Things to watch out for on Tuesday, December 28:
The US dollar extended its slide on Friday and ended Tuesday with moderate losses against most of its major rivals. Weakening US inflation, according to data released last week, coupled with Chinese news boosted market sentiment after the long weekend.
China revised upwards its estimate of Gross Domestic Product (GDP) for 2021, raising it from 8.1% to 8.4%. In addition, the Government continues easing restrictions related to covid-zero , which will mitigate the negative impact that the limitations had on the economy. Finally, the Immigration Administration of China announced that it would resume issuing visas for mainland citizens traveling abroad.
World Stocks were supported by speculation that the Chinese government would focus on boosting growth and move further away from its covid-zero policy. Wall Street traded mixed, with the DJIA rising, but the Nasdaq Composite lost about 100 points.
On the negative side, the President Russian Vladimir Putin signed a decree that prohibits the sale of Russian oil to the countries that imposed the oil price limit. It will apply from February 1 to July 1. There are reports that soften the headline and point out that it does not necessarily imply oil exports to countries with formal bans.
EUR/USD is hovering around 1.0650, while GBP/USD dips to 1.2025. The AUD/USD pair is trading in the 0.6730 area, while the USD/CAD is around 1.3520. The fall in oil prices weighed on the CAD as WTI trades around $79.30 a barrel. Lastly, the USD/JPY pair rose and trades at 133.35.
Gold reached a new 3-week high at $1,833.32, but eased back towards its comfort zone at around $1,815 by the end of the day.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
