Analytics

How to start the week: analytics and forecasts — 21.12.2020

Fundamental analysis and forecasts for the future


Many believed in this, but were not ready to take risks. Bitcoin hit its all-time high amid talk of fund investments.

 

Must know

Bitcoin last week broke a historic maximum, which was just below the $ 20,000 level. It is noteworthy that the growth in demand for cryptocurrency proceeded without a significant increase in transaction volumes. It is possible that bitcoin is gradually replacing gold and will play the role of a protective asset.


The swing in trade negotiations between the EU and the UK continues to swing. At the beginning of last week, the parties were full of optimism and even allowed an agreement to be reached by Friday, but the work week ended with criticism from British Prime Minister Boris Johnson, who called Brexit without a trade deal the most likely outcome.


At the last meeting, the US Federal Reserve kept the key rate unchanged. The head of the body, Jerome Powell, noted that economic prospects remain very uncertain, therefore, if necessary, the Fed can increase the volume of asset purchases. The US dollar reacted to the results of the meeting with a fall.


The Bank of Japan has extended the program to support the country’s economy until September 2021, which implies an increase in investment in bonds and other debt securities of private companies. Also, the Bank of Japan allowed a revision of approaches to the formation of monetary policy, since the regulator still fails to achieve the target inflation rate.


Oil finished last week on a positive note, thanks to a 3.1 million barrels cut in US crude inventories, as well as forecasts from the World Bank. In his opinion, the cost of a barrel of black gold will gradually rise in price over the next two years.

A fundamental view

Tesla

This year Tesla will not only become part of the S&P 500, but will also solve the problem of a large debt burden. The sale of the next block of shares for $5 billion will help in this. Nevertheless, the current value of the asset corresponds to most of the target forecasts of investment companies. Therefore, traders may be inclined to sell Tesla securities.

Alibaba

A subsidiary of Alibaba is suspected of creating a computer vision technology that recognizes the faces of the Uyghurs, an ethnic minority of the PRC, who are discriminated against on national and religious grounds. It is assumed that the technology is used by special services in China.

If this is proved, the company may come under pressure from the international community.

Disney

The company plans to gain a significant share of the streaming services market. The company’s management predicts a twofold increase in the audience. Against this backdrop, BMO Capital Markets raised its target price for Disney shares to $185.

 

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