US Stimulus Hopes Alive
The US index slipped another 0.30% on Monday as it once again failed to an attempt at the 91 handle.
The recent bipartisan covid-19 relief plan is said to be split into two packages to win approval after weeks of deadlock, weighing in on the greenback.
One bill will allocate about $748bn to small business loans, jobless benefits, and vaccine distribution. Another bill will allocate more than $160bn to state and local governments that are currently struggling.
In addition, Joe Biden has said it is time to turn the page after validation of his Presidential victory.
How much more can the index take, as it falls back to multi-year lows?
Industrial Production Immune to Second Wave
The euro closed indecisively yesterday as further covid-19 restrictions weighed in on sentiment.
Some countries that have been forced to go into full lockdown before the holiday period could see the pair lose its bullish stance.
However, the eurozone industrial production data remained strong for October. But could the winter months now see a drop in industrial output?
Brexit Hanging by a Thread
Sterling was another currency that closed indecisively against the dollar on Monday, after bouncing between the 1.33 and 1.34 handles.
Chief Brexit negotiator Michel Barnier said that two conditions remain unresolved in trade negotiations, as the talks are extended past Sunday’s deadline.
In addition, millions of more people in England will move into tougher covid restrictions, as a new strain of the virus is forcing London to face the brunt of the latest stricter measures.
Stocks Await Vaccination Results
The Dow booked its worst trading day in 2 weeks, after initially hitting a record high.
The S&P slid 0.4%, with more than 70% of the companies within the benchmark falling at the start of the week. The Nasdaq ended Monday’s session 0.37% higher, with Tesla being the main performer once again.
Whilst investors are optimistic about the arrival of a vaccine in America, traders are realizing that the distribution of the vaccine is not going to be a silver bullet and is not going to be as effective as people hope.
Gold Slides on Vaccine Rollout
Gold closed 0.80% lower yesterday as sentiment once again shifted, with the FDA finally granting emergency authorization for the Pfizer antidote for use in the US.
The $1850 level slipped out of the grasp as a tumble towards $1800 hit the yellow metal hard.
Can we see a rebound in today’s trading back to the psychological handle?
WTI Settles at $47
Oil closed 0.62% higher on Monday as vaccine optimism boosted expectations for a rise in global demand.
In addition, a tanker explosion in Saudi Arabia also lifted the price, as the black gold shrugged off widening lockdowns across the European continent.