minus academy faq plus academy faq Check in circle Apple Android Home Magnifer Calculator Mail Email Facebook Twitter RSS Linkedin Linkedin hollower Headphones Wechats Instagram Line Mail 2 Phone Phone 2 Minus Plus Arrow right Arrow left (variant 2) Arrow right (variant 2) Brand logo Brand logo not filled Hamburger Flag of the Hong Kong Flag of the US/GB Flag of the US/GB Flag of the US/GB Flag of the China Flag of the China Flag of the China (traditional) Flag of the Taiwan Flag of the Hong Kong Flag of the Spain Flag of the Russia Flag of the France Flag of the German Flag of the Portugal Flag of the Italy Flag of the Poland Flag of the Czech Flag of the Hungary Flag of the Sweden Flag of the Bulgarian Flag of the Finland Flag of the Lithuania Flag of the Denmark Flag of the Croatia Flag of the Estonia Flag of the Norway Flag of the Romania Flag of the United Arab Emirates Flag of the United Arab Emirates Flag of the Indonesia Flag of the Malaysia Flag of the Korea Flag of the Korea Flag of the Samoa Flag of the Vietnam Flag of the Thailand Flag of the Japan Cross Cross large User Arrow down Arrow up Cube Info list Data comunication Clock Slash

Markets open mixed amid the US holiday

Markets open mixed amid the US holiday
Markets open mixed amid the US holiday

Market Summary (January 11 – 15)

 

Uncertainties kept investors cautious

Last Friday, the Wall Street closed lower as traders reviewed the worries over the markets. Despite the announcement of the $1.9 trillion stimulus plan from Joe Biden’s administration, the deteriorating coronavirus pandemic continues to weigh on the market sentiment.

Investors expected that the new US government may consider to raise tax to solve part of the budget deficit due to such massive fiscal support, that on the other hand may weaken the recovery of the US economy and the effectiveness of the current monetary policies.

ZFX analyst Jacob Leung said that it would be a “trade-off”. If Biden’s tax policy is implemented, the dollar’s outlook will be a bit different. And in turn, the whole market sentiment may not be that bullish.

 

Market Forecast this week (January 18 – 22)

 

Dollar index may reach 91 level

However, stocks today in Asian markets were mixed as investors were a bit positive to react to the better-than-expected Chinese GDP data of Q4. Reuters reported that the Trump administration has revoked the licenses of providing supplies to the Chinese telecommunications giant Huawei. But, on Monday, stock markets of HK and Mainland still traded higher amid the potential escalating China-US uncertainty.

ZFX analyst Jacob Leung said that the trend of dollar may change, especially if the euro tends to be downward. Not only the worsening of the global coronavirus cases boosted the safe haven demand, but also the lockdowns in Europe and the Italian political chaos put pressure on the euro.

 

WTI “little double top”

The oil prices were relatively stable recently as investors are bullish to bet on the trillion dollars relief bill in the US and the OPEC+ policy.

But, last Friday the oil markets were experienced a correction under the cautious sentiment. Traders start to question the global demand again under such severe pandemic situation and the sustainability of the production cuts from the OPEC+.

ZFX analyst Jacob Leung said that the tech movements of the oil prices were not that optimistic, that may cause further retracement. Of course, the tax worries of the US also hurt the outlook of the oil market.

 

 

__

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.

ZFX (Zeal Capital Market) is an FCA & FSA licensed online Forex & CFD broker providing more than 100 products for Forexcommoditiesstock indices, and share CFDsOpen a trading account with min. USD 50 deposit and download our MT4 trading platform now!