- 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.
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Open account Try 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
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