The Daily Shot Brief – January 7th, 2021



Equities: The news of Democrats taking control of the US Senate reignited the reflation trade. The market is betting on the federal government unleashing further fiscal stimulus, boosting consumption, economic growth, and inflation. Here is the relative performance of stocks that benefit from higher prices (Citi inflation long index) vs. those that do well in a deflationary environment.

Source: The Daily Shot

Bank shares rose sharply. Notice the spread between the regional and total banking indices. Democrats are likely to tighten the regulatory environment, which may have a greater impact on larger banks.

Source: The Daily Shot


Credit: High-yield bond spreads are approaching pre-crisis lows.

Source: The Daily Shot


Energy: WTI crude oil climbed past $51/bbl.

Source: The Daily Shot

Goldman expects Brent crude to reach $63/bbl by the end of the year.

Source: @ISABELNET_SA, @GoldmanSachs


Cryptocurrency: Technicals suggest Bitcoin is due for a pull-back.

Source: BCA Research


Japan: The yen has been rallying against the US dollar. However, the yen trade-weighted index has been flat over the past year.

Source: @TheTerminal, Bloomberg Finance L.P.


Food For Thought: Trust in scientists:

Source: Deutsche Bank Research

Edited by Daniel Moskovits

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