{"id":83179,"date":"2020-12-21T10:10:38","date_gmt":"2020-12-21T10:10:38","guid":{"rendered":"https:\/\/www.zfx.com\/market-outlook\/zfx-markets-were-mixed-amid-the-us-stimulus-bill\/"},"modified":"2020-12-21T10:10:38","modified_gmt":"2020-12-21T10:10:38","slug":"zfx-markets-were-mixed-amid-the-us-stimulus-bill","status":"publish","type":"market_outlook","link":"https:\/\/www.zfx.com\/en-mena\/market-outlook\/zfx-markets-were-mixed-amid-the-us-stimulus-bill\/","title":{"rendered":"ZFX: Markets were mixed amid the US stimulus bill"},"content":{"rendered":"

Stocks in Asian markets were mixed on Monday despite the agreement on a $900 billion coronavirus stimulus bill from the US. Investors are very cautious as the Covid-19 pandemic is still very severe.<\/p>\n

European markets are trading lower as investors are worried about the situation in the UK. The UK has imposed tougher lockdowns to deal with the fast-spreading new coronavirus strain.<\/p>\n

Last week, the hopes of the stimulus package of the US and the rollout of vaccines boosted the risk sentiment. The dollar was weak under the risk-on condition. Riskier currencies, stock markets, commodities and precious metals performed well as investors is expecting a faster economic recovery globally.<\/p>\n

However, the dollar bounced back against major peers on Monday, reflecting risk aversion. Sterling has dropped sharply, falling over 2% to 1.32 level.\u00a0Traders are monitoring the UK-EU talks and the tough lockdown in London during Christmas, triggering heavy sell-off pressure of the Sterling. So far, the \u201cdeadlock\u201d Brexit talk was still uncertain with not much progress over the issues, especially the fisheries. Although both sides showed the willingness to negotiate, the situation is still complicated.<\/p>\n

Gold price reached $1900 level in the earlier trading session. The US stimulus bill, low-rate policy of the Fed, \u201cHard Brexit\u201d possibility and the new lockdowns in the UK are all pushing the demand of gold. But, on the other hand, oil prices has tumbled near 5% after opening. Investors are nervously watching the fast-spreading new coronavirus strain and the lockdowns over the European region may seriously affect the economic recovery in the coming months.<\/p>\n

Overall, the risk appetite from the $900 billion of the coronavirus stimulus bill was overshadowed. In other words, it may be a typical \u201cbuy the rumor sell the news\u201d as such \u201cbullish\u201d has been \u201cpriced in\u201d. The dollar, which is deemed as the only \u201crelative\u201d safe haven, may go further stronger if the uncertainties remain.<\/p>\n

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Risk Warning: The above content is for reference only, and does not represent ZFX\u2019s 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.<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Overall, the risk appetite from the $900 billion of the coronavirus stimulus bill was overshadowed. In other words, it may be a typical \u201cbuy the rumor sell the news\u201d as such \u201cbullish\u201d has been \u201cpriced in\u201d. The dollar, which is deemed as the only \u201crelative\u201d safe haven, may go further stronger if the uncertainties remain.<\/p>\n","protected":false},"author":100,"featured_media":62286,"template":"","market_outlook_categories":[11907,11908,11909],"market_outlook_tags":[],"class_list":["post-83179","market_outlook","type-market_outlook","status-publish","has-post-thumbnail","hentry","market_outlook_categories-analyst-insights-en-mena","market_outlook_categories-daily-outlook-en-mena","market_outlook_categories-forex-analysis-en-mena"],"acf":[],"current_lang":"en-mena","_links":{"self":[{"href":"https:\/\/www.zfx.com\/en-mena\/wp-json\/wp\/v2\/market_outlook\/83179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.zfx.com\/en-mena\/wp-json\/wp\/v2\/market_outlook"}],"about":[{"href":"https:\/\/www.zfx.com\/en-mena\/wp-json\/wp\/v2\/types\/market_outlook"}],"author":[{"embeddable":true,"href":"https:\/\/www.zfx.com\/en-mena\/wp-json\/wp\/v2\/users\/100"}],"version-history":[{"count":0,"href":"https:\/\/www.zfx.com\/en-mena\/wp-json\/wp\/v2\/market_outlook\/83179\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zfx.com\/en-mena\/wp-json\/wp\/v2\/media\/62286"}],"wp:attachment":[{"href":"https:\/\/www.zfx.com\/en-mena\/wp-json\/wp\/v2\/media?parent=83179"}],"wp:term":[{"taxonomy":"market_outlook_categories","embeddable":true,"href":"https:\/\/www.zfx.com\/en-mena\/wp-json\/wp\/v2\/market_outlook_categories?post=83179"},{"taxonomy":"market_outlook_tags","embeddable":true,"href":"https:\/\/www.zfx.com\/en-mena\/wp-json\/wp\/v2\/market_outlook_tags?post=83179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}