News & Analysis
News & Analysis

Overnight on Wall Street: Wednesday 06 January 2021

6 January 2021 By Deepta Bolaky


Equity markets

It was another mixed performance in the global stock market on Tuesday. European stocks were mostly under pressure while the US share market ended with modest gains ahead of the run-off elections results. In the European markets, while oil and gas stocks rallied on the back of a compromise regarding production cut, investors were concerned of more severe lockdown restrictions across Europe and the speed of the coronavirus vaccine deployment.

Source: Bloomberg

Major US equity indices recovered some ground and ended in positive territory after erasing more than 1% on the first trading day of the new year:

  • The Dow Jones Industrial Average gained 168 points or 0.6% to 30,392.
  • S&P 500 rose by 26 points or 0.7% to 3,727. 
  • Nasdaq Composite added 121 points or nearly 1 % to 12,819.

Currency markets 

In the FX space, major currencies were stronger against the US dollar. The Antipodeans and commodity-linked currencies like the Australian, New Zealand and Canadian dollar rallied lifted by higher commodity prices while the British Pound and safe-haven currencies posted modest gains.

Source: Bloomberg


While the Tuesday’s 13th OPEC and non-OPEC Ministerial Meeting acknowledged the need to gradually return 2 mb/d to the market, with the pace being determined according to market conditions, it reconfirmed the decision made at the 12th ONOMM to increase production by 0.5 mb/d starting in January 2021, and adjusting the production reduction from 7.7 mb/d to 7.2 mb/d. However, the crude oil prices buoyed on the surprise announcement from Saudi Arabia – they would voluntarily cut an additional 1 million barrels per day in February and March above its current quota while all while OPEC’s allies get to ramp up production. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading at around $49.75 and $53.60 respectively.


The precious metal continued its rally and edged higher above the $1,950 mark. As of writing, the XAUUSD is consolidating within a tight range around that level. 

Source: GO MT4

Key upcoming events

  • Commonwealth Bank Services PMI (Australia)
  • Caixin Services PMI (China)
  • Markit PMI Composite, 10 yr Bond Auction and Harmonized Index of Consumer Prices (Germany)
  • ADP Employment Change, Markit Services PMI, Markit PMI Composite, Factory Orders, and FOMC Minutes (US)
Thursday, 07 January 2021 
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0 6.958 0.812 0.045 0.225 0 0
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0.704 0 0 0 0

Disclaimer: Articles are from GO Markets analysts and contributors and are based on their independent analysis or personal experiences. Views, opinions or trading styles expressed are their own, and should not be taken as either representative of or shared by GO Markets. Advice, if any, is of a ‘general’ nature and not based on your personal objectives, financial situation or needs. Consider how appropriate the advice, if any, is to your objectives, financial situation and needs, before acting on the advice.