The stock market indexes revealed a somewhat expressionless week, showing just a small rise at the end of the week. Even though the week started off with a feeling of fear due to the new and more infectious COVID-19 strain found in the UK, that feeling was subdued thanks to investors finding some tranquility in the fact that the USA made a new contract with Pfizer-BioNTech for more 100 million vaccines.
The feeling of dissent still prevails in the American government between Republicans and Democrats, where the biggest point of contention is the demand for a bigger direct payment to people in the next stimulus package. both the Democrats and, surprisingly so, President Trump would like to see an increase in the direct support from 600$ to 2000$. Unfortunately, as we said in a previous article, this will probably only be approved after Christmas.
In Europe, the stock market indexes performed a little better than those in the USA, probably thanks to the hope the European Union and the UK might finally reach an agreement on the Brexit terms.
Unfortunately, the discovery of a new and more infectious COVID-19 strain forced the UK to implement even stricter quarantine measures. Due to this discovery, many European countries decided to close their air borders to implement extremely strict measures to prevent the spread of this new strain.
Japan saw its currency appreciate against the American dollar, which prompted Prime Minister Suga to comment on the fact that a stronger yen would be undesirable, which hints at a possible intervention by the Finance Minister if this tendency continues.
However, China’s stock market continues to see some trouble thanks to the tension between the American government and China, especially after the USA published a list of 58 Chinese companies and 45 Russian ones, with ties to their respective military forces.
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