Frankfurt In anticipation of the coronavirus pandemic being quickly overcome, investors are stocking up on US stocks. The leading indices Dow Jones, Nasdaq and S&P 500 rose by 0.4 percent each at the opening on Wednesday.
“The prospect of faster and more extensive vaccinations is a boost of confidence to the markets as the fight against the coronavirus intensifies,” said financial markets expert Janet Mui of asset manager Brewin Dolphin. The UK had previously approved another vaccine.
Even the temporary blockade of a planned increase in government economic aid to cushion the consequences of the pandemic hardly dampens the mood, said Rabobank investment strategist Piotr Matys. “The market believes that US households will receive more aid in a few months, even if the government withdraws the one-off increases.”
The introduction of vaccines against the coronavirus and the passage of the new $ 900 billion stimulus package helped improve market sentiment already in the final weeks of the year.
But increased numbers of Covid-19 infections and the appearance of a rapidly spreading variant of the virus have recently dampened optimism. In addition, economic data showed that the upswing is slowing. The Washington dispute over the size of the stimulus packages was also in favor of no support for the markets.
“This back and forth, vaccine against virus, politics against economy, will stay with us for a while,” says Altaf Kassam, head of investment strategy State Street Global Advisors in Europe. “November was a great month for the markets and there was always a breather. December seems to be just that. “
The trading volume in the last week of December is also typically lower, as investors take a break during the holidays at the end of the year. The low liquidity can intensify market movements or lead to atypical trading sessions.
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