The stock market has set new records in anticipation of budget spending. The dollar index continues to decline

On Wednesday, Joe Biden's statements didn’t bring any special surprises to the market. Nevertheless, promises of additional injections into the US economy continue to put bullish pressure on the market. European equities increased by about 0.7%, with cyclical stocks leading the way, including the automotive and banking sectors. S&P 500 futures rose the most, showing the best performance since 1937. The Nasdaq 100 contracts jumped to 2%.

On Thursday, the MSCI World Index hit an intraday high as investors eagerly await more economic investment, in spite of the fact that several Republican senators are already hinting at opposing such a package. Plans to stimulate the economy in Europe will be discussed today at the ECB meeting.

On Wednesday, a meeting of the Bank of Canada took place, which left the policy unchanged. The statement states that additional steps to stimulate the economy aren’t considered, and there will be no reduction in the volume of bond purchases until economic growth enters an active phase. The monetary regulator expects the Inflationary pressure to be moderate. In this regard, the Canadian dollar renewed its January highs.

The UK Treasury has announced a new package of measures to support workspaces. The program will be published on March 3. It is expected that workspaces will be saved during the quarantine, and workers will continue to receive salaries of up to 80%. Against this background, the sterling renewed its maximums and reached 1.3740. At the same time, the profitability of Gilts remained the same, and the difference against the American Treasuries was low.

Today there will be the results of the two-day ECB meeting at the end of the European session. There may be increased volatility in the market.

Main market quotes:

S&P 500 (F) 3,850.62 +5.62 (+0.15%)

Dow Jones 31,188.38 +257.86 (+0.83%)

DAX 13,965.70 +44.33 (+0.32%)

FTSE 100 6,743.05 +2.66 (+0.04%)

• – Employment Change in Australia (Dec) at 03:30 (GMT+2);
• – Bank of Japan (BoJ) Monetary Policy Statement;
• – ECB Interest Rate Decision (Jan) at 15:45 (GMT+2);
• – US Initial Jobless Claims at 16:30 (GMT+2);
• – ECB press conference at 16:30 (GMT+2).

by JustMarkets, 2021.01.21

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.