President Donald Trump has criticized the $ 900 billion omnibus bill and made a thin, covert threat of not signing it. It could form a nightmare before Christmas for struggling Americans, as well as for Trump’s Republican colleagues, described as being thrown under the bus by his late Tuesday video message. But so far, markets look ready to shake it off on Wednesday.
Investors may be tightened by a week that has brought new nerves to the COVID-19 front, while the long holiday weekend draws attention. But, really, it has to take stock of the growing risks, says ours call of the day from a Jefferies team led by their global stock strategist Sean Darby.
See: Is the scholarship open on Christmas Eve? Here is the holiday and New Year trading schedule
“In an almost exact resumption at the end of last year, our risk indicators began to ignite euphoria, with a feeling that was too unimportant,” Darby told clients in a note on Wednesday. “Apart from a short crowded position on the dollar, there are a few other catalysts for a correction in stock prices.”
Such as the company’s earnings that continue to be revised, negative real interest rates and “perky” inflation expectations. Another important issue is Georgia’s January election, which will decide which party controls the Senate, he said.
Regarding those signs of “euphoria”, the team led by Darby indicates investor information surveys that have shown a persistently high prevalence of bulls – over 60% for four weeks. Above this level it may indicate an excessive climb.
There is also the largest number of S&P 500 SPX,
the shares are trading above the 200-day moving average of 2013, a sharp higher move in Jefferies’ own sentiment index and year-to-day highs for its global risk appetite index.
Jefferies, FactSet
Bloomberg, Jefferies
“Moreover, the spread between risky and safe asset inflows has been in positive territory for one of the longest periods of 2017,” said the Darby team.
But, hey, maybe it’s nothing.
markets
YM00 futures,
ES00,
NQ00,
moving higher, while European stocks SXXP,
they also pushed north. Asian markets have been largely positive overall. The pressure remains on oil, which is under pressure amid reports of an increase in oil supplies.
Read: When are the Christmas and New Year markets open?
Buzz
This is followed by pre-holiday data storage, with weekly and ongoing complaints from the unemployed, durable goods orders and reports on personal income and consumer spending. There are also sales indices for new homes and consumer opinion indicators.
Trump sent his request on Twitter for significant changes to the $ 900 billion negotiated stimulus bill, suggesting he might not sign it. He wants “ridiculously low” payments to Americans to increase from $ 600 to $ 2,000 and what he described as a waste of legislation. That’s with many Republicans who oppose any direct controls on taxpayers, worried about the fate of Georgia’s GOP holders in those January 5 leaks that apparently moved the needle.
The US government is approaching an agreement for tens of millions of additional doses of COVID-19 vaccine from Pfizer PFE,
and German partner BioNTech BNTX,
Tesla CEO Elon Musk claims that in the “darkest days” of the company, he looked for a purchase from Apple CEO Tim Cook, but could not even get a meeting. This is based on Apple AAPL reports,
plans a rival electric car.
France will allow thousands of trucks in the UK, blocked by fears of a more contagious coronavirus strain, to enter the country, easing fears of a lack of holiday food. Drivers need proof of a negative virus test, with the same rules for other passengers in the UK. Trucks and police collided amid delays due to the huge delay:
Chart
The year of the pandemic that was. Michael O’Rourke, chief market strategist at JonesTrading, completed the big data points and asset changes we saw in one year.
JonesTrading
Random readings
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