Markets Point Higher in Trump’s Last Full Day in Office
19 Jan 2021 · 3rd Party Analysis
- European markets trend upward during Trump’s final hours as President.
- Biden administration to start with hefty Stimulus Package
Today is the last day of President Donald Trump in office. He ends a presidency with a few historical precedents and a presidency that has highly polarized the nation. Mr Trump is going through a Senate impeachment trial as early as next week. As the only president to be impeached twice, Donald Trump will also be the first president to be tried after leaving office. Outgoing President Trump is set to skip Joe Biden’s inauguration tomorrow. Nevertheless, White House officials are planning a farewell ceremony for Donald Trump where he and his supporters will hold a separate event outside of Washington.
Later today, the market is preparing to hear comments from the US Treasury Secretary nominee Janet Yellen. She is scheduled to speak in front of the Senate on Tuesday and address the stimulus package proposal of $1.9tn, the US dollar and the overall state of the economy. The US stimulus situation is one of the big drivers of the market at present. The comments made by the incoming Treasury Secretary will be closely monitored by traders and investors. One of the main topics she is expected to highlight is the additional stimulus of $1.9tn on top of the $900bn already approved at the end of last year. The former Federal Reserve chair will also comment on the weak dollar which in recent days has paused its slide.
Markets remain calm ahead of the hearing of Janet Yellen later today. The US dollar is showing some signs of weakness as the EURUSD has climbed over 1.2100 and currently hovering near 1.2120. Gold is keeping steady gravitating towards the $1,850 region, while Silver has consolidated for the last 10 days in the neighbourhood of $25.00 to $25.50.
European Markets Show Recovering Signs
As a result of the weaker dollar, the euro has strengthened its position over the course of last year. In light of this, the EU is due to unveil its plan to bolster the single European currency and strengthen its international role. The European Commission later today will release a blueprint intended to provide a way to protect the European Union from external and internal financial risks. The draft will also outline how to make the bloc’s economy and financial structure more resilient and sustainable.
European markets kickstarted the trading session on Tuesday with gains across the board. The broad European markets opened higher in the last full day of Donald Trump as US President. The timid session yesterday saw main indexes modestly higher as European investors clocked in for the week, while US peers took a breather for Martin Luther King, Jr. Day and the stock market was closed.
Monday’s lightweight trading pushed the German DAX higher by 0.44%, followed by the French CAC, up 0.10. UK’s FTSE closed in negative territory, down 0.22%. Today’s early trading in the European session flashed some gains as the DAX was leading the way, up nearly 1%, CAC40 was higher by 0.50% and the FTSE100 was up by almost 0.50%. As the day unfolded, the gains were mostly erased and European markets are now trading relatively flat. US futures point to a higher open, as Dow, S&P and Nasdaq futures all suggest investors will see upside at the opening.