Stock markets rocketed?
Overnight, all three major indexes of Wall Street were up, of which the Dow rose to a new closing high, the S&P 500 gained around 1.4%, and the Nasdaq jumped almost 2%.
Shares in Asian markets generally closed up on Thursday, following the Wall Street record highs overnight. The European Stocks also climbed a bit in early trading session, reflecting bullish outlook of those investment markets.
Bullish sentiment towards Biden’s administration?
The new US President Joe Biden was sworn into office. Investors now is expecting Biden’s administration will work on the massive stimulus plan, up to $1.9 trillion. And, He has already announced the return to the “Paris Agreement” and the WHO.
Investors are keeping an eye on a better relationship between the rest of the world and the US, that may improve the global economic recovery process in the future. Of course, the new US government introduced stricter policies to fight the coronavirus pandemic, to a certain extent boost up the optimism of traders other than vaccination.
Dollar index stands at 90 level, for long?
The US dollar index, which tracks the greenback against 6 currencies, was still trading at 90 above level, despite the positive sentiment among the markets.
Investors believe that the new US Treasury Secretary Janet Yellen will continue to push those supportive policies to rescue the losing momentum US economy. Optimism about the massive stimulus package and the long-term low-rate monetary policy will hurt dollar’s attractiveness through these years.
Riskier commodity currencies keep strong, as the stock markets in generally are doing good, lowering the demand for safe-haven. Most of the analysts in the market are questioning about the greenback if the risk-on sentiment is expected to maintain this whole year.