Daily Market Outlook – Eye on FED while AAPL surges

Speculation on the growing size of the US stimulation package is boosting stock markets, especially the US benchmark indices. Additionally, there is positive news surrounding Brexit as negotiations seem to be drawing to a close. Last but not least, Apple gained great momentum after the Nikkei reported good news supporting the company’s fundamental status. 

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US news: US President-elect Joe Biden has selected Jennifer Granholm, the former Michigan Governor, to take over the Department of Energy. Biden has also selected Gina McCarthy, former Environmental Protection Agency head, as his domestic policy chief. Biden is also considering a member of the Republican Party as candidate to lead the Department of Commerce – singing true to his election motto “to be the president for all Americans”. Speaking of the US election, Vladimir Putin, Rusian President, has finally offered an official congratulations to Joe Biden on his victory just as the Electoral College validated the results.

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EU-UK news: With progress being made on both sides during Brexit talks, EU Commissioner President, Ursula von der Leyen, is optimistic the EU and UK will reach an agreement which will ensure a smooth transition by the end of the year. The European Central Bank has lifted its 9-month ban on dividend payments, which can recommence in 2021, however, told to do so with caution given the economic impact still being felt as a result of the COVID-19 pandemic.

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Corporate news: Goldman Sachs analyst, Neil Mehta, upgraded ExxonMobil (XOM) to buy from hold. Apple (AAPL) shares surged following Nikkei’s announcement that the iPhone output’s target is almost 30% in the first half of 2021. In the meantime, David Solomon, Goldman Sachs CEO, reported his concerns regarding the buying-bullish-driven bias by the small investors for participating in the IPOs.

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Macros: Earlier today, Japanese Exports dropped significantly by -4.2%, UK’s Inflation rate fell at 0.3%, PPI Core output YoY improved by 0.9%, and Retail price Index YoY turned to negative at -0.3%. EU Markit Composite PMI increased at 49.8 as well as Services at 47.3, while Balance of Trade rose at €30bn. Later today, traders should be highly cautious as expected FOMC economic forecasts and the interest rate as well as US Markit Composite and Service.

Disclaimer

The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.