6 Min Read
NEW YORK (Reuters) - The U.S. stock market is mostly unfazed by the political turmoil in Washington and fears of violence ahead of President-elect Joe Biden’s inauguration, with investors squarely focused on the probability of another sizeable stimulus package to boost economic growth and the rollout of coronavirus vaccines.
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The benchmark S&P 500 index stands near record highs while bond yields have rallied to their highest levels since the pandemic began, despite last week’s shocking assault on the U.S. Capitol by supporters of President Donald Trump - an apparent divergence between the political and economic realities on the ground and market valuations.
CAD/CHF 1Q Forecast: Long CAD/CHF â A Combination of Risk Trends and Positioning 2021-01-02 04:00:00 Justin McQueen, Analyst
CAD/CHF 1Q Forecast: Long CAD/CHF – A Combination of Risk Trends and Positioning Advertisement
2020 has been a year like no other and seared into memory. Thankfully, with multiple vaccines scheduled to be rolled out and with global monetary and fiscal stimulus here to stay, 2021 looks to be a better year. As the vaccination process gets underway, negative tail risks are likely to recede, while lockdown measures will also continue to be eased, thus allowing for a brighter economic outlook. Much like 2020, with global interest rates at the zero bound, “RORO” (Risk On Risk Off) should remain a key driver for FX. As such, my trade of the year is to position that way with a bullish outlook on CAD/CHF.
5 Min Read
NEW YORK (Reuters) - Investors are gauging how far a rally in beaten-down energy shares could run, as an expected recovery for the coronavirus-hit economy clashes with skepticism about the long-term prospects of fossil fuels.
FILE PHOTO: The Charging Bull or Wall Street Bull is pictured in the Manhattan borough of New York City, New York, U.S., January 16, 2019. REUTERS/Carlo Allegri/File Photo
Energy shares overall soared nearly 27% in November, leading the charge among sectors expected to benefit from the broad economic revival promised by encouraging developments for several vaccines against COVID-19.
The longer term outlook for the sector, however, remains uncertain, as companies throughout the oil and gas supply chain face challenges from the increasing use of “green” energy sources such as wind and solar. Another concern is resistance among fund managers to investing in fossil fuel companies over environmental concerns.