Global stock markets rebounded yesterday in the wake of positive news about Covid vaccines, along with data from the US that exceeded expectations and the appointment of former Federal Reserve Chair Janet Yellen as Joe Biden’s Treasury Secretary.
President Trump held a short – 63 second - press conference to take credit for recent stock market gains, with the Dow Jones crossing the 30,000 mark for the first time amid further upside expectations.
Also, Tesla's market value has exceeded half a trillion dollars after witnessed strong gains after joining the S&P 500 index. Meanwhile, Bitcoin prices rose to levels not reached since 2017, with $20,000 in sight.
In Europe, where several nations have implemented strict closures to combat the second wave of the pandemic, President Emmanuel Macron has announced a gradual easing of restrictions in France. However,bars and restaurants will remain closed over Christmas.
German Chancellor Angela Merkel has suggested tighter restrictions as her government debates providing more support to companies affected by the shutdown. In the US, health officials are working on guidelines to shorten the recommended quarantine period.
British Chancellor of the Exchequer Rishi Sunak is due to outline his short-term spending plans later today, with further heavy borrowing likely as he steers the UK economy through the pandemic’s repercussions.The government announced that it would ease restrictions imposed in the country during the Christmas period.
Trump's efforts to overturn the election result are now seemingly over, as the states of Pennsylvania and Nevada approved Joe Biden's victory, and Biden is currently working on forming a foreign policy team that works to calm international relations after a turbulent period in the Trump era.
Markets received the news of Janet Yellen's appointment very positively as Biden's position on a stimulus strengthened. Yellen is expected to work closely with the Federal Reserve to aid the economy. Markets are awaiting a number of important data releases today, including the ECB’s Financial Stability Report, the FOMC meeting minutes and weekly unemployment benefits data. Preliminary US GDP figures are also due today; growth is expected to rise by 33.1% in Q3.
With positive news about Covid vaccines, US crude contracts have reaching $45 a barrel. US crude inventories data is released later today, with analysts expecting a rise of 100,000 barrels on last week.