Markets were slightly off-limits on Monday, with investors evaluating strong economic data from China, US President-elect Joe Biden’s stimulus plans and emerging coronavirus trends.
Carrefour SA fell 5.8%, causing Europe’s Stoxx 600 to fall, after Canadian Alimentation Couche-Tard Inc. abandoned negotiations on a $ 20 billion merger. The dollar has risen, oil prices have weakened and US stock futures have fallen.
Asian chip inventories and Huawei Technologies Co. suppliers fell after Reuters reported that the US is planning to revoke its licenses to work with the Chinese company. In Seoul, Samsung Electronics Co. fell 3.4%.
“Markets needed a break or even a pullback to justify reflective expectations,” said Ben Emons, managing director of global macro strategy at Medley Global Advisers.
Global equities fell last week after optimism about the $ 1.9 trillion US aid package and so-called reflex trade, faltered over a holiday weekend. The US financial markets are closed on Monday due to the holiday of Martin Luther King.
In the meantime, Janet Yellen is expected to affirm the US commitment to market-determined exchange rates and to provide assurances that the US will not seek a weaker currency to gain competitive trade advantages, the Wall Street Journal reported, citing government officials. transition Biden familiar with the preparation for her confirmation hearing as Secretary of the Treasury.
In front of the coronavirus, the cases exceeded 95 million, while the number of deaths in the United States from Covid-19 reached 400,000. Norway expressed growing concern about the safety of the Pfizer Inc. vaccine in elderly people with serious underlying health conditions after deaths in 29 people who received vaccines.
Jun Bei Liu, portfolio manager at Tribeca Investment Partners, discusses his outlook for markets in 2021.
These are some important events that will take place next week:
- The US stock and bond markets are closed on Monday due to the holiday of Martin Luther King Jr.
- The earnings come from companies like Bank of America, Morgan Stanley, Procter & Gamble, Intel and Netflix.
- Joe Biden takes over as president of the United States on Wednesday.
- Policy decisions are expected to be taken on Wednesday by central banks in Brazil, Malaysia and Canada. The Bank of Japan and the ECB deliver decisions on Thursday.
Here are the main movements in the markets:
Stocks
- Futures on the S&P 500 index fell 0.2% as of 9:01 am, London time.
- The Stoxx Europe 600 Index fell 0.2%.
- The MSCI Asia Pacific index decreased 0.4%.
- The MSCI Emerging Market Index fell 0.2%.
Coins
- The Bloomberg Dollar Spot Index was up 0.3% to 1,129.08.
- The euro fell 0.1% to $ 1.2071.
- The pound sterling decreased 0.5% to $ 1.3527.
- The Japanese yen strengthened 0.1% to 103.78 per dollar.
Titles
- Germany’s 10-year yield fell by a basis point to -0.55%.
- Britain’s 10-year yield fell by a basis point to 0.28%.
Commodities
- West Texas Intermediate crude fell 0.3% to $ 52.22 a barrel.
- Gold appreciated 0.3% to $ 1,833.63 an ounce.
– With the help of Cormac Mullen