Yazar: Geoffrey Smith
Investing.com – With national infection rates, hospital admissions hit their lowest in several weeks, while California is poised to lift stay-at-home orders. As Donald Trump’s second impeachment investigation reaches the Senate, President Joe Biden will continue Trump’s “America First” policy. China’s retail investors burst a bubble, and a competitor of TikTok is planning an initial IPO in Hong Kong for $ 5 billion.
Here’s what you need to know in financial markets on Monday, January 25th.
1. California to remove quarantine as case numbers drop
According to the LA Times and other reports, California Governor Gavin Newsom is expected to abolish stay-at-home orders in the state. Thus, open-air dining and services of restaurants and sports halls in many districts will be opened again.
The seven-day average of new Covid-19 infections across the country dropped to its lowest level since early December, while the number of hospital admissions saw the lowest level in six weeks.
Outbreak news from other regions is not so bright: France, which has already imposed a 12-hour curfew, may enter full quarantine again this week, according to the government approved on Monday. England is considering squeezing its borders further. Mexican President Andres Manuel Lopez Obrador became the last world leader to test positive for Covid-19.
2. Biden’s “Buy American” order
President Joe Biden is expected to sign a new “Buy American” order. Thus, although a radical change in sentiment is expected according to the Donald Trump administration, the continuity of the US trade policy will be underlined.
According to the Wall Street Journal, these policies will include tightening government procurement rules to make it difficult for government agencies to purchase imported goods, and the definition of American-made products will be revised by increasing local content requirements.
As the House of Representatives sends clauses on Donald Trump’s second dismissal, likely to the Senate on Monday, Biden’s political initiatives will continue to compete for attention. Some think the new dismissal case will make it difficult for Biden to obtain bipartisan approval for the $ 1.9 trillion stimulus package.
3. Stock markets will open higher; Dallas and Chicago Fed polls on the way
Based on the good news about the epidemic and the expansionary state of US fiscal and monetary policy, US stock markets will open high with confidence in constant high liquidity. The policy situation is expected to be reaffirmed by the policy meeting on Wednesday.
The Nasdaq rose by 8 points, 0.3% and 1.0%, especially with the support of continued enthusiasm for semiconductor stocks.
Kimberly-Clark is the only notable name to report today. Chicago and Dallas Fed regional polls will also be shared today.
4. Balloons in China
The madness of retail investors is bloody and high, and not just in the US. Tencent shares in Hong Kong surged 10% on a move driven by retail action in the futures and options market.
There were no apparent triggers, but concerns have subsided over Beijing’s attitude towards the extremely wealthy and influential tech giants in China since Alibaba founder Jack Ma made his public debut last week last week. Tencent is now up 30% in two weeks, adding $ 230 billion to its market value in the process.
Balloon energy also came into force when short-format video company Kuaishou Technology announced that it has raised $ 5 billion and began marketing an IPO that it hopes will value the company over $ 60 billion.
5.Oil gains momentum again, despite quarantine concerns in China
After last week’s sales, crude oil prices gained some momentum again. It rose 0.8% to $ 52.67, while Brent rose 0.5% to $ 55.55.
Given the quarantines in various regions (the city of Tonghua on the border with North Korea reportedly said it has suffered from food shortages since it was quarantined five days ago), fears remain that Chinese demand will suffer.
Market positioning seems less tense after CFTC data showed that net long positions in futures have dropped to their lowest level since November.