Weekly recap 11-15 January 2021

USA

A small correction in the stock market was somewhat expected this week, with the political consequences of the American Capitol’s invasion elevating tensions and leaving investors on their backfoot. After deeming President Trump as one of the main influencers in making this happen, Twitter and Facebook announced they will ban Donald Trump’s accounts from their websites.

This political tension was the main motivator for investors this week, especially after things were set in motion for the second impeachment of President Trump, something unprecedented.

This past Thursday, the future President Biden announced a new fiscal stimulus package of 1.9 trillion dollars. All there’s left to know is that if it will be approved in the Senate.

Also in the past week, Federal Reserve Chairman Jerome Powell, announced that they will not be a rate hike until inflation floats above 2% for some time, which will not be happening anytime soon.

Europe

In Europe’s case, this small stock market tumble was mainly motivated by the increase in COVID-19 cases all around Europe. Most European Governments are still ramping up the expanse of their quarantine measures, which makes sense when we take into account an increasing number of hospitals are reaching their full capacity.

The European political situation is also facing some turmoil. In Italy, the coalition in power lost its majority, and if in the near future they’re not able to form a new one, Italy might need to have a new general election. The Netherlands is also facing a problem, with a subsidies scandal, which led to the government resigning and a new election is scheduled to be held in March.

Asia

Japan’s economy is showing signs of decent improvement, although there’s been a growing number of COVID-19 and an increase in restrictions. Most of Japan’s regions are meeting their forecasted economic goals, and thanks to more generous lending policies, there has been a decrease in bankruptcies.

China also saw an improvement in its economy, with an increase in exports and other economic factors, however, some companies like Xiaomi saw their stock value drop due to being black-listed by the American Government.

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