Negotiations on the allocation of the support package to the US economy have failed. Investors are seeking refuge.

In Washington, officials were unable to agree on a program of additional economic stimulus worth just over $900 billion. The breakdown of negotiations changed the investors’ tactics from bullish to bearish. The yen and franc went up along with bonds. Stock indices went down. The yield of the benchmark US Treasuries ends the week in the red at the level of 0.880% after a solid fortnight gain.

The decline in shares of the banking sector in the US also affected the European stock market. Moreover, European stocks fell within additional pressure from the lack of progress in the Brexit negotiations. Officials are already extremely skeptical about the possibility of reaching an agreement on this issue. As a result, the pound fell within strong pressure.

The euro is close to its annual highs. The single European currency is supported by the approval of a budget of $2.2 trillion and an additional stimulus package aimed at stabilizing inflation and leaving the deflationary spiral in 2021.

The product market continues to grow. Oil futures hit highs in March, pushing the Commodity Spot Index to the highs of 2014. The recovery of oil demand is supported by the positive sentiment of the investors about the decline in the pandemic.

Market indicators

Major stock indices are trading in the red:

S&P 500 (F) 3.637.12 -31.38 -0.86%

Dow Jones 29.999.26 -69.55 -0.23%

DAX 13.073.75 -221.98 -1.67%

FTSE 100 6.541.09 -58.67 -0.89%

USD Index 91,000 +0.180 +0.20%

• There are no important events today.

by JMarkets, 2020.12.11

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.