Chinese IPO rules, flight cancellations, holiday trade

Author: Daniel Shvartsman

Investing.com – The last week of the trading year has begun with a calm surprise. While investors expect the Santa Rally to end the year boffo in major indices, there are still challenges ahead of Covid, as the cancellation of holiday weekend flights makes clear. The news about the recent cuts in the IPO list from China is another reminder of the challenges that the economic giant has posed to investors this year, and the oil week is starting to go wrong. Here’s what you need to know about the financial markets on Monday, December 27th.

1. Omicron causes damage even if it is mild

While last week’s rally and the biggest destinations were proving that the Covid-19 Omicron variant was lighter than the previous variants or at least with a lower risk of hospitalization, the holiday weekend was a reminder of the disaster. the virus can still affect the economy.

On Christmas Day in the US, the airline was short of staff and, according to Southwestern, due to weather problems. U.S. airlines are listed as a pre-market trading group. As the number of cases spreading from New York to Australia continues to rise to new heights, the suspension reminds us that even if the cases are so serious, as we all hope, the necessary quarantine or recovery from minor cases can hinder the already prolonged economy. .

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2. China sets new guidelines for listing abroad

China proposed companies to list shares abroad. It is likely that the guidelines will list Chinese companies with variable interest entities – VIEs – abroad, but it does provide a legal framework that will allow them to do so.

It remains to be seen, in the context of a long year of Chinese equities and the regulatory repression of industries ranging from education, gaming, casinos and technology, to the extent that the new guidelines provide certainty that they will be welcomed, or not. they will be considered too hard. Initial revisions are below – Alibaba (NYSE :), JD.com (NASDAQ :), Baidu (NASDAQ 🙂 and Didi Global Inc ADR (NYSE 🙂 are among the Chinese companies that reduce US listings by more than 1%. pre-market trade.

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3. “Santa Rally” or a slow week?

The future of the US is looking a little higher; S&P 500 futures are up 0.16% from 6:45 a.m. and 0.06% and Nasdaq futures are up 24%. . they are slightly higher in mid-day trading, and slightly lower in closed. This year the market has been on a path to minimum resistance, and the first signs for Monday are to go down that path today. The question is, after the S&P closed at an all-time high last week, is there a lot of room left for 2021?

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4. Oil starts the week lower, at least in the US

Oil began to fall by more than 1% this week, or at least did so. They are negotiating from 6:45 p.m. Oil rose 4% yesterday due to omicron fluctuations and general optimism about the global economic recovery, so it remains to be seen whether this is just generic volatility or whether flights are canceled and consumer travel is slowed during the holiday season.

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5. Divergent paths for meme stock stars?

A couple of the most popular stock memes may be in focus today. On the one hand, GameStop Corp. (NYSE 🙂 has already seen a decline in Higher Capital, with shares down .5% in pre-market trading. On the other hand, Spiderman: No Way Home at the box office, deducting $ 1 million in global ticket sales – he made his first post-pandemic film – and grossing $ 467 million at the U.S. box office. This could excite AMC Entertainment Holdings Inc (NYSE 🙂 shareholders, even though shares have fallen by .6% so far before the market. Meanwhile, Sony The Group Corp. (NYSE :), which made the film, is trading at .9%, showing that the market recognizes the economic import of the news.

And speaking of memes, trading is up 2% in the beginning, ahead of the key cryptocurrency pair, which is up just 0.6%.

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