Global markets continued to test historically record highs, in equities, while bond yields steadily gained ground. This comes despite the absolute turmoil in Washington. The crazed Democrats are on the verge of total power in Congress and the Presidency, but still commit all resources to destroying the outgoing President. The Democrats tried to have POTUS removed from office, but that failed, so they Impeached him for the second time! These are very serious political attacks and only serve to destroy the power of the institutions. The President will be leaving office in less than a week, thus suggesting unrestrained and pathological hatred, allowing unbridled political attacks. This is hardly unity and the impact will be great, especially considering the doubtful election process.
Equity markets booked further gains, as the vaccine roll-outs look positive, but further mutant variations are likely to upset the narrative. The USD settled, with the EUR pushed back to 1.2150, while the GBP moved up to 1.3670. Chinese trade numbers beat all expectations, with imports jumping 6.5%, while Exports blew out to gains of 18.1%! The Chinese are reaping the rewards of controlling the virus and the economic impact of it, having been the genesis country. Commodity currencies were beneficiaries of the weaker reserve, with the AUD trading 0.7780, while the NZD broke back above 0.7200.
Global markets are a long way from normal, with production and supply severely damaged. The fiscal and monetary supports are there, but data is starting to hint at serious underlying economic issues. US Weekly Jobless Claims spiked to 965,000, much higher than expected, continuing a worrying trend.