Dec,24 2020. ESH1 3686.75 +5.25 NQH1 12662.75 +11.50 8:00 AM EST
Global:
Contracts on the S&P 500 Index nudged higher and most Asian stocks gained. Alibaba Group Holding Ltd. sank more than 8% in Hong Kong after China kicked off an investigation into alleged monopolistic practices at the tech giant. Volumes were subdued in many countries on Thursday. All derivatives trading is shut on Eurex and most equity markets will be closed Friday for Christmas Day.
Congressional Republicans face high-stakes decisions in coming days over two giant pieces of bipartisan legislation. House Majority Leader Steny Hoyer plans to introduce his call for $2,000 checks today, but GOP members intend to block it. If it fails, Democrats will vote Dec. 28 on new legislation to codify the payments and possibly on another stopgap spending measure. It’s still unclear what Trump plans to do with the stimulus bill Congress passed Monday.
Asia:
China stocks inched lower on Thursday, dragged by tech shares after Beijing launched an anti-trust probe into Jack Ma’s Alibaba Group.
China’s blue-chip index CSI300 fell 0.1% to 5,000.02, while the Shanghai Composite Index lost 0.6% to 3,363.11. The tech heavy STAR Market dropped 2.1%, while the CSI TMT Index fell 1.5%. Investor confidence in the tech sector was hit by news that China launched an antitrust investigation into Alibaba’s e-commerce and fintech empire. The probe is part of an accelerating crackdown on monopolistic behavior
in China’s booming internet space, and the latest setback for Alibaba founder Jack Ma.
Europe:
European stocks climbed and the pound advanced as investors awaited the unveiling of a post-Brexit trade accord after both sides earlier agreed on an outline of the deal.
The Stoxx 600 Index edged higher ahead of an expected press conference from Prime Minister Boris Johnson on Thursday to announce the long-awaited agreement. Negotiators worked through the night putting the finishing touches on the historic pact, which will formally complete Britain’s separation from the European Union. The pound rose to the highest in a week, while the euro was steady.
Currencies:
The euro rose to $1.22 and the dollar fell on Wednesday as foreign exchange traders looked beyond U.S. President Donald Trump’s threat to block a $892 billion COVID-19 aid package. The euro rose to $1.22 and the dollar fell on Wednesday as foreign exchange traders looked beyond U.S. Presidents possible veto of the US aid bill.
Gold/Silver
Gold nudged higher as the dollar weakened while investors await the final announcement of a historic post-Brexit trade deal.
The U.K. and the European Union are on the verge of unveiling an agreement, with an announcement expected Thursday in Europe after negotiators worked through the night to put the finishing touches to a compromise on fishing rights. The accord will formally complete Britain’s separation from the bloc more than four years after the 2016 referendum.
“Gold prices are benefiting from a Brexit trade deal breakthrough that paved the way for a weaker dollar,” said Oanda Corp. senior market analyst Edward Moya. The metal could see further gains if the U.S. stimulus impasse is resolved, he said.
OIL/Nat Gas
Brent futures were flat near $51 a barrel on Thursday but are down almost 2% this week. Tougher restrictions were extended to much of England in an effort to contain a new strain of Covid-19 and rein in rapidly rising infection rates. Early analysis from scientists and governments around the world suggests the variant may be as much as 70% more transmissible.
Treasuries
Treasuries bear-steepened Wednesday, following wider long-end led losses across gilts, after news that an outline on a Brexit trade dealhad been reached. Beyond Brexit, Treasuries lacked a significant price catalyst on a session which included soft data on personal income and spending and lower-than-expected University of Michigan sentiment. The 10-year yields looked to test 1% level as U.S. stocks extended onto weekly highs.
- Treasury yields ended cheaper by 1bp to 5.5bp across the curve, steepening both 2s10s and 5s30s by almost 4bp; 10-year yields ended around 0.96%, after reaching as high as 0.971% during peak selloff
Economic Numbers/ Fed Speakers
Bloomberg Consumer Comfort 09:45 EST Prior
Advancers
- OCGN +165.8% (+$1.33); Ocugen Gains Premarket, Adding to Gains on Vaccine Pact
- LIZI +26% (+$0.94)
- UAVS +22.2% (+$1.51)
- SUPN +22.1% (+$4.98); Supernus Soars as Study for ADHD Met Primary Endpoint
- CLNE +17.4% (+$1.43)
- SCPS +16% (+$2.10)
- MGNI +15.5% (+$4.22); Magnite Climbs as It Replaces Apple on Needham’s Conviction List
Decliners
- BRPA -11.4% (-$4.37)
- MVIS -11.3% (-$1.05)
- FUBO -10.9% (-$6.75); FuboTV Cut at BMO on Valuation; Stock Doubled in Last Five Days
- NKLA -10.8% (-$1.82); Nikola & Republic Services End Pact on Refuse Truck Development
- SOL -8.4% (-$1.01); Renesola Power Sells 15.4 MW of Solar Assets in Romania
- QS -6.8% (-$8.93)
- OTGLY -6.7% (-$1.30)
- IMAB -6% (-$2.51)
- CVAC -5.1% (-$5.59)
- BLNK -4.9% (-$2.39)
- YGMZ -4.4% (-$0.45)
- AI -4.2% (-$7.47)
- JG -3.5% (-$0.17); Aurora Mobile Rises 50%: Chinese U.S. Listings
- MRNA -3.5% (-$4.42)
- ABUS -3.5% (-$0.14)
- ABCL -3.4% (- $1.60)
- BNTX -3.3% (-$3.31); BioNTech Eyes Production; Illumina Upgraded: N.A. Health Wrap
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Domestic Equities
U.S. futures climbed with European stocks and the pound jumped as investors awaited the unveiling of a post-Brexit trade accord after both sides earlier agreed on an outline of the deal. Contracts on the S&P 500 Index nudged higher and most Asian stocks gained. Alibaba Group Holding Ltd. sank more than 8% in Hong Kong after China kicked off an investigation into alleged monopolistic practices at the tech giant. Volumes were subdued in many countries on Thursday. All derivatives trading is shut on Eurex and most equity markets will be closed Friday for Christmas Day.
