Tuesday, January 26, 2021

Why Stimulus 3.0 + Impeachment 2.0 means very little to investors

Must read


This is the web version of the Bull Sheet, Fortune’s daily no BS in the markets newsletter. Sign up to receive it in your inbox here.

Hello, Bull Sheeters. Stocks and futures were little changed on Thursday despite reports The incoming Biden administration is forecasting a new round of stimulus spending, with this one carrying a price tag of $ 2 trillion. Robinhood Merchants, you’re in luck. The proposal would include $ 2,000 stimulus checks, which would buy you a decent fraction of Bitcoin.

Washington’s other big news – Impeachment 2.0 – did little to shake the markets yesterday. Yes, the Dow Jones fell in the last half hour of trading, coinciding with the historic vote of “insurrection”, but the real test comes to the Senate – whenever it can be.

Let’s see what is moving the markets.

Market update

Asia

  • The main Asia Index are mixed in the afternoon trade, with Japan Nikkei high 0.8%.
  • China reported his first COVID death in nine months and its largest cluster of new cases since last spring, revelations weighing on investors.
  • the Trump administration import bans slapped on Chinese cotton and tomato expeditions as global criticism mounts against Beijing for human rights violations in Xinjiang.

Europe

  • theEuropean scholarshipswere mixed up in the first exchanges with theStoxx Europe 600 high 0.2% in the open air, before climbing.
  • the euro resists just like Italian stocks and bonds, although Prime Minister Giuseppe Conte government in Rome teeters on the edge of collapse. Overthrown governments are nothing new in Italy (although this is a rare event in the midst of a pandemic).
  • the $ 20 billion mega transatlantic grocery merger between Canada Couche-Tard and French distribution giant crossroads hit a huge snag. The French government is expressing opposition to a foreign takeover of France’s favorite place to buy toilet paper during a pandemic.

WE

  • the American Futuresare flat again this morning after meager gains on the S&P 500 and the Nasdaq yesterday. Intel was the top performer yesterday after the beleaguered chipmaker’s announcement a change of leadership.
  • What happened to stimulus trade? CNN report President elect Joe biden will reveal roughly $ 2 trillion The COVID-19 relief package today, and yet the markets are absolutely unimpressed.
  • Shares in Johnson & johnson were 1.2% higher in pre-market trading after the advertised drug maker his single injection COVID-19 vaccine generated a promising long-lasting immune response in early testing.

Somewhere else

  • Goldis down, back below $ 1,840 / ounce.
  • thedollar is flat.
  • Grossis declining, with Brent stable around $ 56 / barrel.
  • BitcoinEast up to 10% in the last 24 hours. Maybe I should have followed my butcher’s advice to go all the way $ 35,000.

***

Buzzworthy

Advice on earnings season, courtesy of BofA Securities

Track selection tips, courtesy of famous rapper Meek Mill

And the person in charge of vaccination is …

Trade in trade is based on successful vaccine deployment. Fortune is tracking winners and losers.

Who needs stimulus, anyway?

As the new Biden administration plans a third round of stimulus, let’s take a look at household savings rates. According to the German investment bank Berenberg, American households are more on the same level as the Germans, the French and the British.

***

Have a very good day everyone. I’ll see you here tomorrow… Until then, there’s more news below.

Bernhard Warner
@BernhardWarner
Bernhard.Warner@Fortune.com

As always, you can write tobullsheet@fortune.comor reply to this email with suggestions and comments.



- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest article