Recent developments in the United States and globally highlight critical economic and health updates:
- Trump expresses doubts about the Covid relief bill, seeking amendments.
- US hospitals struggle with rising cases of Covid-19.
- A new strain of Covid-19 identified in the UK may have spread to Europe and the US.
- WHO’s chief scientist states herd immunity is unlikely before late 2021.
- The EU-China investment deal faces obstacles following a tweet from a Biden aide.
- Israel’s government collapses, which will result in new elections—its fourth in two years.
- US GDP saw a record increase for Q3, which was upwardly revised slightly.
- Existing home sales in the US fell for the first time in five months in November.
- XRP cryptocurrency dropped 25% following a lawsuit by the SEC targeting Ripple.
- Manufacturing growth in mid-Atlantic states strengthened in December.
- The US Consumer Confidence Index dropped to a four-month low in December.
Widespread rallies across major asset classes in recent times have created limited opportunities for bargains as 2020 draws to a close. The notable exceptions are in energy and specific segments of the commodities markets. Outside of this, there seems to be little in the way of deep-value investments, assessed across more than 140 exchange-traded funds encompassing stocks, bonds, real estate shares, and global commodities.
Significant news highlights include:
- Congress has approved an $892 billion Covid-19 relief package.
- US Treasury Secretary stated that stimulus checks could start arriving as soon as next week.
- Despite warnings regarding the virus, US airport passenger numbers exceeded 1 million.
- Google and Facebook agreed to collaborate regarding potential antitrust litigation.
- The UK’s Q3 GDP growth figure was revised up to 16.0%.
- US economic growth displayed signs of a slowdown in November through the Chicago Fed National Activity Index.
Last week witnessed a recovery in American stocks, hitting record highs before closing slightly lower on Friday, December 18. In the aftermath, US stocks outperformed most other major asset classes, all of which registered notable gains as indicated by a variety of exchange-traded funds. However, US investment-grade bonds experienced a slight decline.
Major legislative developments include:
- Congressional leaders reached an agreement on a $900 billion Covid-19 aid package.
- The House and Senate are set to vote today on the Covid-19 relief bill.
- The UK has become isolated in Europe after reporting a highly contagious new strain of the virus.
- A cyberattack on the US government has been revealed to be more severe than initially believed.
- The year 2020 is characterized by volatile economic predictions.
- The US Leading Economic Index continued to show signs of recovery in November.
Latin America’s Continued Success: Stocks in Latin America maintained their upward trajectory for the seventh consecutive week as of December 18. The iShares Latin America 40 (ILF) gained 2.5% during this week’s trading session. Despite a pullback on Friday, the fund remains near a 10-month peak.
China has emerged as the top performer among major global equity markets in 2020, with the final trading sessions approaching as of December 17.
Key updates on the ongoing pandemic include:
- A second coronavirus vaccine is moving closer to receiving approval in the US.
- Congress is still negotiating the coronavirus stimulus as a government shutdown approaches.
- Google is facing three significant antitrust lawsuits.
- The US plans to add numerous Chinese companies to its trade blacklist.
- Japan is experiencing deepening deflation as consumer prices fall at the fastest rate in a decade.
- Philly Fed Manufacturing Index continues to indicate robust growth in December.
- US housing starts increased in November, marking the third monthly gain.
- US jobless claims are on the rise, reaching their highest level in over three months.
With vaccines being distributed, prospects for overcoming the coronavirus in the US appear more optimistic for 2021. However, the upcoming winter months may present significant challenges.
