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Busy week for the global markets - Weekly Review, August 10-14

Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
An economic recovery could be in sight for some countries

Monday: The Republicans and Democrats haven't reached a consensus regarding another stimulus package. Indices didn't budge over the news: USA30 gained 1.3%, while USA500 jumped 1.3%. TECH100 added 0.39%.

Gold traded at $2,030.30 per ounce after it gained nearly 2%. 

Even though China reported an easing in July's industrial deflation, HongKong45 fell 0.37%.

President Trump signed some executive orders, the most important being the one that makes workers displaced by the pandemic eligible to receive $400/week in unemployment benefits. From Trump's point of view, the new amount will work as an incentive, and people will have to work.

Twitter could be a competitor to Microsoft, as both companies are trying to buy the infamous TikTok after President Trump revised his initial decision to ban the app. 

Marriott International posted higher than expected Q2 losses, marking its first quarterly decline in almost a decade. The revenue figures came in at $1.46 billion, 72.4% lower than last year's.

Porsche posted an after-tax loss of €329 million for the six months of 2020. After the report, Porsche stock price fell by 1.45%.

Tuesday: Gold had the most significant drop in seven years – 5.35%. It settled at $1,921.65 per ounce. 

Brent Oil went up 0.52% to $44.73 per barrel. 

The UK had the most significant quarterly job drop since 2009 – 220,000 remained jobless due to the pandemic. UK100 climbed 1.8%.

Tencent Music Entertainment impressed the markets with its Q2 earnings. Compared to last year's numbers, this year's revenue increased by 18% to $997 million. Its user-base rose 52% to 47.1 million – marking the fastest quarterly increase. 

Occidental Petroleum posted a Q2 net loss of $8.35 billion. The loss per share was $1.76, beating the $1.68 forecasted. Since the beginning of the year, its shares decreased by 61%.

Pfizer announced that it would start to produce and deliver Gilead's Remdesivir. Gilead stock price gained 0.35%, while Pfizer added 0.21%. 

President Vladimir Putin announced that Russia registered the world's first-ever COVID-19 vaccine. The vaccine will be in production starting September. 

Wednesday: European markets had a mixed session, with France40 adding 0.2%, and Germany30 losing 0.2%.

Moderna and the US government reached a new deal. The latter will pay $1.5 billion for 100 million doses for Moderna's potential COVID-19 vaccine. After the announcement, Moderna stock price added more than 8%.

E.ON SE reported better-than-expected Q2 earnings. The revenue figures came in at €12.84 billion, almost double from last year's €6.72 billion. After the report, E.ON stock was trading 0.56% lower. 

Tesla announced a 5-1 stock split, which will take effect starting August 31. Following the announcement, TSLA stock price went up 7%. 

The Office for National Statistics announced that the UK economy contracted by 20.4% in just three months. However, the economy grew by 8.7% in June. Following the report, GBP/USD traded 0.38% lower, while UK100 added 1.58%. 

Thursday: After the positive data from the US Department of Labor, USA30 lost 0.29%, while USA500 fell 0.29%.

The largest tourism and travel company in the world, TUI, reported a net loss of €1.42 billion due to the pandemic. At that time, the TUI stock price lost 4.94%.

Fossil sales dried up in Q2, according to the published figures. Sales halved in Q2 compared to $501.4 million posted at the same time last year. After the report, the stock price lost 3.53%.

Tencent, the parent company of Tencent Music Entertainment, reported a revenue of $16.53 billion, representing a 29% increase from last year's figures. The net profit came in at $4.8 billion. Year-to-date, stocks gained 39%.

For the first time since the pandemic, the US weekly unemployment claims came in lower than 1 million, at 963,000. From the experts' point of view, it could be a sign of economic recovery from the pandemic.

Friday:  The European markets reported losses after the German consumer prices index showed that the country is far from an economic recovery. Germany30 closed the session 0.2% lower. In France, the unemployment rate dropped to 7.1%, and France40 fell 0.1%.

EUR/USD gained 0.4% to 1.1825.

Lyft posted revenue figures that were 60% lower compared to last year's $867 million. It had a loss per share of $1.41. 

Baidu, the Chinese AI, and internet company posted a profit of $507 million. At the same time, revenues from online marketing were down 8%. In after-hours trading, stock price fell 8%. 

Epic Games is suing Apple and Google due to Fortnite's removal from their respective app stores. Epic invoked unfair practices regarding in-app payments.  

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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.