Shares will hit an all-time high in the new year as the first trading day for 2021 kicks off Monday in Asia. Bitcoin’s relentless rally continued.
The S&P 500 Index and the Dow Jones Industrial Average closed at a record high on December 31. Most markets around the world were closed on January 1. Bitcoin hit $ 34,000 on Sunday, just weeks after passing another major milestone. The dollar opened mixed against its G-10 counterparts when trading began in Sydney. The pound slumped as the UK faced a tighter lockdown to halt the advance of the coronavirus.
Chinese equities will be in the spotlight, as will Chinese oil companies next in line for delisting in the US after the New York Stock Exchange said last week it would remove the Asian nation’s three largest telecom companies. China’s benchmark CSI 300 Index closed at its five-year high last week.
Stocks are kicking off the new year with high valuations amid expectations that widespread distribution of vaccines in 2021, central bank backing and government support will revive economic growth and boost corporate earnings. The MSCI World Index of stocks ended at a record high after rising 14% last year.
Meanwhile, the rage in cryptocurrencies is showing no signs of slowing down. Bitcoin was up about 50% in December for the biggest monthly jump since May 2019.
OPEC warned of the risks to the oil market from the resurgent pandemic a day before the group and its allies meet to consider another increase in production.
As for the coronavirus, vaccine rollout in the US is accelerating after a slow start and could be fully on track in a week or so, said Anthony Fauci, the country’s top infectious disease expert. New York cases slowed a day after the state passed 1 million total infections. British Prime Minister Boris Johnson said stricter lockdown measures in England, including school closures, will likely be needed as cases of the new virus variant continue to increase.
What you can watch this week:
- The energy ministers of the OPEC + alliance hold their monthly virtual meeting on Monday to decide whether to add as much as 500,000 barrels per day to production.
- China Caixin manufactures PMI Monday.
- In the US, the state of Georgia is holding a second election on Tuesday for two US Senate seats that will decide control of the chamber.
- The U.S. Congress is meeting to count electoral votes and declare the winner of the 2020 presidential election on Wednesday.
- FOMC took out minutes on Wednesday.
- The US unemployment report for December will be released on Friday.
These are the main movements in markets:
Shares
- The S&P 500 Index rose 0.6% on Thursday.
- Nikkei 225 futures had changed little before.
- The Australian S & P / ASX 200 Index futures were previously down 1.2%.
- Hong Kong’s Hang Seng Index futures previously fell 0.2%.
Currencies
- The yen stood at 103.19 per dollar.
- The offshore yuan rose 0.1% to USD 6.4962.
- The Bloomberg Dollar Spot Index rose 0.1% on Thursday.
- The euro rose 0.2% to $ 1.2240.
- The British pound fell 0.1% to $ 1.3662.
Bonds
- The yield on 10-year Treasuries fell by one basis point to 0.91%.
Raw materials
- West Texas Intermediate crude oil had changed little at $ 48.52 a barrel.
- Gold was $ 1,898.67 an ounce.