Observations

Turkish Lira rebounded on Tuesday on the Erdogan’s rescue plan. The key point of the plan is that the Turkish Government will compensate losses of private deposits caused by Lira devaluation. Lira plunged on its support level (Chart I).

Apple is a bright example. It has been traded within an uptrend. On 13th of Dec it reached the top range bound and made a dead cross. This does not necessarily mean something negative, it is not a good sign either, though.

Goldman Sachs strategists highlighted that the companies in European equity benchmark have seen more upward revisions that those in the US market. That creates underperformance of European stock market relative to the US peers.

Traditionally defensive stocks such as Consumer Staples or Utilities are amongst worst losers, while traditionally volatile IT stocks are surprisingly resilient.

NVIDIA’s performance impresses: the stock has made more than 50% over the past month. The fundamental factors are clear: growing demand on the fastest processors from the side of Artificial Intelligence services is out of the question.

Largest European food producers (Danone, Nestle, Unilever) have been under cost inflation pressure for month. The chart above displays Danone stocks. It is easy to notice that sustainable uptrend is only possible when commodities are going down. Unlike the broad market, Danone and Unilever shares are still significantly lower than before coronavirus outbreak.