A new round of stimulus measures in the United States is expected to push the US stock market higher on the 19th, while the European stock market is dragged down by Germany’s extended blockade period and fell across the board. International oil prices also rose significantly that day.

The three major U.S. stock indexes rose

Due to the optimistic expectations of investors, the three major stock indexes of the New York stock market rose on the 19th. Among them, the Dow rose 0.38%. The S&P index rose 0.81%, and the Nasdaq index rose 1.53%.

In terms of sectors, eight of the eleven sectors of the S&P 500 index rose and three fell. Among them, the energy sector and the communications service sector led the gains by 2.08%and 1.87%, respectively. The real estate sector and the consumer staples sector were led by Declines of 0.54%and 0.44%led the decline.

The former chairman of the Federal Reserve and the nominee of the new US Treasury Secretary Yellen said at the nomination hearing that day , President-elect Biden and himself took the debt burden of the United States into consideration when proposing this relief proposal. But with interest rates at historically low levels, the smartest thing to do is to launch large-scale stimulus measures.

Yellen said:”I believe the benefits will far outweigh the costs, especially if we care about helping people who have been struggling for a long time.”

“Fund Strategy” Global Consulting The company’s research director Tom Lee said that after a”healthy” consolidation, the stock market is likely to regain its momentum.

Rochelle Varensky, a professor at Harvard Medical School who was nominated to be the director of the Centers for Disease Control and Prevention of the United States, recently expressed confidence that 100 million people will be vaccinated against the new crown within 100 days of the new US government.

In terms of Chinese concept stocks, the top gainers on the day were, qutoutiao rose 11.74%, learn from Up 10.67%, Phoenix New Media up 9.15%, Huami up 8.1%, Yunmi Technology up 7.84%; the top decliners were 500 Lottery, down 7.45%, Ninth City, down 6.76, and China Open, down 5.14%. Renren fell 1.99%, and Fangtian fell 1.56%.

European stock markets generally fell

Because Germany may extend the lockdown period, Europe is worried that corporate profits and economic growth will be damaged. European stock markets fell on the 19th.

The pan-European Stoxx 600 index closed down 0.2%on the day.

The German DAX index also fell by 0.2%, although a survey by the ZEW Institute for Economic Research showed that German investor confidence increased more than expected in January.

The French CAC40 index fell 0.3%, and the UK Financial Times 100 index fell 0.1%.

As German Chancellor Merkel and state governors agreed to extend the lockdown of most shops and schools to February 14, the prospect of a longer-term lockdown has made investors nervous.

Defensive stocks such as healthcare and utilities rose, with retail, mining, and travel and leisure stocks suffering the most.

According to Refinitiv IBES data, as more and more European companies announce their results, analysts expect the fourth-quarter profits of Stoxx 600 index companies to decline by 26.2%.

However, investors’ main concern is that due to the European economy being affected by strict epidemic lockdown measures, the previously expected first and second quarter profits to rebound 43.5%and 81.1%, respectively, may be questioned .

International oil prices have risen significantly

As the new round of stimulus measures in the United States is expected to push up oil demand and the US dollar is expected to weaken, international crude oil futures prices are on the 19th Significant increase.

As of the close of the day, the price of light crude oil futures for delivery in February 2021 on the New York Mercantile Exchange rose 0.62 US dollars, to close at 52.98 US dollars per barrel, an increase of 1.18%. The price of Brent crude oil futures for delivery in March 2021 in London rose by US$0.80 to close at US$55.90 per barrel, an increase of 1.45%.

Senior Vice President and Head of Oil Markets of Resta Energy Company Bjornar Thonghaiyugen said that in the Biden As the government era is about to begin, traders have high expectations for the rapid and positive effects of the new government’s proposed additional fiscal stimulus of $1.9 trillion on the market.

The monthly oil market report released by the International Energy Agency on the 19th revised down the forecasts of oil demand in the first and second quarters of 2021 by 600,000 barrels/day and 300,000 barrels/day, respectively, in 2021. The average increase in oil demand from the previous month is expected to be 5.5 million barrels. (Reporter Yan Lei Liu Yanan comprehensive report)

Source:Economic Information Daily