Another Covid story

Given that the media have been obsessed with the presidential election, and with covid, it’s not surprising that a story which combines the two is popular.

Wrap

Equities: generally down, except Mexico & the UK. It’s not often that those two markets move together against the world, especially when FX markets seem to have been quiet.

Gold was down, again. Commodities were generally down, with the exception of copper, aluminium, wheat and BDIY. Sugar was flat, but is now up 18% over 3 months.

With the exception of a couple of German yield curve points, no govt. bond yield curve is now inverted. Even Japan shows a healthy slope. The UK curve is exceptionally flat. Global corporate credit is getting more expensive, typically 20bp over the month. This can’t go on for ever.

There is a SPAC fever. There will be severe adverse selection of VC firms that IPO via a SPAC. This will end in tears.