6.50am: Positive first week of 2021
The FTSE 100 index is set to add to the previous session’s modest gains on Friday, albeit ahead of the US jobs release for December.
Spread betting quotes point to the UK blue-chip index opening around 50 points higher at 6,907.
Yesterday, President Trump – or someone purporting to be him – acknowledged that he had lost the election and that a new administration would take over on January 20, 2021.
All it took was for social media companies to take his accounts away from him.
“With the Democrat clean sweep confirmed, financial markets hitched themselves onto the last stimulus train out of town overnight, helped along by a contrite (by his standards) President Trump promising an orderly transition of power. Equity markets powered higher, oil gained, and the US Dollar debasement conspiracy theorists pumped Bitcoin to a new high above $40,000.00 per digital coin,” summarised Jeffrey Halley as OANDA.
Overnight, the Dow Jones industrial average rose above 31,000, closing at 31,041, up 212 points. The index has recently added 1,000 points in record time – just 29 trading days.
The S&P 500 index hardened 56 points to 3,804 and the Nasdaq Composite put on 327 points at 13,067.
Asian markets picked up the baton on Friday with Japan’s Nikkei 225 594 points to the good at 28,085 and Hong Kong’s Hang Seng 210 points firmer at 27,759.
Trading in London could possibly be subdued until the US jobs data is out, however.
“Economists are expecting the headline reading for December to be 71,000, which would be a huge fall from the 245,000 registered in the previous report. In November, the unemployment rate fell to 6.7% – the lowest reading since March – but the consensus estimate for December is 6.8%. Average earnings are tipped to hold steady at 4.4%,” reported CMC’s David Madden.
“Given the upheaval in the labour market, the participation rate has been given extra attention. The metric fell from 61.7% in October to 61.5% in November and that could be seen as a sign that there is falling confidence in the jobs market. During economic downturns, some people who are out of work get so feed up the weak labour market they stop searching, and that contributes to a falling participation rate,” Madden explained.
Closer to home, the Halifax house price index report will be revealed at 8.30am and economists are expecting the index to have risen 0.5% month-on-month, after increasing by 1.2% in November.
Around the markets:
- Sterling: US$1.3568, up 0.04 cents
- Gold: US$1,908.70 an ounce, down US$4.90
- Oil: US$54.66 a barrel, up 28 cents
- Bitcoin: US$38,279, down US$1,317
6.45am: Early Markets – Asia / Australia
South Korea’s Kospi led gains among the Asian markets on Friday by jumping 3.97% higher after Wall Street surged to new record highs overnight.
The Hang Seng index in Hong Kong gained 1.20% but mainland Chinese stocks dipped with the Shanghai composite shedding 0.29%.
In Japan, the Nikkei 225 advanced 2.36% while Australia’s S&P/ASX 200 rose 0.68%.
Proactive Australia news:
Creso Pharma Ltd (ASX:CPH) (OTCMKTS:COPHF) (FRA:1X8) has welcomed recent news of the US Democratic Party winning the balance of power in the US Senate – an outcome which increases the likelihood of the decriminalisation of cannabis and passing of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act.
Venture Minerals Limited (ASX:VMS) has recently completed a trenching program that delivered substantial mineralised intervals of up to 31 metres at 1.0 g/t gold and 20 metres at 0.6 g/t at the 100% owned Kulin Gold Project in Western Australia.
Auteco Minerals Ltd (ASX:AUT) (OTCMKTS:MNXMF) has appointed experienced mining executive Darren Cooke as its new chief operating officer to lead the campaign to grow the company’s 1-million-ounce resource at the Pickle Crow Gold Project in Canada.
Auroch Minerals Ltd (ASX:AOU) (FRA:T59) is fully funded headed into the new year after raising $2.9 million in late September last year to fund aggressive exploration plans across its high-grade nickel assets.
engage:BDR Ltd (ASX:EN1) is well-funded after raising $2.37 million through a placement and almost $1.9 million through a strongly supported share purchase plan in December 2020 with the aim of driving growth in the CTV (Connected TV) and advertising realms.
Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) (FRA:LK1) has formally begun preparing a definitive feasibility study (DFS) for Kachi Lithium Brine Project in South America’s Lithium Triangle from which the company aims to produce clean lithium for the growing new-age battery market.