· Janet Yellen at top of Treasury would give boost to bull investors, Jim Cramer says
“Over and over again, she made the case for a full-employment agenda to help people who don’t have jobs and need to put food on the table. That means Yellen wants to spend a lot of money,” the “Mad Money” host said.
Yellen, who served as Federal Reserve chair from 2014 to 2018, told lawmakers that she would prioritize, if confirmed for the post, American workers and rejuvenating the workforce in the country. Biden, whose presidency will start Wednesday, has proposed a new $1.9 trillion stimulus plan to give the economy a boost as the U.S. continues to battle through the coronavirus pandemic.
The spending would be “fabulous for the stock market,” Cramer said.
· Analysis: Pricey U.S. stock valuations put burden on earnings to keep rally going
U.S. corporate results and profit outlooks are becoming increasingly important in sustaining investor optimism in a stock market rally that has driven valuations close to a 20-year high.
Stock “return expectations are greatly dependent on the earnings rebound in 2021,” said Chris Haverland, global asset allocation strategist at Wells Fargo Investment Institute.
S&P 500 company earnings are expected to rise by 24% in 2021 after falling 15% in 2020, according to Refinitiv data as of Friday, with reports that could shed light on prospects for 2021 starting to come in more heavily this week.
· Asian shares hit a record high after Yellen calls for big spending
Asian shares climbed to a record high on Wednesday after U.S. Treasury Secretary nominee Janet Yellen advocated for a hefty fiscal relief package to help the world’s largest economy ride out a pandemic-driven slump.
At her confirmation hearing on Tuesday, she said the benefits of a big stimulus package are greater than the expenses of a higher debt burden.
U.S. President-elect Joe Biden, who will be sworn into office on Wednesday, last week laid out a $1.9 trillion stimulus package proposal to boost the economy and speed up the distribution of vaccines.
MSCI’s Asia-Pacific index outside Japan rose 0.81%, reaching its highest level ever.
Stocks in major Asia-Pacific markets were mixed on Wednesday, with Hong Kong-listed shares of Chinese tech juggernaut Alibaba surging following the reappearance of founder Jack Ma.
Shares of Alibaba listed in the city surged more than 5% in afternoon trade after Ma appeared in a video posted on Chinese social media addressing rural teachers as part of one of his charity foundation’s initiatives. It was his first appearance following weeks out of the spotlight as his companies face increased regulatory scrutiny.
Shares of other Chinese tech firms listed in Hong Kong also saw strong gains, with Tencent up 3.13% while Meituan soared more than 6%. The broader Hang Seng Tech index gained 3.64%.
Nikkei 225 closes lower by 0.38% at 28,523.26
Hang Seng Index near 30,000 level as Alibaba surges, more China funds add to record inflows
Hang Seng Index rises to as high as 29,984 points, less than 0.1 per cent of surpassing the psychological level last seen on May 3, 2019
Technology stocks rally with Alibaba pacing the winners; Meituan, Tencent and bourse operator HKEX reach new highs
The gauge pulled back to 29,905.63 at 2.46pm local time. The market has risen 9.2 per cent this year, the best start to a year since 1985.
Blue-chip stocks in Hong Kong have now appreciated 9.7 per cent this year in the best start to a year since 1985. A positive end in January will complete a four-month advance, the best winning sequence since April 2019.
The Shanghai Composite Index rose 0.4 per cent at 3581.24 for a 3 per cent gain so far this month. The CSI300 index, which tracks the biggest companies on Shanghai and Shenzhen bourses, advanced 0.7 per cent.
The U.S. Nasdaq futures gained 0.5%, with Netflix shares jumping 12.2% after the bell as the streaming pioneer reported strong growth in subscribers and projected it will no longer need to raise debt.
· Alibaba's Jack Ma makes first live appearance in three months in online meet
Alibaba Group founder Jack Ma met 100 rural teachers in China via a live video meeting on Wednesday morning, in the businessman’s first appearance since October, triggering a sharp jump in the Hong Kong listed shares of the e-commerce giant.
· European markets edge higher ahead of Joe Biden’s inauguration
European stocks opened higher Wednesday, ahead of the inauguration of President-elect Joe Biden.
The pan-European Stoxx 600 climbed 0.2% in early trade, with the technology sector adding 1.3% to lead gains while health care and utilities stocks slipped 0.3%.
Investors around the world will be watching Joe Biden’s inauguration in Washington on Wednesday, which comes after a tumultuous few months of political upheaval in the U.S.
Biden will succeed President Donald Trump as the 46th president of the United States shortly after noon ET. His inauguration speech will focus on the need to bring the country together on the heels of a violent riot on Capitol Hill and amid extreme partisanship in Congress.
Reference: CNBC, Reutersม Forex Live, SCMP
Thai
Eng