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

California Lockdown, Impeachment, Chinese Stock Mania - What's up in Markets

EconomyJan 25, 2021 06:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Geoffrey Smith 

Investing.com -- California is set to lift its stay-at-home order, while national infection rates and hospital admissions hit their lowest in weeks. Donald Trump’s second impeachment reaches the Senate, while President Joe Biden is set to continue his America First policy in government procurement. China’s retail investors blow a bubble, and a rival to TikTok plans a $5 billion IPO in Hong Kong. Here’s what you need to know in financial markets on Monday, January 25th.

1. California to lift lockdown as case numbers fall

California Governor Gavin Newsom is expected to lift the statewide stay-at-home order, a change that could allow restaurants and gyms in many counties to reopen outdoor dining and services, the LA Times and others reported.

The news comes as the 7-day average for new infections of Covid-19 nationwide fell to its lowest since the start of December, while the number of those hospitalized with the virus fell to its lowest in six weeks.

The pandemic news from elsewhere was less bright: France, already running a nationwide 12-hour curfew, may go into full lockdown again later this week, the government confirmed on Monday. The U.K. is looking at tightening its borders further. Mexican President Andres Manuel Lopez Obrador became the latest world leader to test positive for the virus as Mexico's death toll from Covid-19 passed 150,000.

2. Biden's "Buy American" order 

President Joe Biden is expected to sign a new “Buy American” order, underlining the essential continuity of U.S. trade policy despite the radical change of tone expected from Donald Trump’s administration.

According to the Wall Street Journal, the order’s policies will include tighten government procurement rules to make it harder for federal agencies to buy imported goods and will revise the definition of American-made products, raising local-content requirements.  

Biden’s policy initiatives will continue to compete for attention as the House of Representatives sends the articles of Donald Trump’s second impeachment to the Senate, most likely later Monday. Some have speculated that the fresh impeachment trial will make it harder for Biden to gain bipartisan approval for his $1.9 trillion stimulus package.

3. Stocks set to open higher; Dallas, Chicago Fed surveys due

U.S. stock markets are set to open the week higher on the back of the improving news flow from the pandemic and confidence in sustained high liquidity, given the loose state of U.S. fiscal and monetary policy. The latter is expected to be reaffirmed on Wednesday after the Federal Reserve’s latest policy meeting.

By 6:30 AM ET (1135 GMT), Dow Jones Futures were up 8 points, or less than 0.1%, while S&P 500 Futures were up 0.3% and NASDAQ Futures were up 1.0%, supported by the ongoing enthusiasm for semiconductor stocks in particular.

Kimberly-Clark is the only earnings release of note in a quiet session that precedes a veritable orgy of updates over the rest of the week. The Chicago and Dallas Fed regional surveys are due at 8:30 AM ET and 10:30 AM ET, respectively.

4. Bubbles in China 

Retail investor mania is alive and well, not just in the U.S.  Tencent Holdings Ltd (HK:0700) stock in Hong Kong shot up over 10% in a move powered by retail action in the futures and options market.

The move had no visible single trigger, but concerns about Beijing’s attitude towards the immensely rich and influential tech giants in China have eased since Alibaba (NYSE:BABA) founder Jack Ma reappeared in public for the first time in over two months last week.  Tencent  (OTC:TCEHY) stock has now gained 30% in two weeks, adding some $230 billion in market cap in the process.

Bubble vibes were also out in force with the announcement that short-form video company Kuaishou Technology began marketing an IPO that it hopes will raise $5 billion and value the company at over $60 billion.

5. Oil regains momentum despite China lockdown concerns

Crude oil prices recovered some momentum after last week’s sell-off. By 6:40 AM ET, U.S. Crude futures were up 0.8% at $52.67 a barrel, while Brent futures were up 0.5% at $55.55 a barrel.

Fears over a hit to Chinese demand continue to bubble away, given lockdown in various regions (the city of Tonghua on the North Korean border has reportedly announced food shortages since being locked down five days ago).

Positioning in the market looks slightly less stretched after CFTC data showed a drop in net long positions in futures to its lowest since November.

