European epidemic serious and Brexit negotiations to draw concerns, British stocks dragged European stocks turned down, U.S. stock futures rose and then fell, AstraZeneca’s new crown vaccine was questioned by U.S. experts on efficacy data, its European shares once fell more than 1%. International oil prices fell for the first time in five days, the U.S. oil WTI once below $45. The U.S. dollar maintained a nearly three-month low, spot gold attempted to charge $1820 round figure, the pound against the dollar nearly three months high, bitcoin 24 hours plunged $3000. ECB dovish signals confirmed easing expectations, European government bond yields fell.
Overnight Headlines
The U.S. stock and bond markets were closed for the Thanksgiving holiday on November 26, and the markets opened normally at 22:30 GMT on Friday night, but the close was advanced to 2:00 GMT on Saturday morning.
A spokesman for British Prime Minister Johnson said that he hopes to resume face-to-face negotiations with the EU this weekend, and that both sides are working hard to narrow their differences, and that the UK is keen to continue negotiations and reach an agreement with the EU.
The minutes of the ECB’s October policy meeting showed that the Eurozone’s economic recovery is losing momentum, risks are significantly to the downside, a double-dip recession scenario in the Eurozone cannot be ruled out, and overall inflation is expected to remain in negative territory longer than forecast in September; the Committee can take action at any time if needed; agreed to take action at the December 10 meeting, pending the outcome of the December economic forecasts, which will assess data including the outbreak and the Euro exchange rate.
Germany became the 12th country in the world to have more than 1 million cumulative cases of new coronary pneumonia, while the United Kingdom had 17,555 new cases, with an average daily increase of 18,095 cases over the last seven days. German Chancellor Angela Merkel told parliament that the blockade will last at least until the end of December and possibly longer, and the United Kingdom announced new restrictions on movement this week, which will be implemented after the month-long blockade ends on December 2. Consumer confidence in Europe’s major economies, Germany and France, plummeted in November. Despite Biden’s call for Americans to travel less on Thanksgiving, more than 1.07 million people passed through U.S. airport security gates on Thanksgiving Eve, November 25, a one-day high since March of this year and about 40 percent lower than the same period in 2019, according to the U.S. Transportation Security Administration (TSA).
The seriousness of the European epidemic and the Brexit negotiations raised concerns, and British stocks dragged European stocks down, while U.S. stock futures rose before falling.
On Thursday, November 26, the pan-European Stoxx 600 index rose 0.2% in the early hours of the session before turning down, with the U.K.’s FTSE 100 and Italy’s FTSE MIB leading the declines in country-specific indices as U.S. stocks were closed and markets traded quietly.
Major Asian stocks were higher overnight, with the Nikkei 225 up 0.9%, the highest since 1991. U.S. stock futures in the European microcap once collective slight gains, the Nasdaq futures rose relatively largest, then the Dow futures first to turn down, European stocks after the close of U.S. stock futures fell together.
The FTSE Pan European Performance 300 Index closed down 0.12% at 1512.37 points. Europe’s STOXX 600 index closed down 0.12% at 391.63 points, but the index in November cumulative gains of more than 14%, is likely to create the largest monthly gains ever. The Eurozone STOXX 50 index closed down 0.03% at 3510.94 points.
Germany’s DAX 30 index closed down 0.02% at 13,286.57 points. France’s CAC 40 index closed down 0.08% at 5566.79 points. Britain’s FTSE 100 index closed 0.44% lower at 6362.93, while the FTSE 250 index closed 0.88% lower. Italy’s FTSE MIB index closed down 0.46% at 22201.44, while the FTSE Italian Aggregate Stock Bank Index closed down 1.28%.
The UK’s Lloyds Banking Group fell more than 2% and Barclays plunged 1.6%, with financial services stocks putting pressure on UK stocks. Yesterday, the Office for Budget Responsibility estimated that if the embargo continues, the U.K. economy could contract by 12.8% by 2020, the worst year in 300 years since 1709, according to the U.K. Office for Budget Responsibility. Investors are also concerned that the U.K. will leave the European Union without a deal at the end of the year, creating new barriers to trade.
Key Stocks.
