Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Opening Bell: Futures, Stocks Jump On Stimulus Signing; Dollar Dips, Gold Rises

By Investing.com (Pinchas Cohen/Investing.com)Market OverviewDec 28, 2020 07:50AM ET
www.investing.com/analysis/opening-bell-futures-stocks-jump-on-stimulus-signing-dollar-dips-gold-rises-200549017
Opening Bell: Futures, Stocks Jump On Stimulus Signing; Dollar Dips, Gold Rises
By Investing.com (Pinchas Cohen/Investing.com)   |  Dec 28, 2020 07:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
  • Stocks, Futures boosted after Trump finally signs the original, $2.3 trillion package
  • Alibaba shares drop in Hong Kong as the Chinese government cracks down

Key Events

US futures for the Dow Jones, S&P 500, NASDAQ and Russell 2000 and global stocks all popped on Monday, after President Donald Trump, on Sunday, finally signed the $2.3 billion stimulus package into law. The much-anticipated move built on the market's risk-on sentiment provided by the signing of a Brexit deal at the eleventh hour, just ahead of the Christmas holiday.

The dollar slumped and gold and oil edged higher.

Global Financial Affairs

After claiming he was delaying the bill because of the "disgraceful" low figure of $600 in fiscal relief that would be issued to individuals in the original package, Trump authorized the package yesterday, without it containing any changes. This will restore unemployment benefits and avert a partial government shutdown which would have occurred beginning Tuesday.

Though all US contracts are rising this morning, futures on the Russell 2000 advanced about twice as much as the broader market, extending the cyclical rotation.

Energy and carmakers—sectors pressured by lockdowns—led the STOXX Europe 600 higher this morning, in tandem with US small cap, bolstering the case that stocks sensitive to economic conditions are improving.

Almost all the main Asian benchmarks pushed higher. Japan’s Nikkei outperformed, (+0.75%), nearing a three-decade high on holiday-thinned trading. However, the cyclical rotation was not obvious in Japan, as technology stocks rose alongside healthcare, utilities and industrial machinery makers.

Hong Kong’s Hang Seng had the dubious honor of being the only major regional benchmark in the red, (-0.25%), as a selloff resumed, weighed by a regulatory crackdown, in which the PBoC instructed Jack Ma's Ant Group to overhaul its lending and other financial practices even as Chinese regulators have launched an investigation into anti-competitive practices as Ma's other company, internet commerce giant Alibaba Group Holdings (NYSE:BABA). 

Alibaba Daily
Alibaba Daily

Shares of Alibaba (HK:9988) listed in Hong Kong plunged for a second consecutive day. The stock dropped 8% this morning on heavy trading volume—despite the company having boosted its share buyback program to $10 billion. Today's move extended the downside breakout of a down sloping H&S top, demonstrating weakness as it lacked sufficient demand to form a proper right shoulder.

On Thursday, ahead of the long holiday weekend, US stocks closed higher, but finished the week lower constrained by stimulus uncertainty. 

Yields, including for the US 10-year Treasury note, edged higher. The dollar declined to trade at the bottom of the session.

DXY Daily
DXY Daily

Yesterday's stimulus news spurred the completion of the second consecutive bearish pattern, as the passage of the largest fiscal aid bill in American history, will flood the economy with cheap cash.

Gold was pushed higher on dollar weakness.

Gold Daily
Gold Daily

This helped the precious metal complete a bullish flag. However, it found resistance at the channel top, as risk-on siphoned capital away from gold. Note, the flag follows a H&S bottom—both of which threaten the falling channel.

Bitcoin climbed again after yesterday’s first dip in four days.

BTC/USD Daily
BTC/USD Daily

The decline came after the cryptocurrency posted a new all-time high above $28,000 on Sunday. Yesterday's high upper shadowed-shooting star signaled a pullback, confirmed by the negative divergences in volume and momentum indicators.

Oil rose for a third day.

Oil Daily
Oil Daily

However, the commodity's RSI has been providing negative divergence. The momentum-based indicator may be topping out, suggesting a pullback in the price.

Up Ahead

Market Moves

Stocks

Currencies

  • The Dollar Index fell 0.3% to 90.04.
  • The yen was at 103.46 per dollar.
  • The euro rose 0.3% to $1.2223.
  • The pound was little changed at $1.3567.
  • The offshore yuan was at 6.5255 per dollar, down 0.2%.
  • The Aussie advanced 0.2% to 76.20 US cents.

Bonds

The yield on 10-year Treasuries rose three basis points to 0.95%.

Commodities

  • West Texas Intermediate crude fell 0.4% to $48.02 a barrel.
  • Gold advanced 0.2% to $1,887 an ounce.
Opening Bell: Futures, Stocks Jump On Stimulus Signing; Dollar Dips, Gold Rises
 

Related Articles

Opening Bell: Futures, Stocks Jump On Stimulus Signing; Dollar Dips, Gold Rises

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Troy Coureton
Troy Coureton Dec 29, 2020 12:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Excellent bubble we have! Lets pump this garbage another 500 points if we can!
Pinchas Cohen
Pinchas Cohen Dec 29, 2020 12:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yes, sir
Brad Smith
Brad Smith Dec 28, 2020 1:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thanks Pinchas for more excellent updates. It looks like the whole stimulus fiasco is finally done and the shutdown has been averted. The stimulus itself is somewhat small but averting the shutdown should help a bit.
Pinchas Cohen
Pinchas Cohen Dec 28, 2020 1:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You're welcome, Brad, and thanks for your feedback.
Kevin Parker
Kevin Parker Dec 28, 2020 8:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Cant wait to see earnings . Going to be a *******show. Foreclosure cuty. Keep pumping a fake market with fake money . Usa and peso will be the same. Joke of the world is the usa.
Brian G Brown
Brian G Brown Dec 28, 2020 7:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I don't think the $600 US citizens are getting will do much for the economy, but maybe the $1800 being sent out to illegals might, if they don't send it back home.
Juan Cassanello
Juan Cassanello Dec 28, 2020 6:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Excellent
Pinchas Cohen
Pinchas Cohen Dec 28, 2020 6:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thanks, Juan.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email