Stocks will enter the new year at a record high when the first trading day for 2021 begins Monday in Asia. The relentless rally of Bitcoin continues.
The S&P 500 index and the Dow Jones industrial average closed at 31 December at all times. Most markets around the world closed on January 1st. Bitcoin only reached a major milestone on Sunday. The dollar opened mixed against its G-10 counterparts when trading began in Sydney. The pound plunged as the UK faced a tighter closure to halt the coronavirus virus’ march.
China’s shares will be in focus as Chinese oil chiefs may be next in line to delist in the US, after the New York Stock Exchange said last week it would remove the Asian country’s three largest telecommunications companies. China’s benchmark CSI 300 index closed at a five-year high last week.
Equities begin the new year with a rich valuation amid expectations that the distribution of vaccines in 2021, central bank support and government assistance will fuel economic growth and increase corporate profits. The MSCI World Equities Index ended a record high after rising 14% last year.
Meanwhile, the madness in cryptocurrencies shows no signs of slowing down. Bitcoin rose by about 50% in December for the biggest monthly jump since May 2019.
OPEC warned of the risks to the oil market due to the emerging pandemic, a day before the group and its allies meet to consider another increase in production.
On the coronavirus front, U.S. vaccines are rapidly increasing after a slow onset and could be completely on track within a week or so, said Anthony Fauci, the country’s leading expert in infectious diseases. The cases in New York slow down a day after the state passed 1 million total infections. British Prime Minister Boris Johnson said stricter closure measures in England, including the closure of schools, were likely to be needed as cases of the new virus variant continued to increase.
What to look for this week:
- OPEC + energy alliance ministers hold their monthly virtual meeting to decide whether to add as many as 500,000 barrels a day to production.
- PMI of China Caixin manufactures Monday.
- In the US, the state of Georgia is holding a run-up election for two U.S. Senate seats that will determine control of the chamber.
- The U.S. Congress is meeting to count election votes and declare the winner of the 2020 presidential election Wednesday.
- FOMC postpones Wednesday.
- The U.S. Unemployment Report for December is due out Friday.
These are the main movements in markets:
Stocks
- The S&P 500 index rose 0.6% on Thursday.
- Nikkei 225 futures contracts have changed little in the past.
- The S & P / ASX 200 index futures contracts in Australia previously fell 1.2%.
- Hong Kong’s futures contracts in Hong Kong had previously fallen by 0.2%.
Currencies
- The yen was at 103.19 per dollar.
- The foreign yuan rose 0.1% to 6.4962 per dollar.
- The Bloomberg Dollar Spot Index rose 0.1% on Thursday.
- The euro rose 0.2% to $ 1.2240.
- The British pound slipped 0.1% to $ 1.3662.
Effects
- The yield on 10-year treasury fell one basis point to 0.91%.
Commodities
- West Texas Intermediate crude oil changed little at $ 48.52 a barrel.
- Gold was $ 1,898.67 per ounce.