Biden Named Next US President
- After an ongoing vote-counting saga, news networks in the US have named Joe Biden as the President-elect of the US, defeating Donald Trump.
- While Wall Street generally favours republicans, the mix of a more “predictable” president with a Republican-controlled Senate could signal stability for many investors.
- Following a high-volatility week in markets, both the SPX500 and NASDAQ100 finished nearly flat on Friday, while the DJ30 registered slight losses.
- That being said, the three major indices registered significant gains this week, some posting their best weekly results since April.
Ant Group IPO Suspended
- Chinese regulators suspended the long-awaited, $30+ billion IPO planned for last Thursday.
- Ant Group stated that, based on the full verification and evaluation of the relevant matters after the meeting, it will decide whether or not to restart the issuance according to the situation and make a timely announcement.
- Ant Group IPO has always been a main focal-point for Alibaba investors because Alibaba has a 33% stake in it.
Bitcoin Breaches $15,000
- The world’s largest cryptocurrency powered through the $15,000 mark last week, and held above it for quite some time.
- However, Bitcoin later corrected, falling below $15K over the weekend, then hovering around it.
- In other crypto news, the Ethereum 2.0 mainnet deposit contract address went live last week, on which persons can deposit 32 ETH to become a validator on the new chain.
- Planned genesis time is for 1st December 2020, however, there must be at least 16,384 32-ETH validator deposits seven days prior to 1st December for genesis to trigger. If not, genesis will be triggered seven days after this threshold has been met, whenever that is.
Earnings Season Continues
- As of last week’s close, 319 companies of the S&P 500 reported earnings, with 79% of them beating revenue estimates and 85% beating earnings estimates.
- Alibaba reported better-than-expected profit for fiscal Q2. However, it also dropped 8% midweek after Ant Group’s IPO was suspended.
- Semiconductor giant Qualcomm jumped 12.75% on Thursday, on a strong growth forecast for 5G-compatible smartphone sales next year, and raised its revenue targets.
- Uber recorded a net loss of $ 1.1 billion in the 3rd quarter, weighed down by the health crisis. But it is still aiming for a return to balance by the end of 2021.
The Week Ahead
- Bank holiday in Canada, France and the US (Wednesday).
- Fed Chair Powell and BoE Governor Bailey to participate in a panel discussion about monetary policy at the ECB Forum on Central Banking (Thursday).
Written by a team of experienced financial analysts at eToro.
This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results.