Financial market research and analysis

MARKETS

News
• Asia markets bounced on Monday morning as 15 economies in the region signed a deal that formed the world’s largest trade alliance. Japan and Korea main indices gained more than 1.5%;
• The trade deal, signed on Sunday, aims to gradually reduce tariffs across many areas. The Regional Comprehensive Economic Partnership is now the world’s largest trade bloc, a deal that excludes the U.S. It marks the first time that East Asian powers China, Japan and South Korea are in a single trade agreement. The Pan-Asia trade pact covers a third of the world’s population and economic output;
• China stocks were mixed China Retail Sales disappoint, despite expected Golden-Week Boost;
• Dow Jones Industrial Average futures were up by more than 200 points. S&P 500 futures and Nasdaq 100 futures also rose;
• Trump refuses to concede election after acknowledging Biden victory. President initially tweets Democrat won because of rigged vote before vowing to fight on;
• Trump Lawyer Sidney Powell: "We're Getting Ready To Overturn Election Results In Multiple States";
• Dr. Fauci warns the U.S is likely to cancel Christmas, hints that masks & social distancing are here to stay. He added that Trump should work with Biden administration on Coronavirus response;
• Biden team calls for urgent action on stimulus as health situation worsens.

What else?
• U.K. Prime Minister Boris Johnson is self-isolating after possible coronavirus exposure;
• Elon Musk says ‘most likely’ has a moderate case of Covid-19;
• A SpaceX spacecraft carrying four astronauts soared into outer space Sunday — marking the kick off of what NASA hopes will be years of the company helping to keep the International Space Station fully staffed;
• Ireland warns of crunch moment in Brexit negotiations. Dublin says key outstanding issues on trade deal must be resolved this week;
• Trump allies explored Buyout of Newsmax TV as Fox News Alternative;
• Emirates working with Pfizer, others on vaccine transport ‘challenge;
• Japan’s economy rebounded sharply, growing an annualized 21.4% in the third quarter, data showed on Monday. On a quarterly basis, the economy grew 5%, better than forecasts of 4.4%,
• The Australian Securities Exchange halted stock trading shortly after the open, citing “market data issues.”

The Week Ahead
• Monday, Nov. 16:
Earnings: Vodafone Group PLC, Palo Alto Networks Inc, Tyson Foods Inc;
Macro: Market Holiday in India for Diwali, Preliminary Japanese Gross Domestic Product (GDP) (Q3), Japanese Preliminary Industrial Production, Chinese Industrial Production.
• Tuesday, Nov. 17:
Earnings: Walmart, Home Depot Inc, Experian PLC, Fortum Oyj, Imperial Brands plc, NIO;
Macro: U.S. Retail Sales, U.S. Industrial Production, Japanese Trade Balance.
• Wednesday, Nov. 18:
Earnings: NVIDIA, Lowe's, Target, TJX, A.P. Moeller - Maersk A-S, Clorox, Gazprom Neft OJSC, Western Digital, Metro, News Corp;
Macro: U.K. CPI, Eurozone CPI, U.S. Building Permits, U.S. Housing Starts.
• Thursday, Nov. 19:
Earnings: Workday, Netease, McAfee, Williams Sonoma;
Macro: U.S. Philadelphia Fed Manufacturing Index, U.S. Existing Home Sales, Peoples' Bank of China (PBoC) Loan Prime Rate Decision, European Council Meeting (which Is Seen As a Preliminary Brexit Trade Deal Deadline).
• Friday, Nov. 20
Earnings: Sysco;
Macro: U.K. Retail Sales, German Producer Price Index (PPI).

Quote of the day
"“If you think you are too small to make a difference, try sleeping with a mosquito.” – Dalai Lama

WRAP
U.S. stocks rose on Friday to a record close to cap off strong week as big value rotation continues. The S&P 500 advanced 1.4% while the U.S small caps index Russell 2000 jumped more than 2% to an intraday record, and posted its first all-time closing high since August 2018. Shares of cruise operator Carnival rose more than 7%. United Airlines and Boeing were both up more than 5%. At the sector level, energy and industrials rose 3.8% and 2.2%, respectively. In Europe, the Stoxx 600 closed fairly flat after initial losses. For the week, the index closed up by around 3.5%. Oil fell 2% on coronavirus surge on Friday but gained 8% over the week on vaccine hopes.