- European equities recover from rout
- US Congress has agreed on a $900 billion coronavirus-aid bill
- Apple (AAPL.US) is planning to launch a self-driving car on the mass market
European indices rebounded today, helped by better-than-expected consumer confidence data from Germany. Also BioNTech expressed confidence that its Covid-19 vaccine will be effective against the new strain founded in the UK. Also many experts, including those from the World Health Organization, believe that the coronavirus vaccines from Pfizer and Moderna would likely be effective against the new variant and that Covid was mutating at a slower pace than the seasonal flu. Meanwhile traders continued to follow post-Brexit trade negotiations. The UK government delivered a major counter-offer on fisheries in order to break negotiations deadlock, raising hopes of a deal before Christmas. Also Britain waits for France to reopen trade routes after the imposed ban on passengers and freight from the UK caused disruption at the key southern British port of Dover. DAX 30 rose 1.3%, CAC gained 1.4% and FTSE 100 finished 0.6% higher.
US indexes dipped in choppy trade, despite the US Congress's passage of an $892 billion coronavirus aid package. Congress also passed $1.4 trillion government funding avoiding a shutdown. President Donald Trump is expected to sign it in the coming days. Treasury Secretary Steven Mnuchin announced yesterday that Americans could receive their stimulus checks in a matter of days. Some investors believe that the fiscal stimulus had already been priced into US equities, while others consider the package underwhelming. Also economic data weighed on market sentiment. Final Q3 GDP reading was revised slightly higher, however US consumer confidence fell for the second straight month in December and missed expectations. On the corporate front, Apple Inc (AAPL.US) stock rose nearly 4.0% in early trading after Reuters reported that the company was moving forward with self-driving car technology and was targeting 2024 to produce a passenger vehicle that could include its own breakthrough battery technology.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appUS crude futures are trading 1.40% lower at $ 47.06 a barrel, while Brent contract fell 1.5% to $ 50.14. Later in the session, the American Petroleum Institute will report its weekly assessment of U.S. oil inventories. Elsewhere, gold futures fell 0.5% to $ 1,866.00 /oz, while silver is trading 3.18% lower near $25.33/oz.
Gold is trading lower today, however sellers again failed to break below the support at $1858.67/oz which coincides with 50 SMA (green line) and 200 SMA (red line). As long as the price sits above it, the upward move towards recent highs around $1900/oz is possible. On the other hand, should the price break below the aforementioned support, declines could deepen. In such a scenario, support at $1847.00 and $1820/oz could be the targets for market bears. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
