Investors Celebrate Hopes for Stimulus and Vaccines, Spotlight on Clues to NFP

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This is what you need to know to trade today Wednesday, February 3:

Markets are celebrating the prospects for strong US stimulus, impressive earnings from tech companies and upbeat news on vaccines. The US dollar holds firm as higher yields offset declining safe-haven cash flows. The spotlight is on the leads ahead of the NFP nonfarm payroll report and additional news on vaccines and the stimulus.

American stimulus: As President Joe Biden continues talks with Republicans, Senate Democrats have advanced the original $ 1.9 trillion White House bill using the reconciliation process. It is not yet clear that Congress will have the votes for the full package or if a compromise will still be reached in the future. However, the stock markets are rising and the bonds are selling. Falling Treasury yields are underpinning the dollar’s rise.

US data: The ADP jobs report is expected to show a small gain in private sector jobs in January after marking a loss in December. The ISM Services PMI Purchasing Managers Index expects a minor slowdown, albeit from high levels.

See: ADP Job Change Preview for January: A Return to Hiring?

See: January US Services PMI Preview: No Reason to Back Down Now

Jeff Bezos will step down as CEO of Amazon, the online retail giant. The news came alongside record earnings for the company and impressive earnings for Alphabet, Google’s parent company. Both figures helped drive the stock.

GameStopThe example of the recent battle between retail investors and hedge funds, has plunged more than 60% to close below $ 100. Other featured stocks on WallStreetBets are also on the defensive, but to varying degrees.

Vaccines: AstraZeneca said that spacing the two doses of its COVID-19 vaccine three months apart increases the efficacy to 82%, vindicating the UK’s approach and also giving hope to the EU, which has ordered a large number of doses. Sputnik V immunization studies from Russia showed a high efficacy rate of 92%. In Israel, the world leader in vaccinations, serious illnesses and hospitalizations are falling among those over 60, who were the first to receive the vaccines.

Europe: According to the news, the president of the European Commission, Ursula von der Leyen, has taken responsibility for the debacle of the bloc over vaccines, especially in relation to the border with Ireland. Fears of a double recession weigh on the euro.

Mario Draghi, former president of the European Central Bank, may return as Prime Minister of Italy. The renowned technocrat will meet with the nation’s president and try to form a government after current prime minister Giuseppe Conte failed to muster a majority. The EUR/USD it remains close to 1.20 ahead of final services PMIs.

Crude oil prices WTI they are rising as hopes for rising demand and high compliance with production cuts by OPEC + members come into play.

The cryptocurrencies are moving forward, with Ethereum standing out. Vitalik Buterin’s creation has reached a new all-time high above $ 1,500.

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