Daily summary: Global stocks lower as investors digest stimulus

• Political Uncertainty weigh on European stocks

• Pfizer (PFE.US)to temporarily slow vaccine deliveries

• Joe Biden unveiled the details of a $ 1.9 trillion coronavirus rescue package

European finished the final session of the week lower after Pfizer (PFE.US) announced it will reduce deliveries of its Covid-19 vaccine over the next three to four weeks in order to upgrade a key facility and boost production across the remainder of 2021.  Also political concerns weighed on market sentiment. Dutch Prime Minister Mark Rutte's government announced it was stepping down over a child benefits scandal; Chancellor Merkel's CDU party prepared to vote on Saturday for a new leader that will likely be a contender for next Chancellor; and Italian Prime Minister Conte is set to face a confidence vote on Monday, after former PM Renzi pulled his party from the government's coalition. DAX 30 fell 1.6%, CAC40 lost1.5% and FTSE100 finished nearly 1% lower.

US indices are trading lower after President-elect Joe Biden announced details of a $1.9 trillion stimulus plan and major banks released their quarterly results, kicking off the earnings reporting season. Dow Jones dropped 0.4%,  S&P 500 fell 0.5% Nasdaq lost 0.3%. The bill proposal includes extra $1,400 checks for most Americans, a temporary boost in unemployment benefits, and a rise in the federal minimum wage to $15 per hour. However investors remained concerned about its passage in Congress. Meanwhile, JPMorgan, PNC, Wells Fargo and Citigroup stocks fell despite upbeat quarterly figures. On the data front, retail sales unexpectedly fell for the 3rd straight month and producer prices rose less than expected. The University of Michigan's consumer sentiment dropped to 79.2 in January 2021, from the previous month's 80.7 and below market expectations of 80, a preliminary estimate showed.

Start investing today or test a free demo

Create account Try a demo Download mobile app Download mobile app

US crude futures are trading 2.40% lower at $52.27 per barrel, while Brent contract fell 2.3% below $ 55.00 per barrel as the imposition of fresh lockdowns in Europe and China clouded the outlook on fuel demand recovery.  Elsewhere, gold futures fell 0.80% at $ 1,832.00 / oz, while silver is trading nearly 3.0% lower near $ 24.78 / oz. Bitcoin dropped below $ 36,000 level.

Bitcoin failed to uphold bullish momentum and price broke below 50 SMA (green line) and is currently testing the lower limit of the triangle formation.  If sellers will manage to finish the session below it, then downward move could be extended to the  $30,360 handle. 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.