave the US unless the SECThe US Securities & Exchange Commission is the US regulator of financial markets. improve its policies. Meanwhile, China’s deputy central banker Fan Yifei told Sibos 2020 conference attendees that the nation’s digital Yuan pilot had seen 11,300 consumer wallets processing about $162mn-worth of transactions. The pilot is being expanded to include Beijing, the Yangtze River Delta region, the provinces of Tianjin, Hebei and Guangdong, Hong Kong and Macau, with central and western China joining in the near future.

Corporate – FB closes down QAnon

With congressional talks steaming ahead, Twitter (-3.61%) and Facebook (-2.26%) have begun removing COVID misinformation penned by the US president. House Democrats yesterday said that Amazon, Apple, Google and Facebook enjoy “monopolistic powers” and antitrust laws should be changed to promote diversity.

Meanwhile, Facebook has begun closing down QAnon groups and pages, classifying them as a dangerous militarized movement that promotes violence. The group has been praised by Trump and other Republicans.

Barclay’s (+3.27%) private European banking head, Gerald Mathieu yesterday told Reuters the company was planning to launch services in France, Italy, Spain and Germany next year, adding to current operations in Monaco, Switzerland and Ireland.

Walmart (-0.83%) overnight announced it would begin selling Medicare insurance in 50 states. It already offers low-cost dental care and counselling. And Apple announced a release date for its 5G iPhone12 – October 13.

Earnings season budding, Levi Strauss yesterday reported better-than-expected revenues – dropping 27% YoY with PS at 7 cents. Ecommerce revenues soared by 52%. Today, look out for Tesco as Ericsson, Merck and Seagate pay dividends.

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