Global Stocks Keep Near Record Highs, Gold Slides

12 Feb 2021 · 3rd Party Analysis

Global Stocks Keep Near Record Highs, Gold Slides


In Summary

  • Global stocks remain calm near-record levels, gold slips towards $1,820
  • Biden meets with bipartisan Senators at the White House

Global Stocks, Gold & a US Rescue Plan

Equities around the globe traded fairly muted on Thursday and US futures contracts continued similarly on Friday as investors prepare to enter the US trading session. Yesterday, the European market closed pretty much unchanged. Both the German DAX and the UK’s FTSE100 closed in positive territory, up 0.77% and 0.07%, respectively. The French CAC40 closed the session virtually flat, down 0.02%, or 0.98 points.

US market participants also expressed relatively low levels of buying optimism as they pushed the S&P500 up some 0.17% or 6.50 points to a close of 3,916. The Nasdaq Composite climbed to 14,025, up 0.38% or 53.24 points. Futures tied to the Dow Jones, S&P500, and Nasdaq indicate a lower open on Friday in premarket trading hours.

In the meantime, the gold market posted its first down day since Friday last week. On Thursday, gold slipped 1.43% to a close of $1,825 per ounce, while silver traded flat, opening at $26.98 and closing at $26.95. The precious metal market looks rather unchanged on Friday with prices consolidated around opening levels as investors continue to monitor developments regarding the stimulus bill and the rollout of vaccination programs around the globe.

President Biden and his administration continue their work in relation to the American Rescue Plan. Joe Biden recently met with business leaders at the White House and yesterday morning invited a bipartisan group of Senators to discuss investments in “modern and sustainable infrastructure”. “This isn’t a partisan issue. I’m committed to working across the aisle to deliver infrastructure and jobs to communities across the country”, Mr. Biden said in a tweet after the meeting.

Emergency Lockdown in Australia

On the Covid front, new US cases climbed back above 100,000 on Thursday. The country had dropped below the six-digit number for the last four days. Yesterday, authorities reported 103,024 new infections across the states, topping 100,000 for the first time since Saturday. Before Sunday, the US kept a daily rate of over 100,000 new Covid-19 cases since the start of November. Thursday’s death toll also marks an increase – 3,885 coronavirus fatalities up from 3,445 on Wednesday. The hospitalization rate, however, registers a decline. Currently, the number of Covid infected patients in hospitals stands at 74,225, the lowest since Jan 16.

A five-day lockdown was ordered in the Australian state of Victoria in efforts to prevent the spread of the virus after a hotel quarantine was breached. Additionally, the Victorian state confirmed 13 cases of the fast-spreading UK coronavirus variant. The lockdown includes a stay-at-home order for Melbourne citizens who are only allowed to go out if they work in essential services and care-giving or need to buy groceries.

In the UK, where the vaccination program remains on track to deliver the vaccine to 15 million people by Feb 15, authorities will start discussions for the safe reopening of international travel. Prime Minister Boris Johnson, did not rule out a possible international certification for travelers when asked about it on Wednesday. He reaffirmed that the priority now is to vaccinate as many people as possible.

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