Investing.com - Joe Biden will return the United States back to the Paris Climate Agreement and to the World Health Organization; Also published data on weekly applications for unemployment benefits and monthly data on the start of construction of new housing will also be published; The stock market is configured to open up after record high closure; The ECB will hold his political meeting and press conference, and oil prices after an unexpected increase in stocks in the United States fall. That's what you need to know about the financial market on Thursday, January 21.
1. The first steps of Byjden
The United States again put its signature at the Paris Climate Agreement and will remain a member of the World Health Organization supported by the UN, canceling the two important political actions of the Trump administration.The decree on joining the Paris Agreement opens the way to a broader reorientation of the US economic policy, which will fundamentally change the country's energy landscape. However, in many respects, it will simply be fixed at the official level, what is already doing American companies.
Perhaps more practical significance will have a perspective marked on Wednesday by the US Chief Physician Anthony Faucci: the country will resume the implementation of the WHO plan aimed at accelerating the spread of Vaccines from COVID-19 around the world. WHO has expressed sharp criticism of insufficient efforts to ensure access to the vaccines of emerging markets, which, albeit more poor, but occupy a key place in the global economy.
2. Applications for unemployment allowance and the beginning of the construction of new housing
Biden will make an immediate audit of the state of the economy with reality through weekly data on applications for unemployment benefits, which will be released at 08:30 in the morning (13:30 GRINTVICH), and is expected, the number of primary applications for the manual will decrease only slightly after 965 thousand last week. It was the highest figure since August.
Analysts expect that the number of primary applications for unemployment benefits will be 910 thousand, and secondary - 5.40 million, which is about 130 thousand more than last week.
At the same time, the first data of this year should appear on the commissioning of new housing and on construction permits.
3. The market will open with growth; All attention to IBM and Intel
The stock market in the United States at the opening, which will take place a little later, will grow after a record high at the time of closing on Wednesday due to the optimism regarding the consequences of the practically free spending of funds with the new administration in Washington.By 06:30 in the morning East time (11:30 in Greenwich), Dow Jones futures rose by 42 points or 0.1%, and S & P 500 futures rose by 0.2%. Futures on the NASDAQ, which on Wednesday were particularly successful thanks to Netflix and other streaming companies, increased by 0.4%.
Intel and IBM will report on profits after closing, while Union Pacific, Travelers, Match Group and Baker Hughes will report their results earlier.
4. ECB meeting
The European Central Bank will announce the results of its last meeting on monetary policy at 07:45 in Eastern Time (12:45 in Greenwich). No changes in his policy are expected, since the bank has already presented a multilateral package of benefits at its last meeting in December.
Attention will be focused on the comments of the head of Kristin Lagard at its virtual press conference, and willing to represent everything that it may say about Italy. Dispansions on Italian bonds over the past weeks only moderately grew, despite the last political crisis, as a result of which the government remained without most in parliament.
Previously, the Central Bank of Norway hinted that it would be possible to raise interest rates until the end of this year. The Norwegian economy survived the crisis because of COVID-19 better than most of others due to the low population density and a well-funded health system.
5. Oil prices fell after shock due to stocks
Rash oil prices fell from a 11-month maximum after the data of the American Oil Institute (API) showed an unexpected increase in oil reserves in the United States last week.
By 6:30 in the morning East time (11:30 GRINVICHI), futures for American wet oil WTI fell 0.7% to $ 52.92 per barrel, and Brent futures fell by 0.8% to $ 55.63.
The API reported that last week the oil reserves rose by 2.56 million barrels. Official government data must be published on Friday: this week they are delayed due to the celebration of Martin Luther King and inauguration.
Author Jeffrey Smith
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