Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

McConnell Defies Trump, U.K. OKs Astra Vaccine, Bitcoin ATH - What's up in Markets

Published 12/30/2020, 06:33 AM
Updated 12/30/2020, 06:34 AM
© Reuters.

© Reuters.

By Geoffrey Smith 

Investing.com -- Senate Leader Mitch McConnell thwarts Donald Trump’s plan for higher stimulus payments, the U.K. approves the AstraZeneca/Oxford University vaccine, and Bitcoin reaches another all-time high. Here’s what you need to know in financial markets on Wednesday, December 30th.

1. McConnell defies Trump’s stimulus call

President Donald Trump’s efforts to increase the part of the recent $900 billion stimulus package that is paid directly to households ran into the sand, as Senate Majority Leader Mitch McConnell refused to schedule a quick vote on the motion that passed the House of Representatives earlier in the week.

McConnell has now combined that initiative into a new bill that would combine increased payments with other provisions that House Democrats are sure to reject, such as the repeal of Section 230 of the Communications Decency Act (which gives social media platforms protection from legal liability for the content posted by their users) and a commission to look into Trump’s claims of election fraud which have been thrown by over 50 courts across the U.S. so far).

As such, the level of direct payments is likely to stay at $600, rather than the $2,000 demanded by Trump and approved by the House.

2  AstraZeneca vaccine gets first approval

The U.K.’s Medicines and Healthcare Products Regulatory Agency approved the use of the Covid-19 vaccine developed by AstraZeneca (LON:AZN) and the University of Oxford.

It’s the first formal approval for a vaccine which appears to be slightly less effective against the disease than those developed by Pfizer-BioNTech and Moderna (NASDAQ:MRNA), but which is set to play a much broader role in immunizing the world’s population, given that the company is selling it at cost while the pandemic continues, and can be stored at normal refrigeration temperatures, easing the challenge of mass distribution.

The move comes as U.K. hospitals are starting to run out of capacity for Covid-19 patients. Germany, meanwhile, registered over 1,000 deaths in a single day from Covid-19 for the first time.

3. Stocks set to rebound 

U.S. stock markets are set to open higher, after a modest setback late on Tuesday in response to Senate Leader McConnell’s effective blocking of higher stimulus payments.

By 6:30 AM ET (1130 GMT), Dow Jones futures were up 111 points, or 0.4%, while S&P 500 futures were also up 0.4% and Nasdaq 100 futures were up 0.3%.

Corporate newsflow remains at a trickle, but there will be U.S. data in the shape of the Chicago Purchasing Managers Index at 9:45 AM ET and November’s existing home sales figures at 10 AM.

4. Digital currencies set fresh highs

Bitcoin continued its triumphant march higher, topping $28,000 for the first time against a background of fading trust in the dollar, whose long-term debasement through the U.S.’s enduring current account and budget deficits is set to accelerate.

By 6:30 AM ET, Bitcoin was trading at $27,921, up 4.7% on the day, having earlier traded as high as $28,587.

The fundamentals for the digital asset remain the same: no country will accept taxes to be paid with it, and merchants overwhelmingly refuse to set prices in something with such a volatile price. However, its lack of practical applications is being overshadowed by an ever-broader willingness on the part of institutional money managers to speculate on it, reassured by the prospect of Bitcoin supply remaining essentially fixed.

Bitcoin isn’t the only digital asset currently enjoying itself. Ethereum has rallied over five-fold this year, although it was essentially flat on Wednesday at $728.81.

5. Last U.S. oil inventories of the year

The price of crude oil, which has lots of practical applications, rebounded  modestly overnight, supported by American Petroleum Industry data showing an unexpectedly large drop in U.S. crude inventories.

The U.S. government’s inventory data are due at 10:30 AM ET, as usual. Analysts warn against reading too much into the last weekly data of the year, which tend to be distorted by accounting and tax issues.

By 6:30 AM, U.S. crude futures were up 0.8% at $48.38 a barrel, while Brent futures were up 0.7% $51.59 a barrel.

Latest comments

This great move by McConnell Just basically handed Georgia to the democrats ... and the senate Good luck America because you will need it now more than ever
pet dog obey no more
Americans need to work hard and wear masks rather getting free money. Good Work McConnell.
All currency is screwed. They may as well give as much as possible until it implodes and we get a new world currency.
pratik, as a troll, where you from and what do you to earn a living beside being a troll?
Mitch McConnell has to goooo! It's old school outta touch politicians like him that work against hardworking American people! Trump 2024!!,
Euro should be far less. Traders should take profit from Bitcoin and Stocks and buy Dollar which is super low now.
buy gold and silver
The dollar is backed by the US Govt. Bitcoin’s backed by nothing.
Buy gold and silver if you like poverty.
Mcconnel is a traitor...
Print $$. Then the USD will be worthless
McConnell is a turtle, the people needs moneeeeeyyy
why talk *****about urtles ?
Thrown by 50 courts but investigated by none. It's time for an investigation.
Turtle needs to go. ASAP
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.