Due to the Western Christmas holiday, there are only three full trading days this week, but by reviewing the market we can find that the market wave is not small ……
[Hot Quotes
The following we may want to comb the market by species.
Gold before the holiday flash crash market reappeared, the beginning of the week once fell more than 50 dollars
Last weekend, London closed the city, stimulus negotiations are now the dawn of two good fermentation, Monday gold once climbed to $ 1906, however, the same day in the evening huge amount of selling raids, in the pre-holiday liquidity reduction environment is to amplify the decline, gold prices touched a minimum of $ 1854 near.
The spot silver market was even more exciting that day, with an intra-day surge of 6%, but once turned down 2% during the day.
In the following days, gold and silver traded in a narrower range, and as of Thursday’s close, spot gold closed below the $1,880 mark, down a modest 0.1% on a weekly basis; spot silver was nearly unchanged from the previous week’s close at around $25.70.
Some analysts are more optimistic about the outlook for silver and believe that this is a good time to buy silver at the end of the year based on seasonal patterns and technical analysis.
Market sentiment changes set off a sell-off in the oil market, with both oils weakening
In the oil market, the news of London’s closure over the weekend stirred market concerns about the outlook for crude oil demand, with international oil prices plunging 5% at the beginning of the week, followed by commodity currencies and commodities such as the Australian and New Zealand dollars.
On Wednesday, boosted by the positive API and EIA inventory reports, the two oils regained momentum and recovered all the losses, but the gains were clearly lacking in momentum, and the two oils ended up only slightly higher on a weekly basis.
Exchange market shock, the pound staged a 500-point oscillation during the week
The most exciting market this week when the British pound, subject to the deadlock in trade negotiations and the emergence of viral variants under the double blow of the London closure, the pound once fell below the 1.32 mark on Monday, collapsing 2%. Then three trading days, around the Brexit news, the pound to maintain a high volatility state, the agreement was finally reached on Thursday, pushing the pound higher, up above the 1.36 mark, the final weekly closing up 0.36%.
The dollar’s trend this week to some extent by the impact of the pound, the beginning of the week benefited from safe-haven buying, once above the 91 mark, but the following days retracted some of the gains, maintaining a narrow range of trading, the final weekly close of a small positive line.
Bitcoin bulls ignore new regulatory rules as Ripple flash crash
Cryptocurrencies were equally wild. Following the disclosure of new rules to monitor crypto wallets over the weekend, on Wednesday morning, the SEC planned legal action against Ripple for selling Ripple (XRP), which fell over 40% at one point that day, and Bitcoin was also implicated for a time, but still hovered high overall. On Friday, Bitcoin hit a new record high at $24,500 per coin.
[Weekly Events].
After looking at the above quotes, it is easy to see that the major market quotes this week revolve around these basic themes: the pre-Christmas long holiday quotes, the London city closure and the emergence of mutant viruses in the UK, the progress of the Brexit trade talks, and the progress of the stimulus talks.
Christmas holiday opens, pre-holiday liquidity reduced
Whether it’s the flash crash in gold prices or the plunge in oil prices this week, many analysts attribute it to pre-holiday market liquidity issues that amplify volatility, in addition to the intensive transfer of positions before many long holidays or at the end of the year that can also exacerbate volatility.
The process is bumpy, but Brexit finally ushered in a big result
The four-year drama of Brexit finally came to a grand finale last night, with the UK’s concessions on fisheries at the beginning of the week first ushering in a turnaround in the situation, followed by news on Wednesday that the UK and EU had finalized a framework for an agreement. On Christmas Eve, the British government confirmed that the Brexit deal was complete. Johnson said.
“We have completed our biggest trade deal to date and the agreement is a comprehensive Canadian-style deal.”
Even though the deal is finalized, the process of leaving the EU is far from over. The European Parliament will provisionally accept the agreement on Jan. 1 next year, but will continue to deliberate. In the U.K., the British Parliament will vote (on the trade deal) on Dec. 30.
New coronavirus has mutated and the outbreak remains a concern
At the end of last week, the British side said that a new variant of the New Coronavirus was found in the UK, which is 70% more contagious than the normal New Coronavirus, and London immediately declared a city closure from this week.
On Wednesday, the situation continued to worsen, with health Secretary Matthew Hancock saying that the level of prevention and control of the new crown outbreak in more areas of eastern and southeastern England will be raised to the highest level 4. In addition, another variant of New Coronavirus has been found in the UK.
Many people are concerned that the vaccine may not be effective against the mutated virus, although a number of companies, including Pfizer, said no impact has been found for the time being. Pfizer and BioNTech SE are reported to have received EU approval for their new coronavirus vaccine, paving the way for vaccination to start by the end of the year in the region.
U.S. Stimulus Bill Passes Congress, Trump Refuses to Sign
This week, a bipartisan U.S. Congress finally passed a $900 billion economic bailout spending bill, however it was kicked back when it was submitted to the president for signature.
President Trump said the bill contained aid that was far from what was expected, and demanded that the bailout proposal be raised to $2,000 per person, so he vetoed it and sent it back to Congress for reconsideration. However, the proposal was not passed by the U.S. House of Representatives.
To date, the fate of the stimulus bill is still up in the air. The Georgia Senate runoff, scheduled for January 5, is now considered critical and will determine the fate of the Senate’s speakership.
SEC Approves Direct Listing of Companies on NYSE
On Tuesday, the U.S. Securities and Exchange Commission (SEC) announced its approval of the NYSE’s plan to allow companies to list directly on the exchange.
That means hot tech companies and other startups will soon be allowed to get financing directly on the NYSE without paying big underwriting fees to Wall Street investment banks, a move that could upend the way IPOs have worked in the U.S. for decades.
There is another development about the SEC that is worth watching. SEC Chairman Clayton reportedly left his post on the 23rd local time, ending his term about six months early.
According to SEC rules, once the agency’s chairman leaves office, one of the commissioners will be appointed as acting chairman until a new president appoints an official replacement and gets Senate approval. Foreign media expect the incoming Democratic administration to take a tougher approach to enforcement.
Russia backs OPEC+ production increase
Officials, who did not wish to be named, said that as of now, Russia supports another 500,000 bpd increase in production next February compared to January, which is comparable to the size of the January increase. This Russian position suggests that the country believes the market can accept a further OPEC+ supply increase.
To avoid chaos in March, the U.S. Treasury Department is interested in financial reform
The President’s Working Group on Financial Markets under the U.S. Treasury Department released a report on Tuesday saying that the wave of risk aversion triggered by this spring’s epidemic showed the need for reforms in the U.S. money markets to make money market funds less vulnerable to the impact of investors scrambling to withdraw their capital.
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