AstraZeneca’s European shares fell 0.7 percent, and its U.S. shares fell nearly 5 percent from Monday to Wednesday, mainly because U.S. experts questioned the methodology and efficacy of a Phase 3 clinical trial of a new vaccine candidate jointly developed by AstraZeneca and Oxford University. An AstraZeneca spokesman on Thursday defended the trial results, saying it would continue to accumulate more data and conduct further analysis of the vaccine results. The AstraZeneca CEO later said the company may conduct a new round of global neo-crown vaccine trials, with new studies that would be more rapid and require fewer subjects.
Disney’s European shares rose 0.3% after the company announced that it would increase layoffs, laying off 32,000 employees in the first half of next year, mainly in the theme park, experience and consumer goods departments, including 28,000 layoffs announced in September. The streaming media division, which contributes to the company’s bright revenue, was not mentioned, and investors are optimistic that Disney will adjust its corporate structure and raise the priority of its streaming media business.
International oil prices fell for the first time in five days, with U.S. oil WTI falling below $45 at one point.
After four straight days of gains, international oil futures fell from an eight-month high on Thursday. Brent futures fell as deep as $1.03 or 2.1 percent to a daily low of $47.50 and below the $48 round-digit level during the session. U.S. oil WTI futures fell as deep as $0.98 or 2.1 percent to a daily low of $44.73, once below the $45 round-digit level.
On Wednesday, both oil prices hit new closing highs since early March at least this year, and rose nearly 9% in three trading days this week, mainly driven by the optimism brought by the new crown vaccine candidate. According to some analysts, the resurgence of epidemics in Europe and the United States led to a secondary blockade, the number of U.S. shale oil rigs rose, Libya increased production, etc. have increased concerns about oil oversupply, the market generally believes that OPEC + will be delayed from next year to increase production for three months.
Dollar stays at near three-month low, spot gold attempts to hit $1820 round figure
Dollar-denominated precious metals such as gold and silver were higher on Thursday as the U.S. dollar index remained at a near three-month low and the resurgence of the epidemic led to expectations of more fiscal and monetary stimulus measures in major economies.
Spot gold rose as much as 0.6% during the day to a daily high of $1,818 before falling back below the $1,810 round-digit level. Spot silver was up as much as 0.6 percent intraday to a daily high of $23.48 an ounce, before turning down in late European trading.
LME copper futures were up $102 at $7,402/mt, LME aluminum futures were up $6 at $1,976/mt, LME zinc futures were up $6 at $2,760/mt, LME lead was up $4 at $2,034/mt, LME nickel futures were up $214 at $16,272/mt, and LME tin futures were up $74 at $2,070/mt. , at $18,810/ton.
Brexit focus, GBPUSD near three-month high, Bitcoin plunges $3,000 in 24 hours
The dollar index turned down in the Asia-Pacific session, while European stocks turned up in the session, temporarily standing at the 92 level, but still close to three-month lows.
The euro fell slightly against the dollar and stood above 1.19, while the pound fell 0.4% against the dollar, but stood above 1.33 and close to a three-month high, having tried to hit the 1.34 mark in Asian trade, the highest since September 2. The dollar fell 0.2% against the yen, but settled above 104.
The Swedish krona fell 0.5% against the dollar, with the Swedish central bank saying its key interest rate is likely to remain at zero for the next few years and expanding and extending its asset purchases.
The onshore yuan closed at 6.5741 yuan against the dollar at 23:30 GMT, up 59 points from Wednesday’s overnight close. Volume was $40.885 billion, down $2.819 billion from Wednesday.
According to CoinDesk data, bitcoin plunged nearly $3,000, or more than 10%, in less than 24 hours after hitting a new all-time high on Wednesday. News that the U.S. Treasury plans to track cryptocurrency wallet owners and everyone involved in transactions will directly shake the fundamentals of cryptocurrency – anonymity. bitcoin surpassed the $15,000 to $19,000 mark one after another from Nov. 5 to 24.
ECB Dove Signals Confirm Easing Expectations, European Bond Yields Sink
The U.S. bond markets were closed on Thursday, with major European government bond yields falling slightly after dovish news from the European Central Bank. Analysts said it further confirmed expectations that the ECB would come up with further easing initiatives at its December meeting.
The 10-year German bund yield rose 3 basis points to -0.556% at one point, before giving back the gains and approaching the -0.59% line again. The 10-year Portuguese government bond yields in southern European countries, the main beneficiaries of the ECB’s bond-buying action, fell to an all-time low of 0.007% at one point, and almost to zero for the first time.
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