The overall trend remains bullish amid the ongoing vaccine rollout and expectations of more economic stimulus
Coronavirus-related uncertainty pushed Wall Street stocks marginally lower overnight while the overall trend remained bullish amid the ongoing vaccine rollout and expectations of more economic stimulus. Of note, Senate Democratic leader Chuck Schumer said on Tuesday that Democrats will move forward on Biden’s relief plan without Republican support if necessary. As a result, the S&P 500 lost 0.15%, the Dow Jones Industrial Average while the tech-heavy Nasdaq Composite shed 0.07% each.
Today in Asia, stocks were mixed-to-higher despite the negative bias on Wall Street. On the positive side, the International Monetary Fund raised its outlook for global economic growth this year to 5.5% from 5.2% projected earlier. On the other hand, market players remained cautious ahead of the U.S. Federal Reserve’s monetary policy decision and fresh quarterly earnings due later in the day. As such, Tokyo’s Nikkei 225 index added 0.31%, while the Hang Seng in Hong Kong shed 0.32%. The Kospi in South Korea dipped by 0.57% while the Shanghai Composite index climbed 0.11%.
European equities opened lower to start the day amid a more tepid tone in US stocks reflecting the lingering investor uncertainty amid the ongoing coronavirus pandemic as global coronavirus virus infections have topped the 100 million mark. The World Economic Forum’s virtual meeting continues today and could bring some fresh drivers to the markets.
As for currencies, the greenback is little changed on Wednesday, with most pairs trading in tight ranges amid the lack of fresh catalysts. EURUSD remains capped by the 20-DMA that has been limiting bullish attempts for the fourth day in a row. The pair turned marginally lower on the day in recent trading following modest gains seen yesterday. In the immediate term, the common currency needs to hold above the 1.2100 figure in order to stay in a familiar range before deciding on the further direction.