Market Talk – Monday, Dec. 14

The French economy will rebound next year as coronavirus restrictions are lifted although not as fast as previously expected, the central bank forecast on Monday. After contracting about 9% this year, the euro zone’s second-biggest economy will post growth around 5% in 2021 and 2022 before easing to slightly more than 2% in 2023, the Bank of France forecast in its quarterly outlook. The rebound has been knocked back after a second lockdown had to be imposed at the end of October following a new outbreak of infections which is gradually coming under control. Prior to the second wave, the bank had forecast in September a contraction of 8.7% this year and growth of 7.4% in 2021 and 3% in 2022.

The major European stock markets had a mixed day today:

  • CAC 40 increased 20.29 points or 0.37% to 5,527.84
  • FTSE 100 decreased 14.92 points, or -0.23% to 6,531.83
  • DAX 30 increased 108.86 points or 0.83% to 13,223.16

The major European currency markets had a mixed day today:

  • EURUSD increased 0.00352 or 0.29% to 1.21472
  • GBPUSD increased 0.01021 or 0.77% to 1.33211
  • USDCHF decreased 0.00267 or -0.30% to 0.88686
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Some economic news from Europe today:

Germany:

German WPI (MoM) (Nov) increased from -0.2% to 0.1%

German WPI (YoY) (Nov) increased from -1.9% to -1.7%

Euro Zone:

Industrial Production (YoY) (Oct) increased from -6.3% to -3.8%

Industrial Production (MoM) (Oct) increased from 0.1% to 2,1%

US/AMERICAS:

Pfizer PFE is in negotiations with the US government to supplement the nation with an additional 100 million vaccinations in 2021. President Trump had already purchased 100 million doses under his program “Operation Warp Speed.” Pfizer CEO Albert Bourla announced this Monday that he foresees the second shipment becoming available in Q2. Vaccines were shipped to all 50 states over the weekend, and nursing homes, with nursing homes and health care workers receiving the first vaccinations. The US government has said that it will provide the vaccinations to Americans free of cost.

Peloton PTON is poised to join the Nasdaq 100 index after the company rallied over 300% year to date with a market value nearing $35 billion. The Nasdaq exchange reconstructs its listings each December and will restructure on December 21, 2020. In addition to Peloton, Match Group, Okta, Atlassian, American Electric Power, and Marvell Technology Group are set to join the index. The six companies likely to be removed from the index are Ulta, Expedia, Take-Two Interactive Software, BioMarin Pharmaceuticals, Citrix Systems, and Liberty Group.

New York City mayor Bill de Blasio stated this Monday that he may need to fully shut down the “city that never sleeps” once again. “We’re seeing the kind of level of infection with the coronavirus we haven’t seen since May and we have got to stop that momentum, or else our hospital system will be threatened,” de Blasio said. A ban on indoor dining went into effect today. Governor Cuomo would need to approve of a full shutdown, but for now, the mayor is calling the new vaccination “a shot of hope.”

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Disclosure: None.

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