This is what you need to know to trade today Tuesday, January 5:
Markets are cautious after falling on Monday as concerns about the new strain of coronavirus prompted the UK’s third lockdown. There is also the uncertainty about Georgia’s special elections. Finally, ISM’s manufacturing PMi stands out on the economic calendar.
Coronavirus: UK Prime Minister Boris Johnson announced a third nationwide shutdown that includes schools and recalls the harsh lockdown in spring. The move came in response to a surge in COVID-19 infections that is overwhelming hospitals.
The new strain of covid B.1.1.7 it is considered responsible for the rapid spread. Concerns are growing about the efficacy of vaccines against a different South African variant. The Prime Minister’s exit strategy is based on vaccines when the UK started administering the Oxford University / AstraZeneca vaccine. The news weighed on the pound and also on broader markets.
Europe: Germany extended its lockdown until the end of January amid stubbornly high cases. Both Berlin and Paris were criticized for the slowness of vaccines and promised to increase distribution. EUR / USD remains above 1.2250.
American politics: Citizens of the southern state of Georgia go to the polls to determine control of the Senate. Republican David Perdue competes with Democratic rival Jon Ossof and Republican Senator Kelly Loeffler battles Raphael Warnock. President-elect Joe Biden needs both Democratic candidates to win to get effective control of the Senate.
The prices of the oro they remain elevated in anticipation of a Democratic victory that would open the door to a multi-million dollar aid package.
The outgoing president, Donald Trump, is still trying to reverse his defeat ahead of a special session of Congress on Wednesday, sparking a split within the Republican Party. Both uncertainties weighed on sentiment on Monday.
The New York Stock Exchange (NYSE) announced that would abandon plans to delist several Chinese companies. The initial move came in response to Trump’s Executive Order related to state-owned companies. The news is good for risk appetite.
The Purchasing Managers Index is expected to ISM Manufacturing PMI for December show continued growth in the industrial sector. The post and its employment component serve as clues to Friday’s NFP nonfarm payroll report.
See: December US Manufacturing PMI Preview: Covid is the present but recovery is the future
The prices of the Petroleum They are stabilizing around $ 47 after Monday’s OPEC + meeting ended without a conclusion. Talks about production cuts continue Tuesday.
He Bitcoin it is trading around $ 31,000, retreating from the highs but on high ground. JP Morgan suggests that the price of the cryptocurrency could reach $ 146,000. Ethereum is trading around $ 1,000, while Ripple remains on the defensive.
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