Strange week for sector correlations, with bombed out US Value names bid (S&P 500 Airlines index up 7%. Yes, really), US tech off around 5%, in one of the worst weeks for some time, whilst in broad index terms, Emerging markets leading the way, up around 3% overall. Top performing Euro sector for the week? Anyone? Nope, it was Retail, the Bloomberg Euro 500 Retail index up 5.7%. Second Wave? Confused? You should be.
UK Internal Market Bill, and how it breaches something called International Law (set by which Legal body)? In common with 99.9% of population, not a scooby really, but the Pound doesn’t seem too perturbed, up against the Dollar on the week, and flat against the (strong) Euro.
Will Facebook fall into line of at least impartial political coverage ahead of the election, or will a (conveniently timed) threat of an anti-trust lawsuit from the Federal Trade Commission (unrelated to political allegiances, naturally) adjust their thought processes ? Stock is down 10% on the month (but up 28% Year to date). Or maybe it’s all about the Kardashians after all.
There has been a brief cessation in its most inopportune appreciation (for the EU at least), but the Euro appears to be determined to hold around the 1.18 level versus the Dollar. Most economic indicators continue to point downward for the Euro area, and with a second wave of COVID infection presently sweeping the continent, surely can’t be long until we get a push through the 1.20 level.
Should we be concerned about Gold and Silver losing a little of their lustre? Ounce prices of $ 2000 for the former, and $ 28 for the latter, look to be key resistance levels. We’re hanging on in there, because, as much of the above comments confirm (and ironically, unlike precious metals), there’s still a lot of it about !