All major US indices closed in the green on Tuesday, the first day of trading after the long weekend break. Strong earnings stimulus hopes, and vaccination distribution news boosted risk sentiment. Gold pushed beyond 1840 lifted by a weak US Dollar.
US Treasury Secretary nominee Janet Yellen in her confirmation hearing before the Senate Finance Committee stressed the need for further stimulus to support the economy. Ms. Yellen urged lawmakers to act big given the historically low-interest rates.
The need for stimulus comes as US Covid deaths rise above 4000,000.Even so, markets appear more focused on the post-Covid recovery and Biden’s pledge to ramp up the vaccination distribution..
Asia-Pacific markets trades mixed after Hong Kong’s Hang Seng Index (HSI) hit fresh multi-month highs and China’s Shanghai Composite declined by 0.83%, unnerved by a rise in covid cases in China.
The Australian Dollar is advancing versus the broadly weaker US Dollar after dropping near its January low earlier this week. The Westpac Consumer Confidence report revealed, a 4.5% drop from the prior month. While Australian consumers remain generally upbeat recent Covid clusters, border closures, and foreign Covid outbreaks weighed on sentiment.
The Aussie-Dollar was unmoved by the report. The survey’s Unemployment Expectations Index also pointed to a worsening outlook.