Global markets rush over conflicting signals
Global markets sped up on Monday amid mixed news coming on the dance floor. U.S. indices closed mixed on Friday amid weak expectations for the adoption of a new economic aid package and expectations of approval of the coronavirus vaccine.
The U.S. Congress approved a temporary budget that, once signed by the president, will extend government funding for another week. This will give time to continue negotiations on the allocation of the new economic aid package needed because of the coronavirus pandemic.
Asian stock markets on Monday are rising within 0.6% of major indices after U.S. President Donald Trump announced that the Food and Drug Administration (FDA) has approved pfizer’s coronavirus vaccine for emergency use. He also assured Americans about the safety of Pfizer and Moderna vaccines. In addition, German Chancellor Angela Merkel also said that vaccination against coronavirus in the country and the European Union will begin a few days after the use of the vaccine, which may take place before the end of December.
European markets continue to decline as uncertainty between the EU and the UK is difficult to reach in trade agreements. The transition period after which the UK is due to leave the EU ends on 31 December and the parties must somehow agree on the future terms of their trade relationship. However, as market participants estimate, the likelihood of such contracts being missing by the end of the year is higher than their achievements.
Investors are currently waiting for the outcome of the meeting of the Bank of England and the Federal Reserve (Fed) of the United States. Market participants will pay attention to the Fed’s economic forecasts and regulators’ comments on the outlook for the economy in a coronavirus pandemic.