China stocks at 13-year high

GURU WISDOM

“I owe my success to having listened respectfully to the very best advice, and then going away and doing the exact opposite.” – G.K. Chesterton
 

MARKETS

*Daily closing price
↗ EUR/USD    1.2206        (+0.47%)
↗ GBP/USD    1.3664        (+1.11%)
↘ USD/JPY    103.75        (-0.47%)
↗ S&P 500    3801.19    (+0.04%)
↗ Hang Seng    28,276.75    (+1.32%)
↗ Gold        1855.43    (+0.65%)
↗ Oil (Brent)    56.69        (+1.85%)
↘ Bitcoin    34,445        (-2.91%)
 

NEWS

GBP/USD pop

Sterling was a top FX riser on Tuesday as the dollar rally of the last three days came to an end. Markets switched back to assets that stand to gain from the vaccine rollout and a global growth recovery. Negative interest rate fears had seen Sterling drop further than most amid the dollar rally but it snapped back more than most in the recovery.
 

Trump impeachment

Democrats apparently have enough votes for a second impeachment of President Trump on Wednesday. A Senate trial would happen after Trump has left office and there are rumours that some Republican Senators could support the motion, possibly with the approval of Senate leader Mitch McConnell. Two third of Senators would need to support the motion for Trump to be impeached.
 

Shanghai stocks

Stocks in mainland China jumped on Tuesday led by gains in financial stocks. The CSI 300 hit a 13-year high while the Shanghai Composite reached its highest in 5 years. Higher yields are pushing up bank stocks supported by optimism about better bilateral relations with the United States under President Joe Biden.
 

Oil inventories

A surprise 5-million-barrel draw in weekly API oil inventories helped push the price of oil to its highest in 11 months. Goldman Sachs have lifted their end-of-year Brent crude forecast to $65 per barrel on expectations of improved international jet fuel demand.
 

DAY AHEAD 

*Times in GMT
N/A - Trump Impeachment
09:00 - ECB's President Lagarde speech
13:30 – US Consumer Price Index (YoY)(Dec) [1.3% Exp vs. 1.2% Prev]
19:00 - Fed's Beige Book