Market update: US indexes at a fresh record high on McCain’s support, Musk has just build the biggest battery in 100 days

1 Dec

by Mihály Tatár

 

Good Morning!

 

  • The news that even Senator McCain – Trump’s arch-enemy and the person who single-handedly destroyed Republican efforts to repeal Obamacare – is supporting the tax reform bill, pushed US markets to a fresh record high (SPX +0.82%, Dow +1.39%, DAX -0.29%, Nikkei +0.48%, Shanghai -0.36%). Tech stocks also bounced (Apple +1.4%, Facebook +1.1%, Amazon +1.3%), altough they are far from their pre-Wednesday highs, and with the rising US yields, Gold crashed lower to 1275 USD (even with rumours that Trump is planning to fire Tillerson for being soft on North Korea, which was soon denied by the White House). As expected here, oil prices did roughly nothing as OPEC agreed to prolong the production cuts for nine months (this time joined by Nigeria and Libya as well), as traders focus on the global growth theme and the US output (WTI 57.80, Brent 63 USD). After the classic ballistical rise at the beginning of the week, gravity did find Bitcoin (-16% to 9645 USD), and the negative news, very tellingly, were EU and US central bankers talking negatively about the cryptocurrency. (This was nothing, wait until the first scandal that sanctioned organizations use it for money laundering.) In the meantime, the GBP rallied further (GBP 1.3550, EURGBP 0.8780) as the market kept going after the ’Brexit negotation collapse by year-end’ shorts, and Bloomberg notes that on a risk-adjusted basis, the Thai Baht has been the best-performing currency this year, as funds just love Thailand’s ever expanding current-account surplus and stabile macro figures (USDTHB 32.64, a 10% rallly since January).

 

  • Billionaire Elon Musk defied his doubters by beating Friday’s deadline and rapidly installing the world’s largest battery in South Australia (100 megawatts of power within 100 days). The battery-storage industry is heating up fast, with South Korea’s Hyundai already building a 150-megawatt lithium-ion unit, and Bloomberg counting a total new capacity of 1.650 megawatts per hour in 2017, four times higher than in 2016.

 

  • While the US media was preoccupied with the latest sex scandals and Disney introducing their first male princess in a children’s cartoon, geopolitical analysts heatedly debated the latest series of significant events: According to unconfirmed reports, thousands of elite Chinese troops  were deployed in Syria (!) to fight Turkey-backed Uighur militants – the Islamic minority that is causing headaches to Beijing at home – and the fact that North Korea has just attained world-power ability by not only building an intercontinental missile but by mastering re-entry technology and mobile launchers. (The latter two seems to have caught Western intelligence services completely by surprise. From now on North Korea can also blackmail the West by threatening to sell the technology, or missile parts, to anyone interested.)

 

 

Have a nice day,

Mihály

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