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FDA approves covid vaccine

Brent crude oil – Daily Candlesticks
Source: GKFX / MT4 (December 13, 2020)

BRENTSPOT has run into the 61.8% Fibonacci retracement level of its decline from the start of the year, which neatly corresponds to just over $50 per barrel. The confluence of resistance could at least temporarily halt the uptrend.
 

TAKEAWAYS


•    FDA approves and CDC recommends Pfizer’s Covid vaccine
•    S&P 500 drops for 3rd day, down on the week
•    Brexit trade talks extended (again)
•    Disney stock spikes to record high on Disney+ projections
•    WEEK AHEAD: Fed, BOJ, BOE meetings, possible US stimulus bill
•    DAY AHEAD: Japan / Europe industrial production
 

GURU WISDOM


“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.” - Peter Lynch
 

MARKETS


*Daily closing price
↘ EUR/USD    1.2111        (-0.21%)
↘ GBP/USD    1.3223        (-0.53%)
↘ USD/JPY    104.01        (-0.18%)
↘ S&P 500    3663.46    (-0.13%)
↗ Hang Seng    26,505.87    (+0.36%)
↗ Gold        1839.03    (+0.20%)
↘ Oil (Brent)    49.97        (-0.56%)
↘ Bitcoin    18,050        (-1.15%)
 

NEWS

CDC approves 


A landmark moment that many investors have been banking on has just happened – the approval of a coronavirus vaccine in the United States. A week after it was approved in the United Kingdom, the US has now approved the Pfizer/BioNTech covid-19. The FDA (Food and Drug Administration) approved the vaccine on Friday and that was followed by a recommendation by the CDC (Centre for Disease Control). Interestingly stock markets fell on news of the approval, raising the question – have people ‘bought the rumour and sold the news’ of the vaccine?
 

Brexit extended


EU commission President Ursula von der Layen has said on Sunday that Brexit trade talks will be extended as both sides aim to “go the extra mile”. No new deadline has been set, leaving the ultimate deadline as December 31 when the transition period ends. GBP/USD dropped heavily this week on the increasing chance of a ‘no deal Brexit’ but ended Friday off its lows amid lingering hope there would still be deal.
 

Disney stock


Disney stock jumped a huge 13% on Friday, taking it to a fresh record high after reporting a jump in Disney+ subscriptions to 86.8 million. Disney is forecasting it will have between 230 million to 260 million subscribers by 2024. The digital subscription service is helping insulate Disney from closed cinemas and theme parks.
 

Week Ahead


Stocks dropped last week amid rising covid cases and ongoing uncertainty about whether Congress will pass a stimulus bill but the declines were limited by optimism about the distribution of a covid vaccine. This week the Federal Reserve will decide interest rates and it will be the last big opportunity to strike both a Brexit trade deal and a US stimulus deal.
 

DAY AHEAD 


*Times in GMT
04:30    JPY    Industrial Production (MoM)(Oct)     3.8%    3.8 %
10:00    EUR    Industrial Production s.a. (MoM)(Oct)     2 %    -0.4 %
 

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