- European stocks end slightly higher
- Focus turns to Biden's stimulus speech
- US weekly jobless claims jump to 5-month high
European bourses finished today's session slightly higher after data showed Germany's economy shrank by a smaller-than-expected 5% in 2020. At the same time, export data from Chaina raised optimism over a quicker economic recovery in 2021. Markets ignore the latest ECB minutes which showed, policymakers considered a smaller increase in emergency bond purchases last month and said that the PEPP envelope may not be used in full. DAX 30 rose 0.4%, CAC 40 gained 0.3% and FTSE 100 finished 0.8% higher.
US indices are trading higher as hopes regarding a big economic stimulus package overshadowed weak economic data and political turmoil. Dow Jones rose 0.3%, led by Boeing (BA.US) and Intel (INTC.US), while the S&P 500 rose 0.25%. Nasdaq Composite jumped 0.7%, hitting an all-time high. President-elect Joe Biden is expected to provide more details regarding the next economic stimulus plan 15 minutes past midnight GMT time. According to some source, he will present a stimulus package worth $2 trillion. Meanwhile investors digested weak jobless claims report. First-time claims for unemployment insurance jumped to 965,000 last week, well above market expectations. Meanwhile, President Donald Trump became the first president in U.S. history to be impeached twice by the House due to attacks on the Capitol last week. However, the Senate is not expected to have enough time to impeach President Trump before Joe Biden is inaugurated next week.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appUS crude futures are trading 0.30% higher at $53.00 per barrel, while Brent contract fell 0.15% below $ 56.00 per barrel. Elsewhere, gold futures rose 0.20$ to $ 1,847.00 / oz, while silver is trading nearly 2.0% higher near $ 25.60 / oz. Bitcoin is approaching $40,000 level.
Bitcoin is catching momentum after a recent drop to $30,360. The largest cryptocurrency broke above 50 SMA (green line) and is currently testing the upper limit of the triangle formation. A daily close above it may see Bitcoin explode to $40,000 and perhaps reach new record highs. On the downside, if the upswing becomes unsustainable, Bitcoin may retest the local support at $36,255. 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.
