Christmas cancelled in London

GURU WISDOM

"If there is one common theme to the vast range of the world’s financial crises, it is that excessive debt accumulation, whether by the government, banks, corporations, or consumers, often poses greater systemic risks than it seems during a boom." — Carmen Reinhart
 

MARKETS

*Daily closing price
↘ EUR/USD    1.2255        (-0.09%)
↘ GBP/USD    1.3518        (-0.65%)
↗ USD/JPY    103.31        (+0.20%)
↗ S&P 500    3709.41    (-0.35%)
↘ Hang Seng    26,498.60    (-0.67%)
↘ Gold        1814.81    (-0.28%)
↗ Oil (Brent)    52.32        (+1.59%)
↗ Bitcoin     23,804        (+2.93%)
 

NEWS

 

London lockdown

In a last minute change of tact before Christmas, the UK government created a new tier 4 system that involves stay-home orders for London and most of South East England. The decision came following advice from scientists that a new coronavirus strain is spreading faster, causing a spike in cases. The bad news could weigh on any positive effects on the pound if a Brexit deal is achieved this week. Were there to be no Brexit deal, it could add to the losses in GBP.
 

Tesla S&P today

Tesla will be added to the S&P 500 before the US market opens on Monday. The stock moved up on Friday, the final day of trading, with four times the usual volumes as passive funds (ETFs) bought the stock before its inclusion in the index. Traders have been bidding up the stock before this moment ever since it looked like the EV car-maker would meet the qualifications to be included. There could be a ‘sell the news’ drop in the stock but short-sellers have been capitulating given the sharp rise in the stock.
 

DAY AHEAD 

*Times in GMT
01:30    CNY    PBoC Interest Rate Decision             3.85 %    3.85 %    
01:30    AUD    Mid-Year Economic and Fiscal Outlook         Report
13:30    USD    Chicago Fed National Activity Index (Nov)         0.83
15:00    EUR    Consumer Confidence(Dec) PREL          -17.6    -17.6