fbpx

Markets rally after Trump ends stimulus standoff, Alibaba’s woes, GBP slides

Markets rally after Trump ends stimulus standoff, Alibaba's woes, GBP slides - MarketPulseMarketPulse

image

Home/Brexit/Central banks/COVID-19/News events/Newsfeed/US election

Share 0

Equities higher as Trump folds on veto threat

Stocks are off to a solid start after President Trump unexpectedly signed the USD900 billion stimulus bill and as the EU begins its mass vaccination program.  Trump may have started to feel the public pressure of preventing unemployment aid for Americans and averting a government shutdown. The unnecessary drama may have cost millions of Americans a week of unemployment aid and the reason is possibly so that the President could say he pushed for larger stimulus checks.  The Republican party now needs to respond to President Trump’s request, which is supported by Democrats, to provide Americans with USD2000 stimulus checks.  It seems unlikely that Congress will approve Trump’s demand for bigger checks and cuts for foreign aid.

Trading volumes are especially thin today as Australia, Canada, New Zealand are closed for Boxing Day.

With just over a week until the Georgia Senate runoff races, investors are still pricing in a V-shaped recovery thanks to the COVID-19 vaccine rollout, but a potential blue wave could accelerate the rotation into cyclicals.  The base case for Georgia is that Republicans will manage to win one of the races and keep control of the Senate.  The Biden administration’s chances of another economic relief package remain elevated as President Trump has moved the goalposts for Republicans.

Alibaba dropped for a second consecutive day on fears China’s regulatory crackdown is just beginning.  Last week, Alibaba shares were under pressure for a probe on monopolistic practices and now it looks like their finance affiliate, Ant group was told by China’s central bank to go back to focusing only on digital payments.  Alibaba also announced an increase to its stock buyback program of up to USD10 billion.

China could be making an example of Jack Ma, but this potentially politically based attack could really do harm to its growing tech industry.

The British pound has started the week in the red, as GBP/USD is down close to 1%. Brexit is finally done, but the devil is in the details and the UK’s trade deal is producing a scramble for businesses to adjust to new terms and conditions over a short period of time.  The economy will have some bumps and bruises as the economy battles COVID lockdowns and adjusts to new goods and service trade rules.  While punitive tariffs appear to have been avoided, fair competition could end up seeing the UK levied with proportionate tariffs.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geopolitical events and monetary policies around the world. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC and Bloomberg, and is often quoted in leading publications including the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University.

Original author: Ed Moya

Copyright

© MarketPulse

Oil and gold rise, Bitcoin rallies
Bitcoin is on the move – is 30K next?
 

By accepting you will be accessing a service provided by a third-party external to https://chatpips.com/

 
     
 

Broker Search

Latest Spot Rate

 
19 January 2021
Key risk events today: Limited. (Previous analysis as well as outside sources – italics). EUR/USD: Holiday-thinned liquidity witnessed narrow trading on Monday, despite shaking hands with H4 demand (green) at 1.2040-1.2064 and connecting 38.2% Fibona...
19 January 2021
SAN FRANCISCO and SUZHOU, China, Jan. 19, 2021 /PRNewswire/ -- Innovent Biologics, Inc. (Innovent) (HKEX: 01801), a world-class biopharmaceutical company that develops, manufactures and commercializes high-quality medicines for the treatment of cance...
19 January 2021
Canadian dollar dips on mixed data - MarketPulseMarketPulse Home/FX/Newsfeed Share 0 The Canadian dollar is down slightly in the Monday session. Currently, USD/CAD is trading at 1.2759, up 0.22% on the day. Short squeeze boosts US dollar The week end...
19 January 2021

19 January 2021
Aussie dips below 0.77 line - MarketPulseMarketPulse Home/Central banks/COVID-19/FX/News events/Newsfeed/Technical analysis Share 0 The Australian dollar has started the new trading week with slight losses. AUD/USD is currently trading at 0.7681, dow...
How It Works | About | Contact | Contributors | Privacy Policy | Advertise
© 2009 - 2021 ChatPips. All Rights Reserved. Terms of Use: The content on this website is solely for educational and informational purposes and is not a substitute for official documentation of the original owners. Daily economic news is provided by third-party website. This site is not operated by, sponsored by, endorsed by, or affiliated with any parties in any way. The website owner, the authors, the publishers, and all affiliates of ChatPips.com assume no responsibility or liability for your trading and investment results. You should always check and confirm with several sources with your licensed financial advisor and tax advisor to determine the suitability of any investment before making your final decision. Your continued usage and browsing of information on this website constitute your agreement to this Terms of Use. If you do not agree, please do not proceed to use this website. Brokers Directory: The companies license information were obtained from respective local jurisdiction. All other company and/or product names are trademarks and/or registered trademarks of their respective owners.