UK and US closed today: Trading volumes low after lifeless weekend for cryptos
European futures indicate a quiet session as both the UK and the US markets are closed for a bank holiday.
Trading volume is expected to remain extremely lifeless, while economic numbers out of China and Japan haven’t helped the sentiment as well and it is likely that traders may not support any risker assets today.
Treasury Secretary Janet Yellen suggested that the government increase spending and the Republicans countered President Biden’s proposal by proposing a much lower infrastructure plan. In response, the Dow Jones Industrial Average and S&P 500 rose, while the Nasdaq fell.
Cryptocurrencies
Bitcoin price had a quiet weekend and it continues to trade below the 40K price today.
“Dogecoin’s price hasn’t also seen any significant increase for sometime, while Ethereum’s price also continues to struggle and trades below $2,535,” Naeem Aslam, chief market analyst at AvaTrade, pointed out today.
Boeing, JPMorgan and Goldman Sachs
The stock price of Boeing increased on Friday as the company’s top customer, Southwest Airlines, communicated that it is considering expanding its routes within the United States as the economy recovers from the Coronavirus pandemic.
As a result, it would purchase 500 new aircraft, pushing the stock price of Boeing above the 50 day moving average, Aslam said.
JPMorgan also increased during its last trend as its stock found support on the 21 day moving average, pushing the price of shares up. It increased by 1.5 per cent. Likewise, Goldman Sachs, which is also a blue chip stock, increased in value by 1 per cent.
Government spending
The Treasury Secretary has suggested the government increase its spending. According to Yellen, the government has been operating on a budget that has been stagnant for 11 years.
“The former Fed Chair’s remarks come as President Biden prepares to unveil his first budget. The size of the budget is set to be $6 trillion, covering deficit spending and an increase in taxes,” Aslam said.
“On the other hand, earlier the republicans had proposed to reduce the job creation and infrastructure plan to $568 billion, which President Biden countered by reducing the plan by a quarter to $1.7 trillion. The republicans again countered the proposal by offering a plan which is in the neighbourhood of $1 trillion,” he added.
The Labor Department reported on Thursday that jobless claims dropped to 406,000, far below the 425,000 predicted by the Dow Jones survey. This represents a new pandemic low, Aslam pointed out.
Asian stock markets
The Asian Pacific markets traded mixed today. The Nikkei 225 in Tokyo decreased by 0.91 per cent and the Shanghai Composite Index fell by nearly 0.03 per cent.
Meanwhile, Hong Kong’s Hang Seng index declined 0.69 per cent. The Seoul Kospi increased by 0.33 per cent and Australia’s ASX 200 advanced 0.21 per cent.