Markets were slightly exposed to risk on Monday as investors weighed in on strong economic data from China, stimulus plans by President-elect Joe Biden and growing trends in coronavirus.
Carrefour SA was down 5.8%, leading to the lowest Stoxx 600 in Europe, after Canadian company Alimentation Couche-Tard Inc. abandoned talks on a $ 20 billion merger. The dollar ticked more, oil prices were weaker, and futures on US equities fell.
Asian chip stocks and Huawei Technologies Co. suppliers fell after Reuters reported that the US intends to revoke its licenses to work with the Chinese company. In Seoul, Samsung Electronics Co. decreased by 3.4%.
“Markets needed a breather or even a retreat to justify reflective expectations,” said Ben Emons, CEO of global macro strategy at Medley Global. councilors.
Global stocks fell last week after optimism about the US $ 1.9 trillion aid package, and the so-called rebate trade, fell over a holiday weekend. US financial markets are closed on Monday for the Martin Luther King holiday.
Meanwhile, Janet Yellen is expected to assert US commitment to market-driven exchange rates and provide assurances that the US will not look for a weaker currency for competitive trading advantages, the Wall Street Journal reported, citing familiar Biden transition officials in preparation for her confirmation hearing as secretary of the treasury.
On the coronavirus front, cases exceeded 95 million, while the number of US deaths in Covid-19 was close to 400,000. Norway has expressed growing concern about the safety of the Pfizer Inc. vaccine. in elderly people with severe health conditions that are the basis after the deaths of 29 people who received vaccinations.
Jun Bei Liu, portfolio manager at Tribeca Investment Partners, discusses his prospects for the markets in 2021.
Here are some key events that will appear next week:
- US stock and bond markets are closed Monday for the Martin Luther King Jr. holiday.
- Earnings come from companies such as Bank of America, Morgan Stanley, Procter & Gamble, Intel and Netflix.
- Joe Biden takes over as president on Wednesday.
- Policy decisions are expected Wednesday from central banks in Brazil, Malaysia and Canada. The Bank of Japan and the ECB make decisions on Thursday.
Here are the main movements in the markets:
Inventories
- S&P 500 futures fell 0.2% from 9:01 a.m. London time.
- The Stoxx Europe 600 index fell 0.2%.
- The MSCI Asia Pacific Index fell 0.4%.
- The MSCI Emerging Market Index fell 0.2%.
currencies
- The Bloomberg Dollar Spot index rose 0.3% to 1,129.08.
- The euro fell 0.1% to $ 1.2071.
- The pound fell 0.5% to $ 1.3527.
- The Japanese yen was up 0.1% to $ 103.78.
BONDS
- Germany’s 10-year yield fell one basis point to -0.55%.
- The 10-year British yield fell by one basis point to 0.28%.
commodities
- West Texas Intermediate Oil fell 0.3% to $ 52.22 a barrel.
- Gold strengthened 0.3% to $ 1,833.63 an ounce.
– With the assistance of Cormac Mullen