Global Markets Climb, Biden Concludes a Meeting with CEOs

10 Feb 2021 · 3rd Party Analysis

WRITTEN BY ThorFX

In Summary

  • European equities gain on Wednesday
  • Global stocks linger near record highs
  • Joe Biden meets with business executives over his fiscal stimulus

Global Markets Show Strength

European markets kicked off Wednesday with gains across the board. The UK’s FTSE100 led the way this morning, up 39.50 points, or 0.61%, to 6,521. The French CAC40 was up nearly 0.50%, or 25.00 points to 5,715, while the German DAX was up 0.39%, or 56 points to 14,052. European equity indexes opened higher as global shares test once again new record highs. Yesterday, European stocks had their first down day for February. US equity futures paint green arrows, indicating a higher open later as investors remain optimistic for yet another day.

As global stocks test a new high, the seemingly unlimited surge of the stock market comes amid a number of uncertainties. From the success of global vaccination programs to the looming fears of inflation and a potential valuation bubble in the making. Additionally, stimulus expectations rise, but before it, the impeachment trial of former President Donald Trump takes place as Democrats move forward with the trial today.

Joe Biden & the US “Rescue Package”

The large-scale fiscal stimulus remains the main focus of the market in the near term. President Joe Biden, vice president Kamala Harris and Secretary of Treasury Janet Yellen join efforts to persuade lawmakers to embrace the proposed $1.9tn relief package, which is expected to go through Senate in the next couple of weeks. In his latest push, President Biden met with business leaders yesterday afternoon. JPMorgan Chase CEO Jamie Dimon and Walmart CEO Doug McMillon were among the guests in the White House. The gathering in the Oval Office was the first meeting of President Biden with US business leaders. The agenda of the meeting was the proposed rescue package as Mr. Biden sought to win corporate support for his economic plan.

“I’m confident that by working together, we’ll get the economy growing again and get the American people back on their feet”, Mr. Biden said in a Tweet after the meeting. VP Kamala Harris and Treasury Secretary Janet Yellen were also present during the discussion. Also attending were Tom Donohue, CEO of the US Chamber of Commerce, Sonia Syngal, CEO of Gap, and Marvin Ellison, CEO of Lowe’s.

After the meeting, JPMorgan CEO Jamie Dimon commented the discussion was “constructive and detailed”. He expressed his optimism to work together with Republicans and Democrats “to build an economy that is stronger, more resilient, and more inclusive”.

Later today, the market will be monitoring the speech of Federal Reserve Chairman Jerome Powell on an Economic Club of New York webinar. Investors expect to hear more about the position of the US dollar versus peers in Asia and the euro. Chairman Powell will address the state of the US labor market while presenting his remarks on the economic outlook and its implications for the Fed’s policies. US inflation statistics are also due to be published today.

Heading to Europe, European Commission President Ursula von der Leyen will appear before the European Parliament today. She will speak on recent issues related to the vaccine rollout program and the Irish border.

 

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