Markets were slightly risky on Monday as investors weighed in on strong economic data from China, US President Joe Biden’s stimulus plans and rising coronavirus trends.
Carrefour SA plummeted 6%, lowering the European Stoxx 600 after Canadian Alimentation Couche-Tard Inc. talks about a $ 20 billion merger had broken down. The dollar tapped higher, while the S&P 500 futures changed little. The US financial markets were closed on Monday for Martin Luther King’s holiday.
In Asia, chip stocks and suppliers of Huawei Technologies Co. after Reuters reported that the US plans to revoke their licenses to cooperate with the Chinese company. In Seoul, Samsung Electronics Co. 3.4%.
“Markets needed a breather or even a retreat to justify the reflationary expectations,” said Ben Emons, director of global macro strategy at Medley Global. Advisors.
After a strong start to the year, global equity markets are losing steam as investors shift focus to the upcoming earnings season and the difficult negotiations facing Biden’s $ 1.9 trillion Covid-19 contingency plan. His proposals could be watered down under Congressional opposition, and there is the possibility that some taxes could rise.
A bright spot in the world economy remains China. The country’s economy roared back to pre-pandemic growth rates, with gross domestic product up 6.5% in the fourth quarter from a year earlier. That causes the world’s second-largest economy to drive global growth and potentially exceed US GDP faster than previously expected.
There were more than 95 million cases of the coronavirus, while the US death toll from Covid-19 was nearly 400,000. Norway has raised concerns about the safety of the Pfizer Inc. vaccine in elderly people with serious underlying health conditions after death in 29 people who received vaccinations.
Jun Bei Liu, portfolio manager at Tribeca Investment Partners, discusses her outlook for markets in 2021.
These are some important events in the coming week:
- The US stock and bond markets are closed Monday for Martin Luther King Jr.
- Revenue comes from companies such as Bank of America, Morgan Stanley, Procter & Gamble, Intel and Netflix.
- Joe Biden takes office as president of the US on Wednesday.
- Policy decisions will be made by central banks in Brazil, Malaysia and Canada on Wednesday. The Bank of Japan and the ECB will take decisions on Thursday.
These are the main movements in markets:
Shares
- Futures on the S&P 500 Index fell 0.1% as of 11:50 am London time.
- The Stoxx Europe 600 Index changed little%.
- The MSCI Asia Pacific Index fell 0.4%.
- The MSCI Emerging Market Index fell 0.2%.
Currencies
- The Bloomberg Dollar Spot Index climbed 0.2%.
- The euro fell 0.1% to $ 1.2071.
- The British pound fell 0.3% to $ 1.3548.
- The Japanese yen rose 0.1% to 103.78 per dollar.
Bonds
- The German 10-year yield fell by one basis point to -0.55%.
- The UK 10-year yield fell by one basis point to 0.28%.
Raw materials
- West Texas Intermediate crude oil fell 0.3% to $ 52.22 a barrel.
- Gold gained 0.3% to $ 1,833.63 an ounce.
– With the help of Cormac Mullen