Yazar: Geoffrey Smith
Investing.com – Silver saw $ 30 as an army of individual investors left GameStop. There are still remnants of the short selling squeeze in other stocks. With the help of the merger talks of Exxon and Chevron, the stock markets will rise at the opening. Chinese manufacturing PMI data is at its lowest level since July, with the return of quarantines.
Here’s what you need to know in financial markets on Monday, February 1.
1. Leaving GameStop (NYSE 🙂 – here’s a jam in silver (# silversqueeze)
As the army of individual investors gathered around social media chat boards focuses on a new goal – silver, the craze for heavily short-selling stocks seems to have subsided.
It rose 11% to $ 29.89, past $ 30 for a short time. The bulls have a well-rounded investment thesis: all industrial metals enjoy healthy increases as the world manufacturing profits from changes in spending patterns during the pandemic. The solar cell and electronics industries that increase the demand for silver are also enjoyable.
The financial system, however, is not short-selling silver – a major difference between stocks that rocketed last week and this market. And it’s none other than Ken Griffin’s Citadel, who has been a Wall Street player for longer than many, targeting the anger of individual investors last week.
2. Exxon ve Chevron holding merger talks
According to the Wall Street Journal report Exxon Mobil (NYSE 🙂 and Chevron (NYSE 🙂 executives held preliminary talks during the dark days of 2020 to merge the companies.
The two companies said the talks were temporary and that there was no discussion currently going on. However, the fact that they interviewed is a striking indicator of the pressure on Big Oil last year, as the epidemic accelerated the trend of moving away from oil and gas consumption and switching to greener energy sources.
On the news, Exxon Mobil shares rose 2.1% while Chevron gained 1.7%. Both indicators had dropped to a three-week low after disappointing quarterly results last week.
3. Stock markets will rise at the opening; jamming continues in the middle of the earnings streak
US stocks will rise at the opening after their worst weekly loss in three months last week.
It increased by 216 points and by 1.0%.
The earnings period continues in the usual recession course at the beginning of the week: the names to report today after the closing: Thermo Fisher, Vertex and NXP Semiconductors (NASDAQ:).
There are still remnants of last week’s short selling squeeze: GameStop rose 5.4% ahead of the market, while AMC Entertainment (NYSE 🙂 gained 22%. Koss gained 7.8% and Bed, Bath & Beyond 6.7%.
4. China’s PMI figure is the lowest it has seen since July; GBP rises with vaccine victory
The silver boom is happening just at a time when the Chinese economy shows signs of weakening. Caixin Manufacturing PMI data dropped to 51.7 points, the lowest level it has seen since July, due to local outbreaks that have resulted in quarantine tens of millions of people and imposing restrictions at various stages in the business sector.
In Europe, IHSMarkit manufacturing PMI data was mixed; As Germany weakened, Spain entered the downsizing zone again. France and Italy were, as expected, strong as England. The eurozone PMI went up somewhat, exceeding expectations for a drop.
On the news, the pound saw a five-month high against the euro, and the dispute over vaccine distribution was resolved after the EU Commission gave up the threat of customs control on the Irish border.
5.Oil backed by OPEC’s compliance marks
Oil soared after reports showed that OPEC members adhered to the set production targets and were not tempted to produce more to earn more at current favorable prices.
It rose 1.1% to $ 52.75 and rose 1.4%.
This discipline is even more striking considering the intense budget pressure that many OPEC members feel. Iraq, the second largest producer of the bloc, started negotiations with the IMF last week for the aid package. According to reports published at the weekend, the Iraqi government has cut spending of $ 20 billion this year.