Approach relief package passes support gold… a positive performance for US indices
Approach relief package passes support gold
Approach relief package passes support gold: a positive performance for US indices:
House Speaker Nancy Pelosi and Senate Democratic Majority Leader Chuck Schumer
presented a decision regarding a budget as the first step in the new budget approval process.
This ultimately could allow President Joe Biden’s $ 1.9 trillion stimulus package to be approved
by a simple majority without a need for Republican’s support.
This was the biggest event that moved markets at the start of today’s trading.
Evest is showing how this measure has reverberated markets.
Oil is at its highest level in a year
Today, Oil prices rose to hover near their highest levels in a year reached in the previous session,
amid signs of declining supply.
Brent North Sea
Brent North Sea crude futures were trading at a rate of $ 0.28 to record $ 57.74 a barrel
while US West Texas Intermediate crude oil rose by $ 0.24 to trade at $ 55 a barrel.
On Tuesday, Brent and WTI reached their highest standards to trade at $ 58.05 and $ 55.26 a barrel in a row.
These consider their highest levels since February and January of last year.
US oil prices exceeded $ 55 for the first time in a year.
Oil prices have increased by about 60% since November of last year.
OPEC+ support for production decrease agreement in addition to growing optimism regarding global oil demand support prices.
On other hand, the fiscal stimulus package expected from the US side is considered another factor to support oil.
At the start of February, oil prices were mainly supported by demand expectations and OPEC+ efforts to reduce production.
Therefore, in the United States of America, there is a slight improvement in the situation of Coronavirus “Covid-19” compared
to January as a number of OPEC+ countries including Saudi Arabia agreed to an additional production reduction in February and March.
American Petroleum Institute (API)
Data released by the American Petroleum Institute (API) on US reserves of last week does not provide more support for oil prices.
According to the Institute’s estimates of the week ending on January 29th,
oil inventories in the United States decreased by 4.3 million barrels.
During last week, the decline reached 9.9 million barrels.
This evening, it is assumed that the US Department of Energy will release its official statistics.
Experts expect an increase in stocks by 0.4 million barrels.
Gold is revived by stimulus hopes
On Wednesday, gold rose in Asia amid growing hopes for more US stimulus measures.
Gold futures registered a rise of 0.41% to trade at $ 1840.95 an ounce.
Democratic lawmakers in US Senate have begun debating the 2021 fiscal budget decision.
This is the first step towards passing the $ 1.9 trillion stimulus package proposed by President-elect Joe Biden.
This seems to be an indication that Democratic Majority may introduce Bill without the Republican’s support.
On another side, silver prices recovered after falling by more than 8% during the previous session.
In spite of the decline, investors were prompted to buy,
but the social media-driven rally that began last week seems to be faded.
On Monday, Silver prices jumped to $ 30.3. This is its highest point since February 2013.
The positive performance of most exchanges,
supported by corporate results that exceeded expectations
On Tuesday, Wall Street closed for a second session in green as speculative fever of small carriers
that destabilized the US market last week, faded.
US stock indices
US stock indices showed a clear increase and continued to recover from the strong drop of last week.
Market supported reports of some progress in fighting Coronavirus.
Investors also followed the company’s reports as well as news related to the progress
of negotiations on a package of new measures to support the US economy.
At the end of last week, according to US Centers for Disease Control and Prevention,
more than 26 million people had received at least one dose of the Covid-19 vaccine
and about 6 million had received 2 doses of Coronavirus vaccine.
At the same time, in the United States, the number of new cases of Coronavirus has decreased for 3 consecutive weeks.
This has not been observed since last September.
Dow Jones Industrial
Dow Jones Industrial Average rose by a rate of 1.57% to record 30,687.5 points.
Standard & Poor’s 500 Index also rose by 1.39% to reach 3,826.3 points.
High-tech Nasdaq Composite Index rose by 1.56% to record 13,612.8 points.
Tokyo Stock Exchange
On Wednesday, Tokyo Stock Exchange ended in a sharp rise after Wall Street’s strong close of the day before,
and with earnings season into full swing in Japan, as the performance of many companies exceeded expectations.
The main Nikkei index rose by 1% to record 28,646.50 points at the end of trading while the Topix index rose by 1.3% to trade at 1,871.09 points.
Investors in Japan also enjoyed the respect of a swift adoption of a new plan to support the US economy
after technical voting in the Senate on Tuesday to pave the way for fast-track parliamentary action.
Tokyo Market is also benefiting from the Yen decline against the Us dollar since the end of last week.
The decline in the curve of new cases of Coronavirus “Covid-19” in Japan is remarkable
Tokyo Stock Exchange
In addition, Tokyo Stock Exchange has been already in a positive position for several sessions to the rhythm of quarterly results
of large Japanese companies which are often better than expected such as those of Panasonic
which have been published on Tuesday,
besides those of Sony which have been revealed on Wednesday, immediately after close.
Panasonic shares gained 3.83% to record 1434.5 Yen.
On Tuesday, Electronic giant, supplier of electrical batteries to American Tesla significantly raised its forecast for 2020/21 results.
In particular, thanks to a return to third-quarter growth and cost savings.
As for Sony, its shares clearly closed in the green area as it rose by 1.62% to trade at 10.635 Yen
before publishing results of the third quarter of 2020/21 immediately after market close.
The group which launched the new PlayStation 5 video game console last November,
has significantly improved its forecast for the fiscal year 2020/21.
This has shown more optimism for all its departments,
particularly image sensors, electronic products, and its video games activities.
In China, growth in service activities significantly slowed in January.
Hong Kong’s Hang Seng Index slightly fell by 0.11%.
Composite indices in Shanghai and Shenzhen did the same.
Stock Exchange in Seoul rose by 0.7% while Sydney actually ended trading at a rate of 0.9% higher.