California Lockdown, Impeachment, Chinese Stock Mania - What's up in Markets
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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 (18)
Cathy Bartlett
Cathy Bartlett Jan 30, 2021 3:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
XI inspired article...
Anthony Anthony
Anthony Anthony Jan 25, 2021 6:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
People in caliiFuknia can't lean. Lift the lock down today, next week covid case will triple.
Shawn Xi
Shawn Xi Jan 25, 2021 3:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bubbles in China? Why single out one country?
Mc Kong
Mc Kong Jan 25, 2021 3:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You are more than right. Simply bias
Art Fire
Art Fire Jan 25, 2021 3:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The Communist genocide by XI And the chinese government most like
Bobby Hall
Bobby Hall Jan 25, 2021 3:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think China is going to be more and more of interest to investors as China reaps the benefits of investing in our politicians.
alkesh kumar
alkesh kumar Jan 25, 2021 11:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Till Morning "Stimulus offset Pandamic" Journalist now go back to "Pandamic Offset Stimulus"
Gabriel Aidar
Gabriel Aidar Jan 25, 2021 11:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nao tem mais essa top 5 noticias em BR ???
Akhil Patel
Akhil Patel Jan 25, 2021 10:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good
Eudon Hickey
Eudon Hickey Jan 25, 2021 10:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So funny....”Buy america” sounds a lot like Trump’s “make america great again/america first”
Yep YepYepYep
Yep YepYepYep Jan 25, 2021 10:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yeah, but with a lot less *****in it...
Yep YepYepYep
Yep YepYepYep Jan 25, 2021 10:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yeah, but with a lot less ****in it...
SHAHBAZ AHMED
SHAHBAZ AHMED Jan 25, 2021 8:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good
Jim Hyde
8646 Jan 25, 2021 8:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
interesting how the large cities also opened up dining and other restrictions - the day after the inauguration. shows that politics takes precedent over businesses and livelihoods.
Rich Golf
Rich Golf Jan 25, 2021 8:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Been that way since foundation
Kevin Frazier
Kevin Frazier Jan 25, 2021 8:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
why would that matter that it happened after inauguration? most elections finished in early november after which covid got worse.
Daniel Lu
Daniel Lu Jan 25, 2021 8:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Western market has Santa rally while China expects new year of ox rally. This bullish mania rings a bell.
Krasimir Balakov
Krasimir Balakov Jan 25, 2021 7:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
incredible,Bidden reduced the numbers with 1st week!!!
Fernando Lazarini
Fernando Lazarini Jan 25, 2021 7:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hahahahha good one. I noticed it as well.
Miguel Massens
Miguel Massens Jan 25, 2021 7:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I heard they changed the parameters for what is considered a positive case.
Abel Loya
Abel Loya Jan 25, 2021 7:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
We got a Super Biden anti-covid!!
Ming Li
Ming Li Jan 25, 2021 7:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If one cheats his way to WH, what do you expect?
Mike Chen
Mike Chen Jan 25, 2021 7:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China has learn the american way to inject money into the stock market and boost the economy.
Anakin Skwk
Anakin_Skwk Jan 25, 2021 7:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The up of Tencent's share price is partly driven by money from new-established funds in China mainland. Recently, lots of funds established in China mainland and their money is flowing to Hong Kong market to buy big companies's shares, such as tencent, alibaba, SMIC, Nongfu Spring, Great Wall Automobile.
John Eckart
John Eckart Jan 25, 2021 7:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Newsom needs his ********whipped
Robbie Sinclair
Robbie Sinclair Jan 25, 2021 7:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
these bubbles are tools, to devalue debt. long live the bubble
LLamaNation Gamer
LLamaNation Gamer Jan 25, 2021 7:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This what you get when people have no where to go but play the stock market.
Junior Cruz
Junior Cruz Jan 25, 2021 7:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
All of a sudden we are at record low.
Scott Bailey
Scott Bailey Jan 25, 2021 7:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Surprise Suprise Suprise
Luu Hung
Luu Hung Jan 25, 2021 7:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's not bubble. It's a balloon
Trader UJ
Trader UJ Jan 25, 2021 7:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's not a balloon - it's a bouncy house
Danny Danny
Danny Danny Jan 25, 2021 7:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
More like a Hydrogen Bomb.
Jay Rhyder
Jay Rhyder Jan 25, 2021 7:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
balloons pop just like bubbles
 
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