Today marks the start of Biden's 4 year term in office, taking over arguably the hardest challenge of his life to reform, implement and shape the United States and unify them after the recent divide. This will be no small task given the state of the nation, but he is in the position due to the policies and promises, the first 100 days in charge are always crucial for a new president. We’re likely to see him push a lot of stimulus and raise debt to fund that stimulus to help the average person, from a fiscal point of view he plans to raise tax to generate more revenue. All of these factors will start coming into the market, from a stimulus point of view, it is being priced in at the moment as we see the American Indices breaking highs. One thing is for sure, investors do seem to want Biden, at the moment anyway. We just plead for you to stay off Twitter.
With yesterday's anticipated event behind us, we have quite a bit of Economic news coming out of the market. Australia had their unemployment figures released which came back better than expected with unemployment dropping to 6.6%. Japan decided to keep interest rates at -0.10%, but put a major emphasis on the second wave that they are currently going through.
For the remainder of the day we’ll wait in anticipation to see what happens with the ECB Monetary Policy Statement, and the press conference following. There won’t be much anticipated from an interest rate cut perspective, but it will be interesting to see how they plan to confront the second wave currently in effect. We round off the day with unemployment claims out of the US, and CPI out of New Zealand.
So for today keep a close eye on the ECB Monetary Policy statements, that should be the biggest driver for the day.