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Political Uncertainty weigh on European stocks
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Pfizer (PFE.US)to temporarily slow vaccine deliveries
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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.
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Create account Try a demo Download mobile app Download mobile appUS 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
