US equities will start the new year in a positive way, after a volatile 2020 ended at a new high.
Investors seem to be shaking off the weakening COVID-19 picture again, but rather focusing on rolling out vaccines around the world. According to the COVID-19 detection project, US hospitalizations reached a record 125,544 on Sunday, while the UK has now recorded 50,000 new cases for six consecutive days, with stricter restrictions to be announced.
However, the UK on Monday began rolling out the vaccine from the pharmaceutical company AstraZeneca and the University of Oxford, which boosted sentiment. The FTSE 100 UKX,
started up and increased by 2.5% as higher metal prices GC00,
HG00,
SI00,
helped the mining sector.
After the end of 2020, with a record high for the Dow and S&P 500, the three major US stock indices rose on the first trading day of the new year.
In us call of the day, Ryan Detrick, chief market strategist at LPL Financial, said the strong year-end meeting in 2020 could ‘smile bulls’ in 2021.
The S&P 500 SPX,
rose more than 14% in November and December, ending a tumultuous year to a new high of 3,756.07, and rising by 16.3% in 2020. Detrick said a 10% or more gain in the last two months of the year to a higher S&P 500 the following year every time since World War II. ‘In fact, January was also higher every time, so this strong rally is perhaps a clue to higher prices [2021]. ”
At five times the index rose by more than 10% in November and December – 1954, 1962, 1970, 1985 and 1998 – the S&P 500 averaged more than 18% the following year. The index also climbed in all five January and rose by an average of 3%.
The graph below shows what a typical year looks like after a 10% or more November / December rally. “Once again, the historical book is a strong return,” Detrick added.
Source: LPL Research, FactSet
The markets
US futures contract YM00,
ES00,
NQ00,
showed higher early Monday with the Dow Jones Industrial Average DJIA,
set for a 150-point win at the open. European equities started the year on the forefront, driven by the introduction of vaccines across the continent. Asian markets also rose to start the new year amid global optimism. The US Dollar Index DXY,
decreased by 0.3% to 89.51 – the lowest level since April 2018.
The buzz
Democratic lawmakers on Sunday called for swift and serious action against President Donald Trump, after he was heard in a leaked tape and put Georgia’s Republican secretary of state under pressure to find more votes to stem his election loss in the state. .
The by-elections for two U.S. Senate seats in Georgia take place Tuesday, which will decide whether Democrats or Republicans control the Senate.
Industrial Conglomerate Teledyne Technologies TDY,
said he had agreed to buy Flir Systems FLIR, the thermal camera supplier,
in a cash-and-stock deal worth about $ 8 billion.
Shares of British gambling company Entain ENT,
formerly GVC Holdings, rose 26% on Monday after rejecting a proposed 1,383 pence per share from MGM Resorts MGM,
which the company valued at £ 8.09 billion ($ 11.06 billion).
Bitcoin BTCUSD,
rose to a record high of $ 34,000 over the weekend before falling 11% to $ 29,800 early Monday.
A British judge ruled on Monday that Julian Assange, the founder and publisher of WikiLeaks, should not be extradited to the United States.
Health Insurer Centene Corp. CNC,
said Monday he had agreed to Magellan Health Inc. To obtain MGLN,
for $ 95 per share, in an agreement with a business value of $ 2.2 billion.
Carl Icahn holds more than half of his stake in Herbalife Nutrition Ltd. HLF sales,
and relinquishes his seat on the board of directors of the nutritional supplement company, taking a step back from a years-long investment he fiercely defended against an onslaught from rival investor William Ackman.
Random reading
South Korea’s population is falling for the first time in its history.
Swan rescued after hours stuck on frozen loch.
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