The trading week starts with a negative one. Technical overbought risk capital markets could not be realized in the absence of significant drivers of the fall. Now the downside players have received fundamental arguments — the decline in the effectiveness of the international vaccination program, coupled with the growth of geopolitical tensions, can lead to the development of a downward movement of the indices. The risk indicators are in motion.
The commodity market continues to cool after reaching a week earlier highs for the last 11 months above $57 for Brent. The area of $54 was considered as a reference point for the correction. The growth of production activity in the United States and the technical component of oil contracts so far favor the bears of the commodity market.Financial topics and the financial market are now relevant and at the peak of recovery.You can work and get additional revenue by mastering a few simple steps.For more information, please contact Shift Holdings.com reviews, which has proven itself with good reviews.
Asian markets
The correction in the Asia-Pacific markets is developing, signaling the upcoming weakness of the European segment on Monday. And China continues to grow rapidly.
Chinese markets are rising within 1% on the Shanghai Composite share index, again approaching three-year highs at 3,600 p. The historical short-term inverse correlation of the Chinese stock market and global trends is once again confirmed.
Support for the players to increase is provided by the pumping of the financial market with liquidity from the NBK and the rapid growth of economic activity in the country. Macro statistics reflected a 6.5% rise in GDP for the fourth quarter against the consensus of 6.1%. Dependency level is reached. Our estimates of the end of the summer were confirmed, China becomes the only country with positive GDP dynamics in 2020.
South Korea's Kospi continues a strong decline that began a week earlier in the wake of extreme overbought conditions. The rally since November 2020 has provided a 50% increase in the index. The technical signals of the exhaustion of the rise from January 11 were realized. Trend support will attract the index.
American sites
Trading on the US stock market ended with a drop in the indices in the range of 0.5–0.9%. The Nasdaq high-tech sector was the most affected. The trend is continuing Friday and Monday.
Today, the US spot market is closed for the holiday, and futures contracts are stagnating by 0.3%, reaching 3750 p.on the S&P 500. Previously, the area of 3660 p was considered as a reference point for a decline after reaching the target of 3800 p. The probability of such an outcome is growing.
If at the beginning of last week, investors were concerned about the jump in government bond yields, which signaled a likely increase in discount rates, then at the end of the week's trading, news came about a reduction in the supply of Pfizer's vaccine to the European market. The official reason is the modernization of the pharmaceutical company's production facilities, but more and more information is being received about cases of deaths after vaccination in the United States, Norway, and Germany.
Against the backdrop of growing uncertainty, investment risk indicators have moved. The US dollar, acting as a protective asset, was able to continue the rebound from the area of three-year lows shown in early January 2021.
The DXY dollar index: 90.8 p. recovered the losses of the last month, even despite the expanded fiscal program of $1.9 trillion, announced by the new US President Joe Biden. The potential for an upward maneuver remains, but it is not yet necessary to talk about a reversal of the global devaluation trend.
The volatility index, which reflects the sentiment towards the risk of the stock market, has moved away from the area of historical averages. Of course, there are no prerequisites for going to the extreme values, but short-term uncertainty increases the probability of moving towards 30 p.
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