US President-elect Joe Biden revealed his intention to approve new financial stimulus packages worth $ 1.9 trillion, adding $ 1,400 per capita aid to the previous one of about $ 600.
Economic performance data was mixed this week, except for data in China, which continued to improve.
Trading volumes on US Treasuries increased during the week, rising with larger gains in longer-dated bonds as a result of increased demand in the 10-year and 30-year Treasury auctions on Tuesday and Wednesday.
Moreover, comments by Fed officials about the timing of gradually reducing its Treasury purchases during the week supported the rise in bond prices.
Current market prices reflect a 2.9% probability that the Federal Reserve will cut rates, during its next meeting in January 2021.
While global stocks recorded losses during the trading week that was full of political turmoil, and a new record rate of deaths due to the Corona virus was recorded in the United States.
American stocks fell at the end of the week due to the decision to indict Trump and refer him to legal accountability, in addition to the new record high in the numbers of deaths resulting from the epidemic, the variation in the quarterly profits of major banks, as well as worse than expected economic data, in addition to the sharp decline in energy sector shares due to investigations conducted by the authorities Regulatory Authority with Exxon Mobil Corporation.
In the US, the S&P 500, Nasdaq Composite and Dow Jones Industrial Average indices fell 1.48%, 1.54% and 0.91%, respectively.
Meanwhile, the VIX index, measuring market volatility expectations, rose to 24.34 points, but is still below its 2020 average of 29.31.
Likewise, investors were reluctant to take risks in Europe, as the STOXX 600 index fell by 0.81% due to fears of tightening lockdown measures, slower than expected vaccination operations, and a spike in virus cases in China.
Investors’ distancing from risky assets did not affect emerging market stocks, as the MSCI EM Stocks Index rose 0.33%.