Although global markets cheered the Bank of Canada’s (BOC) tapering, the risk-on mood gets multiple hurdles, most of them were already playing the background music.
Among them, Global Times (GT) signals that China will take further punitive measures against Australia, over its dumping of Beijing’s “Belt and Road” initiative, which comes up the first in Asia.
Following that, the Huffington Post comes out with the headlines suggesting US infrastructure talks mired in gridlock over scope, taxes. The news highlights differences among lawmakers over what counts as infrastructure and how to pay for it as the main cause of concern. “A group of Republicans, led by Sen. Shelley Moore Capito of West Virginia, is expected to unveil a $500-800 billion infrastructure proposal this week. But that topline number would represent a fraction of Biden’s broader $2-3 trillion infrastructure and jobs plan, which includes things like elder and child care, as well as affordable housing and school funding,” the report added.
Elsewhere, the UK’s Daily Express cheered zero fresh covid cases at the testing for a big event. Also on the positive side were early updates from the Johnson & Johnson’s single-shot COVID-19 vaccine phase 3 data signaling optimism over Friday’s decision over its usage by the US Centers for Disease Control and Prevention (CDC) and the Food and Drug Administration (FDA).
However, India, unfortunately, refreshes the record new infection level above 300K and pours cold water on expectedly upbeat sentiment. Furthermore, chatters over the requirement of third vaccine shots to gain the immunity over the covid also weigh on the sentiment. "Dr. Ozlem Tureci, co-founder and CMO of BioNTech, which developed a Covid vaccine with Pfizer, said she also expects people will need to get vaccinated against the coronavirus annually, like for the seasonal flu. That’s because, she said, scientists expect vaccine-induced immunity against the virus will decrease over time," said the CNBC.
It should, however, be noted that the challenges to the risk-on mood are yet to play their roles and the Wall Street benchmarks rose for the first time in the last three days by the end of Wednesday’s trading, mainly led by the BOC event.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.