The Daily Shot Brief – September 4th, 2020



Equities: The market finally saw a healthy adjustment, as the dealers’ short gamma exposure exacerbated the selloff (the same effect that created the melt-up). The tech mega-cap shares sold off.

Source: @markets Read full article


Social media lit up with retail traders discussing their losses.

Source: reddit Read full article


But no worries. Individual traders got a taste for quick gains in the options markets, and many will be back shortly.


Commodities: Canadian lumber production has been following prices higher …

Source: Scotiabank Economics


… but supply is still tight.

Source: Scotiabank Economics


Rates: Savings and demand deposits have grown on the back of risk aversion and an aggressive fiscal response as a result of the pandemic, according to Piper Sandler.

Source: Piper Sandler


Over a longer period, growth in US deposits has been driven by the Fed’s QE, which boosted bank reserves since the financial crisis. According to the ECB, “without an increase in bank reserves, the total quantity of bank deposits would have fallen, broadly-speaking in line with commercial bank credit.”

Source: ECB Read full article


Emerging Markets: Brazil’s industrial production had a v-shaped recovery (as of July).

Source: Daily Shot


And service-sector activity is stabilizing (as of August).

Source: IHS Markit


Asia-Pacific: A recovery in Japanese IT-related goods shipments could signal higher global semiconductor sales.

Source: Barclays Research


Food For Thought: Presidential election polls in battleground states:

Source: Morning Consult Read full article

Edited by Devon Lall

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