German retail sales plunged far more than expected in December amid tighter lockdown measures
Wall Street indexed finished lower on Friday after AstraZeneca’s announcement it would supply the European Union with fewer than half the promised doses. Investors also were closely watching negotiations in Washington over President Joe Biden’s proposed $1.9 trillion economic aid package. As such, the S&P 500 dropped 1.93%, the Dow Jones Industrial Average fell 2.03% and the Nasdaq Composite lost 2%. On a monthly basis, the Dow lost 2%, the S&P 500 shed 1.1% and the Nasdaq Composite added 1.7%.Wall Street indexed finished lower on Friday after AstraZeneca’s announcement it would supply the European Union with fewer than half the promised doses. Investors also were closely watching negotiations in Washington over President Joe Biden’s proposed $1.9 trillion economic aid package. As such, the S&P 500 dropped 1.93%, the Dow Jones Industrial Average fell 2.03% and the Nasdaq Composite lost 2%. On a monthly basis, the Dow lost 2%, the S&P 500 shed 1.1% and the Nasdaq Composite added 1.7%.
Today in Asia, equities climbed higher as investor sentiment has improved at the start of the week and the month after AstraZeneca agreed to increase supplies to Europe. On the data front, China’s Caixin manufacturing PMI came in at 51.5 in January, having slowed to the lowest level since July 2020. Despite a weak report, the Shanghai Composite Index gained 0.64% during the session. Elsewhere, the Nikkei 225 in Tokyo gained 1.5% and the Hang Seng in Hong Kong advanced 2.5% while the Kospi in Seoul added 2.70%.
European stocks opened higher on Monday, with S&P 500 futures also trading up 0.8% to start the session after the drop seen last Friday. The pan-European Stoxx 600 climbed 1% in early trade. On the negative side, a group of 10 Republican senators urged President Joe Biden to consider a smaller, scaled-down Covid-19 relief proposal.
In currencies, the sentiment remains rather muted to start the week. EURUSD came under some pressure in Europe, with the 20-DMA continuing to act as resistance. A break below 1.2100 could bring a more aggressive sell-off surrounding the common currency in the short term. On the data front, German retail sales plunged far more than expected in December amid tighter lockdown measures to curb the spread of coronavirus. Later in the day, key manufacturing PMIs will set the tone for the major.
