The global rally stalls out, but Goldman Sachs is doubling down on value stocks

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Good morning, Bull Sheeters. The global rally is on pause this morning as storm clouds—mainly in the form of COVID gloom and Brexit uncertainty— gather. It’s a risk-on morning.

That’s after all three major U.S. indexes closed out last week in record territory. A big thanks to Rey Mashayekhi for taking the keys to shepherd you through that. See, good things happen when Rey is in charge.

Let’s check in on today’s action where I get into Goldman’s bullish call on value stocks for 2021.

Markets update

Asia

  • The major Asia indexes are mostly lower in afternoon trading with Japan’s Nikkei down 0.8%.
  • China reported a big jump in November exports, its biggest monthly gain since the pre-COVID days
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The potential impact of Brexit without a trade deal By Reuters

© Reuters. FILE PHOTO: Britain’s chief negotiator David Frost and EU’s chief negotiator Michel Barnier arrive for trade talks in Brussels

By Guy Faulconbridge and John Chalmers

LONDON/BRUSSELS (Reuters) – Britain and the European Union are seeking a post-Brexit trade deal, with failure likely to result in increased chaos in mutual trade, financial markets tumbling and huge economic costs.

Here are some of the potential pressure points of a failure to reach agreement on trade.

STERLING

Investors and banks have long predicted a trade deal would be done, so a no-deal would hit the British pound, foreign exchange traders say.

But investor sentiment was hit by the sides saying on Saturday that there was still no agreement covering annual trade worth nearly $1 trillion, and sterling has fallen against the U.S. dollar since then.

The shock result of Britain’s referendum on leaving the EU in 2016 sent the pound down

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