Weekly recap 30-4 December

USA

For the second consecutive week, the stock market indexes kept going up, even reaching new record highs.

Among the most significant rises are the energy companies, mainly thanks to the influence of the decision that OPEC made. In this meeting, the biggest oil producers agreed to delay the production increase that was planned for 2021, so that the oil prices are kept under control.

Another factor that influenced the market and gave investors hope were signs from the American Senate. A new stimulus deal coming from the senate seems to be closer and closer, as signs of agreement between republicans and democrats are becoming clearer.

In the meanwhile, Federal Reserve Chairman publicly reinforced once again the need for the continuation of the lending program and a new fiscal stimulus.

Europe

The european stock market, once again, mirrored the american markets, even though, in a more shyly. Due to a higher attempt and slowing down the spread of COVID-19, economic indicators suffered a small hit, which in turns, leads investors to believe, ECB might release a new round of stimulus in the near future.

Furthermore, the European Commission is ready to jump of the hurdle that Hungary and Poland raised. They are ready to exclude Hungary and Poland from the emergency funds in case they decide to keep blocking the decision to pass the funds.

Unfortunately, Brexit negotiations keep dragging on, probably unsurprisingly so. The biggest debate point is still fishing rights, which will be debated in the next European summit. However, France is ready to veto the agreement in case the decision is not in their best interest.

In spite of the fact that the UK is going through political issues, both internal and external, they decided to speed up their vaccination plan and approved the emergency use of the Pfizer and BioNTech vaccines. Unfortunately Europe is still quite mixed in terms of quaratine measures, while some countries are relaxing their measures, like Italy were there’s a higher mobility and commerce control.

Asia

Japan is currently facing a small political turmoil. There might be a need for elections in the near future, due to deterioration of public opinion on the governement handling of the pandemic.

In China, although is has seen an improvement of their stock market, it’s currently facing a problem, USA’s restrictions. Currently the USA is restricting the invesment of american companies in chinese companies with ties to the chinese government. As a consequence some chinese company’s stock saw a significant drop this week.

Visit the  Disclaimer for more information.