The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations.
USD/JPY edges higher as risk appetite improves
2021-02-08 • Updated
Ichimoku Kinko Hyo
AUD/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
XAG/USD: Silver continues to stand above the 61.8% retracement area. Bears seem to lose control of the trend.
EU Market View
Asian equity markets were mostly higher and US equity futures resumed last Friday’s advances on Wall Street. Asian shares hovered near record highs on Monday while oil surpassed $60 a barrel on hopes a $1.9 trillion Covid-19 aid package will be passed by US lawmakers as soon as this month just as coronavirus vaccines are being rolled out globally. Global equity markets have scaled record highs in recent days on hopes for a faster economic revival led by successful vaccine rollouts and expectations of a large US pandemic relief package. US President Joe Biden’s push for his $1.9 trillion Covid-19 relief package gained momentum on Friday after the US Senate narrowly approved a budget blueprint allowing Democrats to push the legislation through Congress in coming weeks with or without Republican support.
Republicans have proposed a $600 billion aid package, less than a third the size of the Democratic plan. On Friday, the Nasdaq and S&P 500 hit all-time highs on stronger than expected corporate results in the fourth quarter, and as companies were on track to post earnings growth for the first quarter instead of a decline. The rallies came even as US data painted a dour picture of the country's labor market with payrolls rising by 49 000, half of what economists were expecting.
US President Biden does not think his proposal for raising the minimum wage to USD 15 will survive negotiations. Looking ahead, highlights from the macroeconomic calendar include Eurozone Sentix, ECB's Lagarde, and Fed's Mester speech.
EU Key Point
- Germany reports 4 535 new coronavirus cases, 158 deaths in the latest update today.
- Nikkei hits a 30-year high.
- The case for CAD highlights labor force participation and BOC tapering.
- The US unveils child benefits as part of the $1.9 trillion stimulus package on Monday.
- Yellen supports that the US could reach full employment next year with a $1.9T stimulus package.
The previous year 2022, was undoubtedly tumultuous for the stock markets, with several stocks plummeting across multiple industries. Analysts have blamed the hard times on inflation, hawkish federal reserve policies, an impending global recession, and the ongoing crisis in Ukraine. This year, however, we're beginning to see some recovery in the stock markets. This article will find a few stocks worth buying this year.
The Netflix stock (NFLX), with a market cap of $145.17B and a whooping 10 000+% rise since its inception 16 years ago, experienced some turbulence for a short period last year while trading around the $250 share price. However, the NFLX stock quickly recovered and rose to over $300 towards the end of the previous quarter of 2022.
Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.