Wednesday, 20 January 2021

Markets mixed, Yellen looking to “act big” on stimulus

Markets were mixed on Tuesday.

The S&P 500 rose 0.8 percent but the STOXX Europe 600 fell 0.2 percent.

Earlier in Asia, the Nikkei 225 jumped 1.4 percent but the Shanghai Composite fell 0.8 percent.

In the US, some investors were looking for more fiscal stimulus after Janet Yellen, President-elect Joe Biden’s designated nominee for Treasury Secretary, told the Senate Finance Committee on Tuesday that “with interest rates at historic lows, the smartest thing we can do is act big”.

Fundstrat’s Tom Lee wrote in a note that stocks are “likely poised to resume upside, after ending a healthy consolidation”.

Meanwhile, though, some investors remain concerned about bubbles, with a Deutsche Bank survey showing that Bitcoin and US tech stocks are viewed as the biggest market bubbles right now.

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