Boris Johnson’s offer was rejected. The market took a wait-and-see approach

December 23, 2020

European stocks moved up after a rebound in trade supplies. Earlier, the border crossing was blocked due to the worsening epidemiological situation. At the same time, the market got to know about the rejection of Boris Johnson’s offer for mutual concessions by the European Union. The EU still refuses to reduce the cost of fish products by more than 25%. However, officials assure that both sides are ready to make a “final push” and that “a deal is still possible.”

US equity futures have faltered after the statements from Donald Trump, who criticized the pandemic relief bill. This triggered a 0.25% pullback in the S&P 500 futures after falling by 0.7%. It requires lawmakers to increase the stimulus payments to $ 2,000 from the $ 600 indicated in the document.

On the one hand, the appeal appears to be positive for the market. But, on the other hand, Trump’s comments may cause a new disturbance in the markets, since it may take more time to bring the bill into practice. The House Speaker Nancy Pelosi is now pointing to the need for larger individual checks on incentive payments and said that the House of Representatives will try to deal with the additional measure during Thursday’s meeting.

It seems that the stock and foreign exchange markets aren’t yet ready to “press the sell button” and have taken a wait-and-see approach. The credit market is traded in different directions. German Bonds and British Gilts lost profitability, while the US Treasuries moved higher.

Major stock indices opened in different directions:

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S&P 500 (F) 3,687.62 +10.37 +0.28%

DAX 13,508.05 +89.94 +0.67%

FTSE 100 6,449.85 -3.31 -0.05%

USD Index 90,325 -0.221 -0.24%

Important venets:

– United States Initial Jobless Claims at 16:30 (GMT+2).
– Canadian GDP (MoM) (Oct) at 16:30 (GMT+2);
– New Home Sales in the United States (Nov) at 18:00 (GMT+2);
– US crude oil reserves at 18:00 (GMT+2).

by JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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Boris Johnson’s offer was rejected. The market took a wait-and-see approach