Message from Coach
*On this week’s market summary:*
▶️1. Credit Suisse has agreed a $600m settlement to end a long-running mortgage bond lawsuit just month after the bank said it had strong grounds to appeal a court ruling in favour of financial services group MBIA. “We are pleased to have resolved this legacy matter, which dates back to 2007,” said Credit Suisse, which is due to report fourth-quarter earnings next Thursday. The bank added that the settlement was “substantially less” than its previous guidance for a settlement up to about $680m and was fully covered by the $850m of litigation provisions it announced for the fourth quarter of 2020, which was intended to cover the costs of a string of causes related to the bank’s sale of residential mortgage-backed securities (RMBS) a decade ago. ▶️2. China and some East Asian nations racked up gains in their share of global exports in 2020, propelled by their ability to weather the challenges of the Covid-19 pandemic, according to a United Nations report released on Wednesday. China boosted its share of global trade the most, followed by Taiwan and Vietnam, the UN Conference on Trade and Development (UNCTAD) said. “The fall in global demand brought by Covid-19 has forced the least competitive suppliers out of global markets, while enabling the most competitive suppliers to thrive during the recovery process,” UNCTAD said.
▶️3. Hong Kong stocks gained on the first trading day of the Year of the Ox after investors returned from a long holiday weekend, tracking Asia-Pacific markets higher on optimism over a global economic recovery and roll-out of Covid-19 vaccines. The Hang Seng Index rose 1.9 per cent to 30,746.66, rising to its highest level since June 12, 2018 after ending the Year of the Rat on a high. The markets in mainland China are closed for the Lunar New Year holiday, with trading set to resume on Thursday.
▶️4. Global stocks began the week with gains amid signs the reflection trade has further to run and as the pace of coronavirus outbreaks slowed. WTI crude breached US$60 dollars a barrel as an arctic freeze gripped parts of the US. South Korean and Japanese shares led Asia higher, with the Nikkei 225 hitting 30,000 for the first time since 1990. S&P 500 and European futures pointed to gains. US markets are shut for Presidents’ Day, while exchanges in China, Hong Kong and Taiwan are also closed on Monday. The dollar retreated.
One of the must-ask interview questions for banking and finance is: “Have you read any news recently?”, with the follow-up questions: “How would you link this news to the market and what investment suggestions would you give to your clients based on this news?”
Showing your market sense and ability to provide feasible investment ideas would help to differentiate you from other candidates. Therefore, apart from the weekly news update / investment insights, we have also generated this Weekly Market Summary for you to have a quick understanding of the market development and tips to answer some hot discussion topics.
Take a look of the summary and WhatsApp us in the group if you have questions.