By Lachlan Meakin
US Equity markets rallied strongly last night with the Dow Jones jumping more than 200 points to hit another record. The 6 day winning streak has seen the Dows best upward run since August last year as investors remained optimistic about further Covid stimulus and economic recovery in the US.
Source: Google Finance
Corporate earnings tonight in the US includes Twitter (TWTR) who’ll be looking to continue the impressive earnings reports of the other tech heavyweights who have gone before.
Commodity prices also rallied with renewed optimism in the global economic recovery. Industrial metals copper and iron ore both had moves to the upside.
Both UK crude (Brent) and US crude (WTI) rose to levels not seen since the start of the COVID inspired route in early 2020.
With signs the global economy is recovering well,a rising oil demand along with a hawkish OPEC oil prices have continued their strong uptrend.
A Goldman Sachs research note has called Brent to be trading at $65 per barrel by mid year.
Goldman’s global head of commodities research, Jeffrey Currie, said in a note that accompanied the report:
“With vaccines being rolled out across the world, the likelihood of a fast tightening market from 2Q 2021 is rising as the rebound in demand stresses the ability of producers to restart production.”
Bitcoin was back in the news last night blowing past the high set back in January to be over $45,000 USD at the time of writing.
This came on the back of Tesla Inc. investing $1.5 billion in Bitcoin and signalling its intent to begin accepting the token as a form of payment.
This announcement lends Bitcoin increased legitimacy as corporations and financial institutes continue to treat the cryptocurrency as a serious asset class.
By Lachlan Meakin
|Wednesday, 10 February 2021
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