Weekly News Summary for August 7-13, 2020

Friday, Aug. 7, 2020: Trump Bans TikTok and WeChat with Executive Orders

US President Donald has signed an executive order that will prohibit US residents from transacting with Chinese video-sharing app TikTok and its owner Bytedance Ltd., due to concerns over the safety of the nation’s users’ data.

Trump has also issued a similar ban of messaging app WeChat, but the order did not include its owner, Tencent Holdings Ltd., although that was not enough to keep Tencent’s stock from dropping 5.0% in Hong Kong.

Monday, Aug. 10, 2020: Oil Stabilizes on Aramco’s Upbeat Demand Forecast

Oil prices traded on steady ground on Monday after the chief executive of Saudi Aramco, Amin Nasser, showed optimism over forecasts for demand, stating that he expects demand to continue growing through the end of 2020.

US WTI crude futures gained 1.4% to $41.80 per barrel, while global benchmark Brent crude futures added 1.0% to $44.83 per barrel.

Tuesday, Aug. 11, 2020: S&P 500 Futures Post Record High on Stimulus Bets

The S&P 500 futures rose to a new high on Tuesday, as investors dismissed simmering tensions between the US and China, betting on a stimulus-led economic rebound from the coronavirus pandemic.

The benchmark index’s futures contract climbed 0.7% to $3,376, which was 1% below the record peak of $3,393.52 registered on February 19.

Wednesday, Aug. 12, 2020: US Dollar, Treasury Yields Hit Their Highest Level

The US dollar surged to its highest level in two weeks and the US 10-year Treasury yields were up to their highest in over a month on Wednesday, while gold futures stabilized after registering a 5% decline on Tuesday.

Bond yields have been supported by signs of higher-than-expected factory gate inflation in Tuesday’s release of the US’ producer price index (PPI) data, which suggested that the market may be exposed to any unexpected negativity from July’s consumer price index (CPI).

Thursday, Aug. 13, 2020: Nikkei Hits 6-month High on Gains in Chipmakers

Japanese equities hit a six-month high on Thursday, supported by strong gains in the technology sector, with market players continuing to hope for more fiscal stimulus out the US despite a lack of any signs of progress in discussions between the White House and Democrats.

MSCI’s broadest index of Asia-Pacific shares outside Japan were up 0.3%, while gains in tech stocks, including chip-related shares pushed Japan’s Nikkei 225 higher by 1.8% to record a six-month peak.