This is what you need to know to trade today Monday, December 7:
The first full week of December starts off with mixed market sentiment. New U.S. sanctions on Chinese officials weigh on market sentiment, while weak NFP nonfarm payrolls raise hopes for a stimulus package. The FDA is set to approve a vaccine for COVID-19 later in the week, and Brexit talks continue with greater intensity.
Non-Farm Payrolls and Stimulus: The United States added just 245,000 jobs in November, almost half the expected increase. The spread of the virus in the United States and the disappearance of several federal aid programs are taking their toll. Investors hope the figures will convince Congress to reach a new stimulus deal, perhaps along the lines of the bipartisan $ 908 billion proposals. The news suggests that Senate Majority Leader Mitch McConnell is reluctant to move.
Virus fears: The seven-day average daily death toll from coronavirus has reached 2,171, beating the record seen in the spring. Hospitalizations are at a peak of more than 101,000 and the average number of daily cases is close to 200,000. California has put tight restrictions and other states are limiting movement as well. Infections remain high in Germany and are decreasing in other large European countries.
Hopes for vaccines: The United States Food and Drug Administration (FDA) is set to approve Pfizer / BioNTech’s covid immunization on Thursday, opening the door to the first injections the next day. The UK will administer its first vaccines on Tuesday. Optimism about vaccines maintains optimism in the markets.
Tensions between China and the United States they have risen again amid news that the United States is preparing new sanctions against around 14 Chinese officials. Beijing said it strongly opposes the new restrictions.
Brexi; UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen spoke on Saturday and agreed to extend the talks. Intensive negotiations continue in Brussels with news of commitments, but no progress. EU chief negotiator Michel Barnier told envoys that disagreements persist on the three contentious issues: fisheries, governance and a level playing field. The GBP/USD it is trading around 1.34, below the highs seen late last week.
The EUR/USD it is trading above 1.21 after German industrial production beat expectations with 3.2% in October. Markets await the European Central Bank’s decision on Thursday, with a possible expansion of the bond buying program.
The oro is consolidating its gains around $ 1,840 as the price of oil falls, with the WTI about $ 46.
Cryptocurrencies are retreating from their highs. The Bitcoin It is priced at around $ 19,000.
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