What awaits the markets this week?
What awaits the markets this week? What important developments will we follow as of tomorrow? Here are the important developments that will be the focus of the markets this week ...
On Monday, the first doses of the coronavirus vaccine developed in partnership with Pfizer and BioNTech across the USA will be administered. In the country where the coronavirus epidemic is most common and the death rate is very high, the vaccine will be distributed to 145 locations in the first place.
It is predicted that the first group of vaccination will be healthcare workers and elderly people in long-term care units. It is stated that if the Moderna vaccine is also approved, millions of US citizens can be vaccinated this month. Other companies with advanced vaccines include AstraZeneca and Johnson & Johnson, along with the University of Oxford.
In addition to the vaccine excitement in the USA, there is also an expectation for an incentive package. The incentive package talks, which hit a stalemate due to the intervening presidential elections, still have not come to a conclusion. The Senate approved a provisional government funding, after Congress failed to deliver on Friday, another deadline for the incentive package.
On the other hand, the US Federal Reserve (FED) is preparing for the last monetary policy meeting (PPK) of 2020. In November, the US jobs report showed the slowdown in the labor market, while unemployment claims data recorded the highest levels since September.
Electric Vehicle Manufacturer Tesla to Enter S&P 500 Index
Tesla will enter the S&P 500 index on Friday, and investors forecast an epic $ 50 billion trade in the electric car maker firm's shares in the last minutes before closing.
The company's stock market value is around $ 600 billion and its shares appear to have increased 600 percent so far this year. Tesla (NASDAQ: TSLA) shares have increased by 50 percent since the index entry was announced in November. JPMorgan analyst Ryan Brinkman said Tesla's shares were valued "by a large scale".
Brexit Talks
No conclusion has yet been reached in the Brexit talks. Therefore, it was decided to continue the negotiations with overtime. Looking at the process that will end on December 31, it seems quite possible for Britain to leave the EU without a deal.
Unless an agreement comes out from the meetings extended until Thursday, the Bank of England (BoE) will have to focus on increased risks to the economy and additional incentives and below-zero interest rates.
This article is contributed by Reuters and Investing.com