Investing.com | Dec 16, 2020 12:05
By Peter Nurse
Investing.com - U.S. stocks are seen opening higher Wednesday, continuing the gains of the previous session, with lawmakers discussing another Covid relief package and the Federal Reserve set to conclude its latest policy-setting meeting.
House Speaker Nancy Pelosi met with Senate Majority Leader Mitch McConnell and other top lawmakers late Tuesday in a bid to reach an agreement on a comprehensive government funding bill as well a coronavirus relief package.
Confidence is growing that the two sides will be able to come to a compromise as the week draws to an end, with a $748 billion Covid-relief proposal, including aid for vaccine distribution and unemployed benefits, appearing to have bipartisan support.
The Federal Reserve concludes its final monetary policy meeting of 2020 later Wednesday, with the central bank potentially laying out plans for additional asset purchases in order to provide more support for the pandemic-stricken economy.
These decisions over additional fiscal and monetary stimuli are occurring while the pandemic surges around the country. The U.S. has recorded over 300,000 virus-related deaths, with daily cases and fatalities running at record levels.
On a more positive note, Moderna 's (NASDAQ:MRNA) Covid-19 vaccine is expected to receive regulatory authorization this week, adding to Pfizer’s drug, which received approval late last week and is currently being rolled out to the population.
The main economic release Wednesday will be the November retail sales figure. A drop of 0.3% from a gain of the same amount the prior month is expected, with the rise in virus prompting shutdowns, likely offsetting a strong start to the holiday shopping season. December PMI manufacturing and services data are also due, following on from better than expected equivalent data in Europe earlier Wednesday.
In the corporate sector, e-commerce firm Contextlogic (NASDAQ:WISH), which does business as Wish, is set to start trading on Nasdaq after pricing its IPO at $24 a share, raising $1.1 billion.
Oil prices slipped back Wednesday following a surprise increase in U.S. inventories, putting the focus back on the impact on demand, given the tighter lockdowns caused by the surge in Covid-19 cases.
Crude stocks grew by almost 2 million barrels in the week to Dec. 11, according to industry group API, compared with the 3.5-million-barrel draw expected. Official government data are scheduled for later Wednesday.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.