The final week of the detested 2020 year ends with the three major American stock indexes reaching historic highs. Thanks to President Trump approving the 900 billion coronavirus relief bill, investors saw that as a good breath of fresh air for the future of the economy. Unfortunately, the demand to raise the direct payments to Americans from 600$ to 2000$, was just that, a demand. The demand was blocked by the Senate Majority Leader, Republican Mitch McConnel.
Another good news that improved market optimism was the continuation of the vaccination process. Especially in the UK where the use of the AstraZeneca vaccine was approved for emergency use and it’s expected the USA follow the same path.
European indexes replicated the American ones and rose, mostly driven by the approval of the USA relief bill and the greatly expected Brexit deal.
However, Europe is facing quite a troublesome situation, currently trying to slow down the rate of daily infections. This is especially considering the new COVID-19 strain is quite more infectious than the initial one.
On a better note, the European Union announced an investment treaty with China after 7 years of talks. This was announced as something that will be beneficial for both the European Union and China once it’s ratified.
This week’s economic data revealed that Japan’s output has somewhat stalled in November. This is obviously an unwelcome development for the Japanese Government, which might be forced to review its January forecasts in case December’s data disappoints.
The proposed government budget was approved, which includes measures and funds to improve the economic situation caused by COVID-19. Also, Prime Minister Suga is hoping it will improve public sentiment, considering elections are just around the corner.
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