The economic calendar is moderately busy today. First came PPI and machinery orders reports from Japan, which were better than expected. Then, Germany published its GDP report for 2020, which showed that the economy grew at a rate of -5%, slightly better than the forecast of -5.1%. This is the worst annual GDP report Germany has experienced since the end of World War II.
The European Central Bank will publish the minutes from its latest policy meeting in the afternoon.
Later in the day the United States will offer its weekly portion of jobless claims reports. In addition, there will be several speeches by Federal Reserve representatives, including one from Chairman Jerome Powell.
Furthermore, President-elect Joe Biden is scheduled to speak today about his plans to tackle the coronavirus pandemic, which will be his number one priority when he steps into office next week.
Biden previously promised to have at least 100 million vaccinations in the first 100 days of his term but details on how his team plans to achieve that are still missing. Many expect that today’s announcement will elaborate on that plan.
Moreover, Biden will also reveal his Covid-19 relief plans, which are reportedly about a stimulus package worth at least $2 trillion. If the funding he announces today is indeed that generous, expect interest in risky assets to quicken and stock indices to rise in value.
US stock indices have shown an inclination to rise today but will most likely wait for Biden’s announcement before they commit to a trend for the next couple of days.
In terms of other political developments, the FBI is still trying to prepare the United States for violent clashes next week as Trump supporters have decided to protest against Biden’s inauguration.
Meanwhile, the President got impeached by the House of Representatives yesterday. However, current Senate Majority Leader Mitch McConnell said that the Senate won’t come together until late next week, meaning that Trump’s impeachment trial will begin during Biden’s term.
Crude oil has stabilized above $50 and may climb higher depending on what a report by OPEC will state later today about the current demand for oil. Saudi Arabia already willingly curbed its own supply without consulting with any of the other cartel member states.
