How to start the week: analytics and forecasts — 23.11.2020

Fundamental analysis and forecasts for the future

The stock markets may start the week in negative territory during the new week. This is due to the cutbacks in the US concessional lending program and the lack of unity in the EU.


Must know

US Treasury Secretary Steven Mnuchin decided to cut the concessional lending program, which was adopted on an emergency basis to support the country’s economy due to the impact of the COVID-19 epidemic. These programs were set to expire on December 31st. Now investors are wary, which is reflected in the growth in demand for gold.

The European Union is split again. This time Hungary and Poland refused to approve the general budget of the union for the next 7 years. The reason for this was a clause allowing these countries to be deprived of subsidies if Brussels proves that they violate the rule of law.

By the end of last week, the EU authorities announced significant progress in negotiations with the UK on the terms of a future trade deal. However, the market could have guessed about this as early as Wednesday, when the chief negotiator from the EU side Michel Barnier canceled a planned briefing.

Pfizer plans to ask the Food and Drug Administration of the United States Department of Health and Human Services (FDA) for expedited approval for the COVID-19 vaccine. The EU plans to purchase a vaccine for 10 billion euros.

There is a new wave of optimism in the cryptocurrency market, as bitcoin has come close to a record price value in its entire history, from which it retreated in January 2018. The abnormal demand for bitcoin is explained in different ways, but analysts at Deutsche Bank believe that investors simply want to protect their funds from inflation.


A fundamental view


The news that Tesla will join the S&P 500 has given the stock a strong week of gains. Morgan Stanley previously set a price target for Tesla at $540, as the company can increase profits by selling software and services.


Analysts predict Nvidia’s capitalization will rise to $1 trillion if the company still gets approval to buy the processor manufacturer Arm. But even without this, Nvidia manages to increase revenue and break records, as shown in the latest quarterly report.


The company’s shares may temporarily not be the most popular on the market. The first reason is the negative epidemiological situation in the world, which can still lead to general quarantine. The second is to raise salaries for coffee shop employees.


Related posts

News, Trends, & Analytics 04.09.2019

Oil received a negative stimulus due to the lack of progress in negotiations between the US and China, as well as the increase in oil production by OPEC countries.

News, Trends, & Analytics 18.09.2020

Today the focus is on the growth of employment in Australia, statements by the US Treasury Secretary, and also — a hint of negative rates in the minutes of the Bank of England. &...