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January 25, 2021

Earnings week and FED meeting! CAC40: -1.04%

Big week for stay-at-home stocks

Big week for stay-at-home stocks

In the United States, we are in the midst of earnings season, and the NASDAQ 100 is already celebrating the perceived strength of the so-called “stay-at-home” winners of the economy including Microsoft, Facebook, and Apple. The upbeat results of Netflix last week certainly have helped buoy these stocks, as they have gained between 1.7% and 4.3% early in trading. That being said, though, the market was very lumpy during the trading session, and it was just a handful of stocks that really outperformed.

Technology stocks have led the way for quite some time, so it is not a huge surprise that as people worry about further lockdowns, some of the stocks would continue to attract interest. Many of these companies will be reporting in the next two or three days, and that is why these stay-at-home stocks have come back “in play.”

Moderna believes vaccine will work against new variants

Moderna believes vaccine will work against new variants

Moderna on Monday claimed that it believes its Covid-19 vaccine protects against new variants found in the United Kingdom and South Africa, although it will test the new booster shot aimed at the South African variant after concluding that the antibody response could be diminished against that particular strain. The company also stated that there was no reduction in the antibody response for the UK strain.

The company believes that a slightly modified to dose regimen would provide protection against the South African strain, and as a result Moderna shares rose nearly 10% in early morning trading as the variations of Covid-19 are on the forefront of economic concern.

Boeing 737 MAX set to fly in European Union again

Boeing 737 MAX set to fly in European Union again

Europe is set to lift the 22-month ban on the Boeing 737 MAX later this week after reviewing information submitted by industry experts and whistleblowers. The European Union Aviation Safety Agency approving these flights is a huge step forward in resolving the safety crisis, after a couple of high-profile crashes in Indonesia and Ethiopia were linked to faulty software.

The United States lifted its own ban in November, as did Brazil and Canada. However, China has yet to lift its ban, nor has it suggested when it would do so. This remains a major thorn in the side of Boeing, as the Chinese market is considered to be one of the crown jewels globally. That being said, it does look like the market is starting to price in an eventual return to normalcy for Boeing.

German Business Climate worse than expected

German Business Climate worse than expected

Early on Monday, the German Ifo Business Climate Index came in at 90.1, lower than the expected 91.5 for the month. The indicator is considered to be a “leading indicator” of small business in the economic powerhouse and has ramifications on the idea of further growth in the EU overall. With continued lockdowns, it should not be a surprise that owner’s moods are souring.

Global Equity Markets

Global Equity Markets

Equities traders were all over the place on Monday, as traders continue to worry about the coronavirus figures in places like the United Kingdom and the European Union, and of course the numbers coming out the United States. As a result, the FTSE, DAX, and CAC were all negative during the trading session, although the S&P 500 has been going back and forth midday between gains and losses. It should be noted that the upcoming week features a slew of earnings reports in the United States, thereby keeping the market somewhat quiet.

Index Change
FTSE100

FTSE100

-0.59

DAX

DAX

-1.03

CAC40

CAC40

-1.04

Nikkei 225

Nikkei 225

0.67

S&P 500

S&P 500

0.16

Currencies

Currencies

The US dollar has rallied overall during the trading session on Monday as traders are starting to pile into the 10-year note in America. The Euro lost 4/10 of a per cent, the British pound was down 1/10 of a per cent, while the Japanese yen and Australian dollar barely budged. Nonetheless, it should be noted that we are still in a negative dollar trend, but clearly, there seem to be cracks in the ice underneath.

Index Change
EUR/USD

EUR/USD

-0.3952

GBP/USD

GBP/USD

-0.1014

USD/JPY

USD/JPY

0.0366

AUD/USD

AUD/USD

-0.0004

Commodities

Commodities

Commodity markets were decidedly negative during the trading session, but only slightly so. Gold was down 1/10 of a per cent, silver was down 28 basis points, and platinum was down roughly 1/3 of a per cent. Copper lost 14 basis points but is still at very extreme highs and in a strong uptrend. Brent market traders were positive though, as crude jumped ½% in an environment that was a bit counterintuitive.

Index Change
Gold

Gold

-0.11

Silver

Silver

-0.28

Brent

Brent

0.51

Platinum

Platinum

-0.35

Copper

Copper

-0.14

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