To top it up, President-elect Joe Biden swept away all hopes that the trade war between the US and China would end. Earlier, The New York Times cited Biden as saying that he would keep the existing import tariffs on Chinese goods for the time being. He also signalled a hard line against Sino trade abuses and industrial espionage.
US Indices Market Situation:
The Dow Jones Industrial Average gained 0.20% or 60 points. In comparison, the S&P500 edged 0.20% higher, and the Nasdaq Composite fell 0.05% as the market cheered the possibility of a US stimulus package to boost the economy. US House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer supported the bipartisan $908 billion stimulus deal covering support for small businesses and unemployed Americans. The deal should serve as a starting point “for immediate negotiations,” Pelosi and Schumer said in a joint statement.
US Stocks Markets Rally
US stocks rallied on vaccine hopes. The update on the stimulus package could not have arrived any better, as the UK approved temporary emergency use authorization for Pfizer (NYSE: PPE)’s vaccine and its development partner’s biotech company BioNTech (NASDAQ: BNTX).
The US approval for the long-awaited cure is not too far on the horizon either, with many expecting it to arrive before the year’s end.
Meanwhile, Moderna (NASDAQ: MRNA) is expected to begin trials for its COVID vaccine in children aged 12 to 18, The New York Times noted.
Overall, the direction remains bullish for the time being, with pharma companies leading the trend. Against this background, airline stocks including American Airlines Group (NASDAQ: AAL) and United Airlines (NASDAQ: UAL) climbed 4% and 3%. Big economic data is closely in focus for further confirmation, with the NFP next on the docket.
Currencies Exchange In the World
The US Dollar was nudged lower as stimulus talks bring risk back on the cards. At 3:55 AM ET (07:55 GMT) on Wednesday, 2 December, the Dollar Index (DXY), tracking Buck’s performance against the other six currencies, declined 0.2% to 91.157, hitting its lowest level since April 2018.
EURUSD moved 0.2% higher, to 1.2081, reaching its highest in more than two years, propelled by strong German retail sales for October. In October, sales rose 2.6% in Europe’s strongest economy, following an upwardly revised decline of 1.9% in September.
USDJPY also rose 0.2%to 104.47, while AUDUSD went up 0.2% to 0.7381.
Meanwhile, the Canadian dollar hit a record 52-week high against its US counterpart in early trading on Wednesday. Will this uptrend continue? It’s all hanging on Canada’s employment figures due Friday, at the same time with the NFP.
Commodities Markets For December
Spot Gold rose 0.8%, reaching $1,830.04 by 4:00 PM ET (20:00 GMT) on 2 December, after a series of ups and downs that kept the bulls on their best behaviour.
Leaving the technicalities aside, one reason for the bullion’s recovery is the emphasis on the second economic stimulus advanced by President-elect Joe Biden.
WTI crude oil futures for January slipped 8% to $44.47 in early trade on 2 December, as OPEC+ tabled the deal to increase oil supply by 1.9 million barrels. Although at their Monday meeting, OPEC and most of its partners agreed to defer the initiative until January, the UAE pushed back, arguing that stringent conditions be in place, World Oil notes.
On the brighter side, oil prices appear to have stabilized amid continued OPEC+ diplomatic discussions. Brent crude February contracts were seen steady at $47.38.
However, analysts like the FGE argue that the current bullish tendency seen in oil prices is not sustainable. According to an FGE report, if OPEC+ fails to increase the output by next year, oil prices will surge early in 2021 and then lead to a very bearish market later in the year. Will it or won’t it be so? Check-in regularly to stay in the know.
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