Sunday, January 17, 2021

Pfizer vaccine rollback spoils Wall Street bullish mood

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Good evening, Bull Sheeters. This is Fortune financial journalist Rey Mashayekhi, filling this week for Bernhard with a special PM edition of the newsletter.

Positive data regarding jobless claims and economic activity in the United States pushed New York markets higher on Thursday – but reports Pfizer has problems distributing his COVID-19 vaccine, earnings deteriorated late in the afternoon. Brexit negotiations leads to an uneven day for European stock exchanges, as Chinese companies continue to struggle with new US audit regulations.

Market update

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  • the S&P 500 reached an all-time high in Thursday’s session and was on track for a second straight record close – until Pfizer vaccine news prompted an end of day slide. In the end, the S&P closed slightly (-0.1%), while the Dow gained 0.2% and the Nasdaq climbed 0.3%.
  • The bullish market mood was in part fueled by unemployment benefit claims this beat expectations, although the Thanksgiving holiday may have impacted the Department of Labor’s data model. Friday will bring the government’s more comprehensive unemployment report in November, which is expected to show slower job growth.
  • Stimulating discussions rumble in DC, with a compromise meant to be at hand after discussions between the President of the Chamber Nancy Pelosi and majority leader in the Senate Mitch mcconnell.
  • After much speculation, the president-elect Joe biden officially patted Brian Deese to direct his National Economic Council. Deese is a former Obama administration student whose most recent role at Black rock– where he served as the global head of sustainable investing for the asset management giant – has caught the attention of some on the left.
  • The Senate has confirmed Christopher waller to the Federal Reserveof Board of Governors, while President Trump’s appointment of Judy Shelton– a fierce critic of the Fed who believes in a return to the gold standard – to that same body seems almost dead.
  • Cinema operator AMC intended to sell over $ 700 million in inventory as it seeks to avoid bankruptcy following the devastating impact of the pandemic on its business.

Europe

  • the European scholarships had a mixed Thursday as all eyes remained on Brexit. London FTSE gained 0.4%, Frankfurt DAX fell by -0.5% and the CAC 40 in Paris slipped nearly -0.2%. The pan-European STOXX 600 was slightly up.
  • British and European negotiators continued their pizza marathon Brexit trade negotiations, with mixed signals on how these discussions play out, depending on which side you ask. With less than a month to go until the end of the UK’s ‘transition period’ out of the EU, there is still work to be done on everything from data sharing conditions at fishing rights.
  • European business activity suddenly contracted in November, as a surge in coronavirus cases across the continent forced countries to reinstate lockdown measures.
  • Poland indicated that he would be willing to abandon his veto compared to EU proposals Budget of 1.8 trillion euros.
  • The EU is planning to introduce new technological regulations which would have an impact on American giants like Google, Facebook, and Amazon.

Asia

  • the Asian markets were mostly flat during the day. While Tokyo Nikkei slightly increased, it is now trading at its highest levels since 1991. Hong Kong Hang Seng and South Korea KOSPI each climbed more than 0.7%. In mainland China, the main indices of Shanghai (-0.2%) and Shenzhen (+ 0.1%) drifted slightly.
  • The fallout from a new american law who will impose stricter audit rules for Chinese companies listed in the United States continued Thursday. This could encourage more companies to continue secondary registrations in Hong Kong and mainland China, while curbing a trend that has seen the market capitalization of Chinese companies listed in the United States exceed $ 2.2 trillion.
  • In other American-Chinese tensions, the Ministry of Defense has blacklisted four Chinese companies—Including the chip maker Minimum wage and oil company CNOOC– for their alleged links with the Chinese army.
  • And a day after the United States banned imports from a Chinese cotton producer for allegedly using Uyghur forced labor, China accused the United States to fabricate such claims.
  • Indiathe central bank hit the country’s largest private bank, HDFC, with punishments after a data center outage, its digital payment services were interrupted for more than 12 hours last month.

Somewhere else

  • Gold won over more stimulus.
  • the dollar continued its decline.
  • Bitcoin climbed the long, slow walk to $ 20,000.
  • Crude oil woke up on the positive OPEC + speak with Brent trading at less than $ 49 / bbl.

***

That’s all for today. Please check out today’s readings below, with a selection of stories from Fortunethe new December / January issue. Have a nice evening and see you tomorrow.

Rey mashayekhi
@ reym12
rey.mashayekhi@fortune.com

As always, you can write tobullsheet@fortune.comor reply to this email with suggestions and comments.



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