Overview of TOP weekly news
The NYSE cancels plan to delist Chinese stocks
The New York Stock Exchange on Tuesday cancelled a planned delisting of three Chinese state-owned telecommunications companies, reversing a decision enacted by Donald Trump, which referred to their connection to the Chinese military. The companies involved in the delisting were China Mobile, China Telecom and China Unicom.
However, on Monday evening, the NYSE stated that it no longer intended to remove it from the register “following further consultation with the relevant regulatory authorities.” The delisting was originally approved on December 31 and was scheduled to begin on January 7.
Stock traders said the NYSE’s turnover was in line with growing market expectations that newly elected President Joe Biden’s report would take a less militant approach to Chinese groups entering US capital markets.
Hedge funds bet against gold
Hedge funds are betting against major gold miners, according to a Reuters survey, because the COVID-19 vaccine is having a negative impact on the prospect of rising gold prices.
The Royal Bank cuts its 2021 gold forecast to $1,810 an ounce from $1,893. “Even though in our view, we are by no means out of the worst, the light at the end of the tunnel means that gold markets should begin to develop trends that have been quite exaggerated during 2020,” said analyst of the Royal Bank last month.
On the other hand, there are stricter restrictions on movement to combat the new variant of the virus and huge government debt, which can nevertheless help gold grow.
Britain will provide another fiscal package
Britain has approved another £4.6 billion support package to alleviate the expected recession caused by an increase in COVID-19 cases, which led to a third wave of national lockdowns.
On Monday, Prime Minister Boris Johnson warned that the highly contagious variant of the coronavirus risks overloading the health service within 21 days. The result is the work of people from home, the closure of schools and the closure of restaurants and shops that are not essential.
Analysts estimate that the economy will fall back into recession, due to a record 25% drop in production in the first two months of the blockade in 2020. The Organization for Economic Co-operation and Development predicts Britain’s recovery will be the slowest of all member states except Argentina by the end of this year. The economists of J.P. Morgan also predict a significant decline in production of 2.5% for the first quarter of 2021.
Chinese stock index at its highs
The Chinese equity benchmark closed today above its previous high of 2015. In 2020, the CSI 300 surpassed the global MSCI index by its highest value in six years. Investors were pouring cash into thousands of new equity funds at a time when some popular products were suffering their first-ever losses.
Performance of index CSI 300 (Source of the graph: Tradingview)
Qualcomm has appointed a new CEO
Qualcomm has appointed its president, Cristiano Amon, as CEO to replace Steven Mollenkopf. The new CEO has overseen the company’s chips division, which supplies processors to most Android phones and modems that help Apple’s Android and iPhone devices connect to wireless data networks.
Performance of Qualcomm’s shares (Source of the graph: Tradingview)
Watch this week:
Thursday, January 8, 2021
European Union development of CPI inflation in December. A slight decline in deflation of 0.2% on a year-on-year basis is expected.
Friday, January 9, 2021
The US will publish the unemployment rate in December. Analysts expect an unchanged unemployment rate of 6.7%.
Canada will publish the level of unemployment in December. Unemployment is expected to rise slightly to 8.6%.
Source of the text: Investing, Zerohedge, Financial Times, Reuters, Tradingview