Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stock Rally Fizzles, Powell to Speak, Gloomy IEA - What's up in Markets

EconomyNov 12, 2020 06:42AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

 By Geoffrey Smith 

Investing.com -- The global rally in stocks fizzles, jobless claims and U.S. CPI data are due, and the heads of the Federal Reserve, European Central Bank and Bank of England all chime in on the outlook for monetary policy. Disney reports after the close - and oil weakens after another downgrade to global demand forecasts. Here's what you need to know in financial markets on Thursday, November 12th.

1. Global stock rally fizzles

The global rally in stocks on the back of Pfizer’s vaccine news ground to a halt, as markets took on board the near-term challenges of a still-potent coronavirus.

European stock markets were already falling, even before the release of a surprise drop of 0.4% in Eurozone industrial production in October that underlined the impact of the second wave of Covid-19. The number was a surprise not least because no country has gone so far as to shut its factories again. Industrial bellwether Siemens stood out with a gloomy outlook for the year.

Markets were also unsettled by rising case numbers across New York state, a day after New Jersey tightened its restrictions on non-essential businesses. However, New York City mayor Bill de Blasio said it wasn’t yet time to impose any sort of fresh lockdown on the city.

The mood wasn’t helped by the optics of Pfizer (NYSE:PFE) CEO Albert Bourla selling most of his Pfizer stock so swiftly in the wake of Monday’s announcement. While the sale was pre-programmed, it raised suspicions that the vaccine may not be all that the market had hoped on Monday.

2. Jobless claims, CPI due

The U.S. economy gets its weekly reality check from the labor market with initial and continuing jobless claims at 8:30 AM ET (1330 GMT).

Initial claims are expected to have fallen only marginally to 735,000 from 751,000 a week earlier, while another 385,000 drop in continuing claims is expected. The figures will be the first since October’s surprisingly strong nonfarm payrolls growth was published.

Also at 8:30 AM ET there will be consumer price inflation data for October, where the annual rate is expected to tick up to 1.8% from 1.7% in September. The figure likely understates the actual rate, given that the pandemic has shifted consumption more toward high-frequency items like food, where prices are rising faster.

3. U.S. stocks set to open mixed; tech rotates back into favor

U.S. stock markets are indicated to open mostly lower, with the rotation trade into cyclicals and value stocks going continuing to correct.

By 6:30 AM ET (1130 GMT), Dow Jones futures were down 125 points, or 0.4%, while S&P 500 futures were down 0.1%, while Nasdaq futures, which had already outperformed on Wednesday, doing so again with a 0.3% rise.

Analysts suggest that the shift into beaten-down value stocks had gone too far initially, while underlying demand for the insurance offered by growth stocks remains healthy.

Walt Disney (NYSE:DIS) and Cisco Systems (NASDAQ:CSCO) lead a dwindling bunch of quarterly updates, both of them after the closing bell.

4. Powell, Lagarde and Bailey to talk about the policy outlook

Federal Reserve Chairman Jerome Powell, ECB President Christine Lagarde and Bank of England Governor Andrew Bailey will all address a virtual forum on central banking at 11:45 AM ET.

Powell’s appearance will be the first since Joe Biden was declared President-elect last weekend, which may allow him to be less guarded about the policy outlook than he was at his press conference last week.

Lagarde, meanwhile, had told the same event on Wednesday that the ECB is likely to focus on its cheap long-term loan offerings and on its 1.35 trillion pandemic-related bond-buying program when its governing council meets again in December. Her failure to play up the ECB’s discount rate suggested to analysts that the ECB will leave its official interest rates unchanged, however.

Bailey’s comments will again be scanned for hints about whether the Bank of England will experiment with negative interest rates, something the market is still betting on.

5. Oil steady as IEA downgrades forecast; U.S. inventory data due

The International Energy Agency followed OPEC in revising down its forecasts for global oil demand this year, in the face of a resurgence of Covid-19 across the northern hemisphere.

The thinktank also predicted a more modest rebound in 2021 than it had previously expected, saying that the effects of any vaccine against the coronavirus are only likely to be felt in the oil market from the second half of the year.

It also noted that global oil stockpiles remain historically high. The U.S. government will update its weekly stockpile data at 11.00 AM ET, a day later than usual due to the Veterans Day holiday.

Stock Rally Fizzles, Powell to Speak, Gloomy IEA - What's up in Markets
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (7)
Mary Holland
Mary Holland Nov 20, 2020 5:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Pfizer stock is up this morning that was a preprogrammed sale......if he halted it then it would look like insider trading learn how this stuff works before commenting he had no choice in the matter especially now
Robert DZ the patterns
Robert DZ the patterns Nov 19, 2020 6:43PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Powell should get back to money creation, not speaking, LOL
Ikenna Okoye
Ikenna Okoye Nov 13, 2020 11:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good world full of scam people with scam ideas
Barry van Asten
Barry van Asten Nov 12, 2020 8:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
1) Only the media has declared Biden pres. elect - electoral college has yet to vote2) a pre programmed sale by a CEO of this $$ amount is suspect bc CEO’s know whats in the pipeline - hello
tom gwinn
tom gwinn Nov 12, 2020 8:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
stop it. he won get over it
Adam Arndt
Adam Arndt Nov 12, 2020 8:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thats not how any of this works. The statistical impossibility of a Trump win declares Biden pres elect.When you’re in scope for SEC Insider regs, you don’t get to choose WHEN your stock sells. It happens at regular predetermined intervals for exactly that reason.What the CEO knew is irrelevant to the stock sale because he can’t choose when to sell it or it IS illegal insider trading and the SEC swoops in.Extremism is a disease affecting the brains ability to accurately weigh information; lay off the sauce while you still have some brain cells left.
Maxwell Owino
Maxwell Owino Nov 12, 2020 8:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
About the choosing when stocks sell it note a choice though it's the watch out of the rising, falling and opening of the market that's what makes business.
Wrinkled Asian
Wrinkled Asian Nov 12, 2020 8:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If you still think Trump will win, want to bet some money on it?
issen van
issen van Nov 12, 2020 8:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Adam Arndt But the company can make an announcement on any day they choose to, right...knowing the CEO’s sale date in advance?
Hunt Richardson
Hunt Richardson Nov 12, 2020 8:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
vaccines don't save lives on their own. vaccinations do. will take at least four months to slow the curve
Antonio Velardo
Antonio Velardo Nov 12, 2020 7:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Powell to speak 😱
Daniel Lu
Daniel Lu Nov 12, 2020 7:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not a good sign
Daniel Lu
Daniel Lu Nov 12, 2020 7:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not a good sign
Santi Santi
Santi Santi Nov 12, 2020 7:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Do you mean rally in value stocks??? Should I sell all today??? You're freakin' me out!!!
Santi Santi
Santi Santi Nov 12, 2020 7:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
note to self... calm down... they have to write SOMETHING every morning. It's just their job. DON'T FREAK OUT!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email