Friday November 13, 2020 Trading Desk: (312) 236-8907
TODAY’S GAME PLAN:from the trading desk, this is not research
DATA/HEADLINES: 8:30ET Producer Price Index, Fed’s Bullard speaks; 10:00ET Consumer Sentiment
- Gallup Poll: Fewer Than Half Likely to Comply With COVID-19 Lockdown
- South Korea tests a drone taxi over Seoul link
- Chinese analysts warn the profound changes within US will increase the uncertainty for Biden GT
- Georgia begins hand recount
- News organizations call Arizona for Biden
December E-mini S&P futures %, Nasdaq %, Russell 2000 futures %, Dow futures %. SPX has key short term at 3488.50 area.
Treasury yields are back within a basis point of Thursday’s closing levels after erasing Asia-session declines as U.S. stock futures climbed. Bunds, gilts outperform with U.K. stocks lower. U.S. yields remain higher on the week after Monday’s surge sparked by positive vaccine trial results.
- 10-year yields hover around 0.885%, near middle of 0.80%-0.97% weekly range and ~6bp higher on the week; curve spreads little changed
METALS: Gold held steady in a narrow range on Friday, with optimism over a COVID-19 vaccine countered by market concerns about its rollout as global infections continue to mount. Spot gold were little changed at $1,877.30 per ounce by 1132 GMT but was down 3.7% for the week, heading for its worst weekly loss since September after the initial vaccine euphoria dented safe-haven investor demand. U.S. gold futures were up 0.2% at $1,877.60.
ENERGY: Oil fell for a second day — dropping below $41 a barrel in New York — as the ongoing spread of coronavirus dampens the demand outlook.
As well as the ongoing surge in European coronavirus cases, there are also growing numbers in the U.S., Japan and South Korea, all of which are major oil consumers. This prompted both the International Energy Agency and the Organization of Petroleum Exporting Countries to revise down their demand estimates in their monthly reports as renewed lockdowns hit fuel use.
CURRENCIES: The dollar slipped on Friday and risk appetite in currency markets eased, as worries about the economic fallout from surging COVID-19 cases in Europe and the United States tempered initial enthusiasm about a possible vaccine.
Cabrera Capital Markets, LLC