This week, without any doubt, was very good to the stock markets, especially for Dow Jones hitting a record high. What brought this optimism was the good news, both politically and vaccine-wise. Politically, the Trump Administration finally initiated the transition process that somewhat relieved the markets. Also choosing Janet Yellen as the next Secretary of the Treasury brought some optimism to the markets, considering she’s already known for being the previous Federal Reserve’s Chairperson and being quite capable. When it comes to the vaccine, more pharmaceutical companies keep presenting their vaccines claiming quite high efficacy in preventing infection. Not only that, but a few countries are already extremely ready to start delivering the vaccine to their population.
Unfortunately, the Senate is at a standstill. The Republicans and Democrats can’t seem to reach an agreement when it comes to the fiscal stimulus. Although both parties seem to somewhat reach a future compromise due to some pressure from both Biden and Trump.
As always, the European stock market reflected the USA’s stock market. However, this reflection was somewhat less pronounced considering the European pandemic situation. Both Germany and the United Kingdom extended their quarantine measures in hope of reducing the number of infections the best they can, at least until the vaccines start being distributed.
Due to these constraints, which reduced consumption, Europe suffered a contraction in its industrial production. Equally, the service industry also suffered due to these quarantine measures.
Even though Japan saw a big rise in COVID-19 cases, reaching a historic high of 2500 cases in a single day, they saw a stock market growth thanks to good economic performance. Currently, the Japanese Government is trying to mitigate the spread by advising people to avoid travelling between cities. For now, the Government is only advising people, in hopes of not having to resort to a state of emergency.
In China there is very little to report, only a rise in their stock market being worthy of note.
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