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News & Analysis

Overnight on Wall Street: Wednesday 03 February 2021

3 February 2021

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By Lachlan Meakin

Equity markets

US Equity markets soared last night with strong corporate earnings, stimulus bill progress and promising progress on US COVID vaccination rates.

European markets trailed along posting strong gains and Australian and Asian markets are looking to open solidly in the green.

  • Dow Jones up 475 (1.57%)
  • NASDAQ up 209 (1.56%)
  • DAX up 213 (1.56%)
  • FTSE up +50 (0.78%)


Source: Google Finance

Corporate earning in the US continued their impressive beats of analyst estimates with tech heavyweights Alphabet (GOOG) and Amazon (AMZN) handily beating expectations.

 Stimulus talks have begun between the Biden administration and Republican senators which has given investors hope that a deal will be struck in the coming weeks, while it is

Simulus

The Biden administration and Republican senators have met this week to negotiate the passing of the relief bill before the Senate. While it seems unlikely the full 1.9T will be passed reportedly good progress is indicating a still hefty stimulus will be passed in the coming weeks.

COVID-19

US vaccinations have picked up pace with the US administering shots at a faster daily rate than any country in the world.

An important milestone was also passed this week with more Americans have received at least one dose of a Covid-19 vaccine than have tested positive for the virus.


Source: Bloomberg

FX markets 

Yesterdays RBA rate statement gave no surprises with the target rate with the RBA reaffirming the 0.1% cash rate and 3 year bond target would remain.

There was an unexpected announcement that the RBA planned to extend it’s 6 month 100B bond buying QE that was due to expire in April. The program will be extended by another 20 weeks, with the RBA committing to another 100b in bond purchases.

This caused a sharp drop in the AUDUSD exchange rate pushing it briefly below the all important 50 day moving average. This average is now an important support level in the coming days for AUDUSD.


Source: GO MT4

By Lachlan Meakin

Thursday, 04 February 2021 
Indicative Index Dividends
Dividends are in Points
ASX200 WS30 US500 US2000 NDX100 CAC40 STOXX50
0 2.286 0.387 0.176 1.847 0 3.607
ESP35 ITA40 FTSE100 DAX30 HK50 JP225 INDIA50
0 0 0 0 0 0 0


Disclaimer: The articles are from GO Markets analysts,  based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own;  should not be taken as either representative of or shared by GO Markets.  Advice (if any),  are of a ‘general’ nature and not based on your personal objectives, financial situation or needs.  You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice.  If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.