By Lachlan Meakin
Major Indices took a breather last week, with US equity markets closing down more than 1% after posting record highs the week prior. In economic news, the incoming US administration announced a $1.9 USD trillion fiscal-stimulus plan that aims to counter the effects of COVID-19 and support markets as recent weak economic figures are indicating they are under some stress.
With reported deaths in Norway of patients who were recently administered the Pfizer vaccine, US vaccine distribution falling well short of expectations and new coronavirus strains being detected, investors are concerned that economic lockdowns could be longer than hoped.
US markets are closed on Monday for the MLK holiday. After that, the earnings season will kick off with big names like Intel, IBM, Netflix, Intel, Goldman Sachs and Proctor and Gamble reporting this week. These bellwether companies should give an indication of how the US economy has weathered the COVID storm.
With impressive rallies the week before, Major Cryptocurrencies pulled back last week but still remained well bid on any significant drop. A strengthening US dollar and comments from ECB President Lagarde regarding the need to regulate Bitcoin could be headwinds going forward for these assets.
After declining for 3 months straight the US dollar Index bounced off support and rallied close to 1% for the week. This meant a decline in USD pairs with AUDUSD finishing near the 0.77 big figure.
This US dollar strength also weighed on USD denominated commodities, with both Oil and Gold declining for the week.
|Tuesday, 19 January 2021
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