Shares in Asia
Shares rallied in Asia on Tuesday after U.S. stocks continued their upward march on Wall Street, while the price of gold pushed to $1,980 per ounce.
It’s unusual to see the price of gold rally in this time, as it tends to rise when worries about the economy are high. However, for it to do so at the same as stocks are rising is very much against the grain.
Lots of attention will be focused on the two-day meeting for the Federal Reserve that will begin on Tuesday, while hopes for more help for the American economy are still rising, as Congress debates another stimulus package. Investors will be waiting to hear what the U.S. central bank will say about the economy’s prospects and what plans it has in mind in regards to the interest rates decision.
Closure of the US. Consulate
The recent incident of the closure of the U.S. Consulate in western China’s Chengdu, following the shutdown of China’s consulate in Houston, Texas, showed us antagonisms between Washington and Beijing, which are adding to tension at a time when the coronavirus pandemic appears to be sparking off again in parts of Asia, including Hong Kong, Japan and Vietnam.
Over in Wall Street, the S&P 500 climbed 0.6% to 3,239.41, while the Dow Jones Industrial Average rose 0.4% to 26,584.77, and heavy buying of technology shares helped push the Nasdaq composite 1.7% higher, to 10,536.27.
More than a third of the companies in the S&P 500 are scheduled to report this week, including Amazon, Apple, Facebook and Google’s parent company Alphabet. Those four companies alone account for 16% of the S&P 500’s total value, which gives their movements outsized influence on the index.
Thus far, profit reports have been better than Wall Street predications, though still far weaker than last years because of the Pandemics situation.
However, worries continue to mount about an uptick in layoffs across the country as businesses close down again amid growing coronavirus counts across much of the Sun Belt. Lawmakers are also struggling to handle how to support the economy as an extra $600 in weekly unemployment benefits from the U.S. government is set to expire soon. Democrats and Republicans still have much to negotiate.
This Week’s Economic Calendar
• Japan: BoJ Summary of Opinions
• Australia: RBA Kent Speech
• China: Industrial Profits
• Germany: Ifo Business Climate
• US: Consumer Confidence
• Australia: Inflation Rate
• Australia: CPI data
• UK: BoE Consumer Credit
• UK: Mortgage Approvals
• US: Fed Interest Rate Decision
• Crude Inventories
• New Zealand: ANZ Business Confidence
• Australia: Building Permits
• Germany: Growth Rate Flash
• Germany: Unemployment Change
• EU: Unemployment Rate
• EU: Consumer Confidence
• EU: Economic Sentiment
• Germany: Inflation Rate Prel
• US: GDP Growth Rate Adv
• US: Initial Jobless Claims