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WKLY ROUND-UP Thru Dec 11th 2020; Santa Bearing Gifts

Hey Folks, with the end of 2020 fast approaching I am sure many of you will be glad when it’s behind us. But we would see continued turmoil in 2021 and must be prepared for it. Get our take on the markets in this week’s Round-Up.


• Major US Indexes hit new highs on Wednesday but pulled back to end the week mixed with the small-cap Russell 2000 outpacing the large-cap S&P 500 Index for the fifth consecutive week recording small gain…We also saw IPOs for Airbnb and DoorDash, two of the largest in 2020 with shares of both rising sharply on their opening…2020 is on track to be the highest volume and busiest IPO year since at least 2014…Positive vaccine news appeared to boost investor sentiment early in the week but waiting on a possible US Fiscal Stimulus package from DC seemed to cause price action to move lower as a no deal scenario continues to increase…
• The impact of the latest wave of infections was perhaps most evident in weekly jobless claims, which jumped from 716,000 to 853,000, the highest level in nearly three months. Continuing claims also rose from 5.53 million to 5.76 million, breaking a streak of declines stretching back to early September. The rest of the week’s economic data offered mixed signals. Perhaps reflecting vaccine optimism, the University of Michigan’s preliminary gauge of consumer sentiment in December surprised observers by reversing most of November’s decline and marking its second-highest level since the onset of the pandemic.
• Treasury yields decreased through most of the week amid uncertainty over fiscal stimulus talks in the U.S. and Brexit trade negotiations. Solid industrywide inflows into municipal bond portfolios supported the sector’s performance, as did light dealer inventories and subdued levels of tax-exempt issuance. The worsening coronavirus situation and lack of progress in fiscal stimulus talks stoked uncertainty, according to our traders.
• Regarding BREXIT, talks between British Prime Minister Boris “Bull Dog” Johnson and EU failed to break the deadlock over a UK-EU trade deal. Both parties agreed to set a “final” deadline of Sunday for their negotiating teams to make a last attempt to reach agreement. A day later, Johnson said there was a “strong possibility” of no deal. Meanwhile, the European Union passed the EUR 1.8 trillion budget, which includes a EUR 750 billion coronavirus recovery fund, for 2021 to 2027
• China equities fell on renewed tensions with the U.S. after a second major index provider removed some Chinese companies from its benchmarks following a Trump administration executive order…Concerns that U.S. sanctions will target more Chinese companies outweighed generally positive data for money, credit, and merchandise trade.

Enjoy this Week’s Round-Up;

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