Overnight we saw another strong night from the US as markets continue to rebound the pullback that started with the short squeeze on GameStop. Investors attention is back on the US government as the US Democrats continue to push for more Covid stimulus aid. The FED continues to hold strong on their extremely accommodative stance.
Yesterday we saw the RBA double bond-buying and reinsured that interest rates will no go up until 2024, and that will not happen unless they hit their targets. This means inflation will need to go back between 2-3% and stay stable in that range. Employment will also need to normalize.
Reddit targets GME, silver etc pulled back strongly overnight, as the game between the hedge funds and retail Reddit traders continues. As expected though this news will continue to disappear into the background as investor focus back on what’s important.
US company reporting continues to overall beat expectations with Amazon and Google both beating overnight. There is plenty more reporting to come over the next week, with local reporting also kicking off today with AMC (Amcor).
With an explosive move higher in the U.S last night, our market is set to rally over 50 points on open, putting us just above 6800 and near our post-fall highs. It is likely we go on to test these highs in the coming days, if not today if U.S futures remain strong during our session.
The Reddit fiasco seems to be coming to an end, and with global markets refocusing on the broader market environments, positive sentiment has returned and hopefully for good. This can be threatened if the U.S government continues to drag its feet on relief stimulus.
US shares rose strongly for the second session in a row overnight. Company earnings reporting was very strong overnight, with Amazon and Google’s parent Alphabet both reporting better than expected earnings and revenues. Amazon also announced that Founder and CEO Jeff Bezos would step down from the CEO role to assume the position of executive Chairman of the board.
All major sectors of the US markets closed higher overnight, with Financials stocks the strongest performers. Economic data from the US overnight showed that there was a greater drawdown in US oil inventories than expected. We also received news that US democrats would begin the process of trying to pass their $1.9 trn stimulus bill through Congress and the Senate.