The three major stock market indexes went back to a rise, reaching new highs, with gains from companies like Netflix, Facebook, and Alphabet leading the charge.
What mainly helped this trend was the hope deposited in the new Biden Administration, which has as a big objective passing a stimulus bill of 900 billion to aid the economy in these trying times. Another big boost was the promise of vaccination of 100 million people in the first 100 days of Biden’s Presidency. This is quite an ambitious goal, especially considering the impact might be small due to new, and more infectious strains that might enter the USA.
Contrary to previous weeks, the European stock market did not follow the American market and saw a slight drop. Mainly due to the COVID-19 pandemic is causing much economic uncertainty.
COVID-19 is still the main cause of concern in Europe, with a majority of countries expanding their confinement measures. Some leaders are even refusing to set an end date for these measures due to the uncertainty of when there will some relief to the infection cases.
In Italy, Prime Minister Conte is currently trying to gather support to form a government, but if that doesn’t happen, the possibility of new elections becomes closer and closer.
The Bank of Japan meeting was held this past week, and the decision made was to keep the current strategy until inflation reaches the target inflation of 2%, which might take quite some time. On a positive note, exports in Japan rose for the first time in the past 2 years.
The Chinese stock market went back into a more positive tendency, thanks to the hope of the new Biden Administration. Hopes that the new Administration will ease off the measures of the previous one and find a more diplomatic solution to resolve their differences.
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