- European stocks start the week lower
- US stocks swing between gains and losses
- Nasdaq and Russell 2000 both fell from new ATH
European indices finished the first session of the week lower after German business morale dropped to a six-month low in January as a second wave of COVID-19 slowed economic recovery. Also slow vaccination rollout and delays in vaccine supplies also weighed on sentiment. Both AstraZeneca and Pfizer confirmed that they will not be able to meet the targets for deliveries to Europe in the coming weeks. Travel and leisure stocks suffered the most after the US announced further restrictions due to a new strain of the virus. Meanwhile France considers introducing a third lockdown. DAX 30 fell 1.7%, CAC40 dropped 1.6% and FTSE 100 finished 0.8% lower.
US indices swing between slight losses and gains as the stimulus-fueled rally fades away amid surging coronavirus cases and a slower-than-expected COVID-19 vaccine rollout. The Dow Jones is trading 0.25% lower, the S&P 500 erased early gains and the Nasdaq reversed from record highs hit earlier in the session. Also doubts whether President Biden can push forwards with his massive $1.9 trillion emergency package weighed on sentiment. On the corporate side, Apple and Tesla were among the biggest gainers, both up almost 3%. This week, 13 Dow components and 111 S&P 500 companies will provide their quarterly earnings. Among which those from Apple, Microsoft, Netflix, Tesla, McDonald’s, Honeywell, Caterpillar and Boeing.
US crude futures are trading 0.50% higher around $52.50 per barrel, while Brent contract rose 0.45% below $ 55.60 per barrel. Iraq has agreed to voluntary production cuts to compensate for its over-production last year. The second-largest producer of OPEC will pump approximately 3.6 million barrels per day in January and February, below December’s 3.85 million barrels per day. Elsewhere, gold futures rose 0.20% to $ 1,856.00 / oz, while silver is trading flat around $ 25.40 / oz. Bitcoin is trading above $33,500 level.
USDJPY - pair has been stuck in a local sideways move recently. If break out above the trendline occurs then upward move could be extended to the 104.78 handle. On the other hand, a break below the support at 103.65 which coincides with 50 SMA (green line) could pave a way for a bigger decline. Next support lies at 103.18. Source: xStation5
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