FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1724
BTC/USD
42 303.99
GBP/USD
1.3654
USD/JPY
109.5515
USD/CHF
0.9242
USD/CAD
1.2784
EUR/JPY
128.4327

Another record high for US stocks?


4 December 2020

Risk assets are looking to end the week, and the year, on a high. US stock futures are edging into the green, indicating the S&P 500 and the Nasdaq 100 could yet claim one more new record high before the weekend. However, Asian stocks are now mixed, with Japan’s Nikkei 225 and China’s stock benchmarks dipping into the red.

Risk appetite is being supported by the imminent rollout of the Covid-19 vaccine. The UK and Russia are expected to roll out their respective vaccines next week, while the US Food and Drug Administration are expected to approve Pfizer’s vaccine on 10 December. As the global population embarks on its journey towards Covid-19 immunity, that should also help the world economy get back on its feet.

US jobs report to show waning recovery


While the health response to the pandemic is taking positive strides, major economies such as the US and EU are still limping. Although those on Wall Street might be having the time of their lives, with equity gauges posting new record highs, many on Main Street can only hobble along due to the pandemic’s impact on the real economy. Despite the euphoria seen in global financial markets, today’s US non-farm payrolls report may serve as yet another sobering reminder of the fact.

The November US jobs print is expected to register a sub-500k reading, which would be its lowest since US states began easing lockdown measures in April. The recovery is clearly petering out, as the number of Americans heading back to work thins, with the unemployment rate still about double that of pre-pandemic levels.

The US economy clearly needs more fiscal support, and the sooner the better. Markets are still clinging on to the hope that a fresh round of US fiscal stimulus is in the making, as the voices from within Congress continue singing that same hopeful refrain, propping up the elation in equity markets.

Enough reasons to remain risk-on


While we wait, risk assets have enough going for them for the time being. Besides positive vaccine developments that promise to aid the global economic recovery, major central banks are not shying away from rolling out more monetary policy support for their respective economies, with potentially more to be announced by the Fed and ECB this month.

Brent flirts with $50 on OPEC+ deal


Oil markets are also finding cause for celebration, with OPEC+ agreeing to taper its output cuts starting January, as opposed to restoring 1.9 million barrels per day (bpd) as initially planned. The 500,000 bpd that’s due to be added next month is a more digestible bite-sized chunk for the global economy, which is still trying to get back on its feet since the pandemic. The Covid-19 vaccine is also expected to help the world expand its capacity to soak up the additional incoming supply, potentially helped further along by more fiscal stimulus for the likes of the US and the EU.

However, the vaccine and fiscal support may be less effective in helping consumers worldwide overcome the mental scars of Covid-19, which could prove to be a stubborn obstacle in restoring global demand truly to pre-pandemic levels. Also, with virus curbing measures either looming or being extended, from the state of California to Germany, the continued upward trajectory for Oil prices isn’t yet fully assured.

#source

Related

Gold's sudden glow in a falling market
Gold's sudden glow in a falling market

Gold's ability to resist the general downtrend speaks to investor confidence that global central bank policies will remain soft enough to avoid triggering a global downward asset sell-off spiral...

21 Sep 2021

Forex and Cryptocurrency Forecast for September 20-24, 2021
Forex and Cryptocurrency Forecast for September 20-24, 2021

The dollar continues to strengthen, and the EUR/USD pair moves south. Starting on Monday September 13 at 1.1810, it ends the five-day run at 1.1730. The movement...

20 Sep 2021

Gold and Silver looking into the abyss
Gold and Silver looking into the abyss

Strong US data revived bets on an imminent QE rollback from the Fed, supporting the dollar and causing bond yields to rise. The news triggered a more than 2% plunge in gold prices...

17 Sep 2021

Stocks pick up some bid after textbook SP 500 bounce
Stocks pick up some bid after textbook SP 500 bounce

European stock markets were modestly higher on Thursday after a rebound in the US and another dip for Asian equities overnight. Hong Kong down 1.7%...

16 Sep 2021

Stock Futures Trade Lower, Investors Worry About Fed Tapering
Stock Futures Trade Lower, Investors Worry About Fed Tapering

US and European futures are trading lower today, following a retracement in US indices. The Dow Jones Industrial Average fell nearly 290 points, wiping out gains...

15 Sep 2021

Futures in the United States and Europe are up today
Futures in the United States and Europe are up today

Futures in the United States and Europe are up today after the Dow managed to gain nearly 260 points and break its five-day losing streak. Although investors...

14 Sep 2021


Editors' Picks

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.