The retail investors success is now continuing to draw the attentions in the stock market. Although it is not clear how long this hot wave of WSB can last, the forum is bound to continue to select new targets in the future, so-called WSB concept. This week, silver price gapped up in the opening session and has touched $30 per ounce after WSB calling.
Shares in Asia-Pacific were nearly all bearish on Thursday, following the risk-off sentiment overnight on Wall Street. All three major indexes of Wall Street dropped sharply on Wednesday, all over 2% loss. The Fed left its benchmark interest rate near zero and kept other policies unchanged, as widely expected, but traders felt like a bit negative towards about it. Some analysts believe that investors actually expected “more” from Fed and now the overall optimism in the market is faded out.
Overnight, all three major indexes of Wall Street were up, of which the Dow rose to a new closing high, the S&P 500 gained around 1.4%, and the Nasdaq jumped almost 2%. Shares in Asian markets generally closed up on Thursday, following the Wall Street record highs overnight. The European Stocks also climbed a bit in early trading session, reflecting bullish outlook of those investment markets.
Recently, traders are concerning about the rise of the bond yields, somehow reflecting the inflation expectations. The benchmark 10-year US Treasury yield broke 1% last week, touching a high of 1.18% on Tuesday, that causing uncertainty to the market. Despite Fed officials reminded that the monetary policy, likely saying QE, will remain supportive in the foreseeable future, the 10-year yield is still trading at 1% above.
The risk-on mode is quite clear as investment market is expecting the wins of Democrats in Georgia. Analysts generally believe that a Democrat-controlled Senate would benefit the economy overall, so that traders are betting on those riskier assets. The yield of the benchmark 10-year US Treasury climbed over 1%, the first time since the global pandemic started in the March of last year.
Obviously, investors are betting on the strong fiscal and continuous monetary support from the US while all the uncertainties around have been lowered, pushing the dollar index down to 90 level below.
In the FX market, Sterling jumped to 1.35 level against dollar as investors bet on the Brexit deal, that can avoid a market chaos next year of the UK’s economy. The euro also strengthened to 1.22 level. On the other hand, the safe-haven dollar is weakened due to the general bullish outlook of the global economy.
On Monday, Asian stock markets are generally bullish cautiously, following a mixed trade last Friday in Wall Street. Investors are now digesting those positive news of vaccine, boosting the risk appetite of the financial market worldwide. The approval of Pfizer Inc and BioNTech’s Covid-19 vaccine in the US sparked optimism of a faster economic recovery.
However, it is not really positive as the UK officials said this is just “agreement in principle”. The trade deal is not yet reached. Boris Johnson also warned that the Hard Brexit is still possible and he will just quit any further negotiation if no deal. Watching the GBP/USD trend, it is clearly that traders are still very cautious over the two “talks” above.
The dollar index dropped to 91.7 level on Monday, following the recent downtrend since November, declining from above 94 level. The dollar keeps testing a more than two-year low, that mainly driven by the vaccine optimism and the easing policies expectations of the US side.