Morning wrap (21.01.2021)

• US indices booked strong gains yesterday and closed at record highs. S&P 500 gained 1.39%, Dow Jones added 0.83% and Nasdaq rallied 1.97%. Russell 2000 gained 0.44%

• Stocks in Asia are traded higher. Nikkei gained 0.8%, Kospi added 1.5% and S&P/ASX 200 finished 0.8% higher

• DAX futures point to a slightly higher opening of the European session

• Bank of Japan left interest rates unchanged and repeated that it is ready to act if necessary

• Some Republicans in Senate said they are not keen on passing another stimulus bill in the near future

• Biden signed executive orders on rejoining Paris climate accord, mask mandate, ceasing funding for US-Mexico wall and revoking permit for US-Canadian oil pipeline

• Italy has passed law allowing €32 billions of extra spending

• API data showed a 2.56 million barrel increase in oil inventories (exp. -0.3mb)

• Australian unemployment rate dropped to 6.6% in December (exp. 6.7%)

• Japanese exports increased 2% YoY (exp. 2.4% YoY) while imports were 11.6% YoY lower (exp. -14% YoY). Data for December

• Bitcoin trades slightly below $34,500

• Precious metals trade higher with platinum being an exception. Oil and agricultural commodities gain

• NZD and GBP are the best performing major currencies while USD and CHF lag the most

Slightly over 670 thousand new coronavirus cases were reported yesterday. Source: worldometers, XTB