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US stocks opened flat, FOMC meeting in the spotlight
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US100 tests upward trendline
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Tilray and Aphria to merge into world's biggest cannabis company
In spite of some positive signals from politics, US indices opened today's trading more or less flat. Brexit talks are still ongoing with EU leaders saying that there is a path to a deal. More importantly, Politico reported that US lawmakers may agree on a $900 billion economic relief package that will include another round of direct payments. Decision could come as soon as today. However, investors should remember that there is a big event scheduled for the evening - FOMC decision. Rates announcement will come in at 7:00 pm GMT while Jerome Powell will hold a press conference at 7:30 pm GMT.
Source: xStation5
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Open real account TRY DEMO Download mobile app Download mobile appUS100 has given up part of the overnight gains during today's European session. The index halted upward move slightly below the all-time high in the 12,665 pts area. Index is trying to break below the upward trendline but a downward move was halted at the 78.6% retracement of recent correction. A break below the trendline could be worrying but as long as the index stays above the lower limit of the Overbalance structure at 12,515 pts. Until then, short-term outlook stays unchanged. Of course, today's FOMC decision will be key for indices, including US100. Optimistic forecasts could hint at smaller stimulus and looming rate hikes, what should have a negative impact on the equity markets.
Company News
A big merger in the cannabis sector is coming. Tilray (TLRY.US) and Aphria (APHA.US) announced that they will merge with Aphria shareholders receiving 0.8381 shares of Tilray for each Aphria share owned. Combined company will operate under the name Tilray and will be the biggest cannabis company in the world. Closing of the deal is expected in the second quarter of 2021. Both Tilray and Aphria are making double-digit gains today. Shares of other cannabis companies like Canopy Growth (CGC.US) or Cronos Group (CRON.US) are also trading higher on the news.
Amazon (AMZN.US) asked a US judge to revert the Pentagon's decision to award a $10 billion cloud contract to Microsoft (MSFT.US), a court filing revealed. Amazon argues that the decision to award the contract to Microsoft was politically biased.
According to New York Times, Pfizer (PFE.US) is in talks with the White House over a supply of additional coronavirus vaccine doses for the next year. Report says that White House may use its authority to force Pfizer's suppliers to prioritize it when it comes to materials supply.
Tilray (TLRY.US) jumped at the start of today's session following M&A news. Stock started the session at the highest level since November 9 but has pared part of the gains already. Share price is testing the price zone ranging between $9.25 handle and 50% retracement of recent correction. Source: xStation5
