E.t was the last full week of the stock market for investors with Donald Trump as American President. Joe Biden will take over the office next week. But the stock market trades the future, and it has long been priced in for the Democrat to move into the White House. The markets are therefore not impressed by the fact that the assumption of office is getting closer.
The US $ 1.9 trillion stimulus package announced by Biden on Thursday also caused little cheer on Wall Street. After all, the $ 2 trillion sum had been around for a while. After the record rally last week, the stock exchange has been on hold for the past few days. On a weekly basis, the major American indices are slightly in the red.
By contrast, market participants are more excited about the upcoming reporting season in America. If the results of the corporations are better than expected by analysts, this could provide new momentum in the markets. The big American banks Citigroup, JP Morgan and Wells Fargo are the prelude to this.
In Europe, too, there is a minus in front of many major indices at the end of the week, as the pandemic is worsening in many regions. While the stock exchanges celebrated the successes of the vaccine manufacturers and an abrupt end to the corona crisis early on, the realization is gradually gaining ground that the pandemic will probably rage even longer than hoped – with deeper cuts for the economy. The leading indices in Great Britain, France and Spain fell by up to 1.8 percent during the week.
In Germany, the Dax could not defend the record high of 14,000 points, which it reached for the first time last week, until the end of this week. In the late afternoon, the leading German index was down 1.2 percent at 13,817 points. And the outlook remains bleak. A meeting between Chancellor Angela Merkel and the country leaders has been brought forward to next Tuesday. Stricter measures to contain the crisis are expected.
Market participants have mixed feelings about China. Positive export figures from the People’s Republic boosted the share prices of German car manufacturers in particular this week. At times, Volkswagen stocks increased by up to 4 percent. At the same time, one of the largest corona outbreaks in months occurred in the Chinese province of Hebei. A second wave could also further dampen sentiment in the domestic markets.