President-elect Joe Biden will disclose details of his stimulus plans. The extra stimulus is to further help the economy through the pandemic.
He has promised a sticker price “in the trillions of dollars”. That number supported equities and other risk assets for the last week.
People are expecting a proposal that will contain a boost to the recently authorized $600 direct payments to most Americans. It is an extension of increased unemployment insurance and support for state and local governments.
Signs that Biden will aim for bipartisan support imply that some elements of the plan may be trimmed. This is to appease Republican legislators.
More stimulus plans will imply higher federal borrowing. It will keep the onus on the Federal Reserve to step up as the biggest buyer of the new bonds. The bank’s Chairman Jerome Powell’s speech will be at 12:30 PM ET.
Biden’s announcement will come after what’s likely to be a further weakening in the labor market due to Covid-19. At 8:30 AM ET (1330 GMT), weekly data is to show a 795,000 increase in initial jobless claims.
Data from Destatis showed Germany’s economy shrank overnight, slightly less than expected in 2020. Albeit, it was still the biggest contraction since World War 2.
From 2019, gross domestic product fell 5.0%, better than the 5.2% anticipated. Updated German data have all tended to be revised upward. With that, the final outcome for Europe’s largest economy may be better than the one reported today.
U.S. stock markets are set to open slightly higher, but are likely to stay in modest ranges. This is pending Biden’s announcement as well as any reaction from Fed Chairman Powell.
U.S. 10-year Treasury yields ticked up to 1.11% overnight. That’s with 1.10% pivoting to be the new support level rather than a resistance level.
Dow Jones futures added 60 points, or 0.2% by 6:30 AM. S&P 500 futures were unchanged and NASDAQ Futures lost 0.3%.
Likely to be in focus later is electric car maker Tesla (NASDAQ:TSLA). It is being urged by regulators to make what would be one of its biggest safety recalls ever.
Due to report their fourth quarter earnings, are asset manager Blackrock (NYSE:BLK) and Delta Air Lines (NYSE:DAL).
In commodities news, the OPEC will release its monthly report on the outlook for the global crude oil market. It’s due at around 7:20 AM ET.
Key Points: Stable Above $0.50: XRP maintains price stability above $0.50, indicating investor confidence despite market volatility. Technical Breakthroughs: Recent…
Key Points The UK economy grew by 0.6% in Q1, surpassing expectations by beating forecasts of 0.4%. roduction rose by…
Key Points: Dow Jones gains for 7th day; It has risen by 0.85%, marking its longest gain streak since December.…
Key Points: Rising Oil Prices: Brent crude at $84.33/barrel and WTI crude at $79.26/barrel, a 2% weekly increase. Geopolitical Tensions:…
Key Points: EUR/GBP trades near 0.8600 with key support at 200-hour and 200-day EMAs. BoE held interest rates steady in…
Key Points: GBP/USD Rises to 1.2525 from 1.2445 amid expectations for economic announcements and shifts in UK and US monetary…
This website uses cookies.