Investors brace for Biden reign, stimulus

With companies worldwide reporting earnings in full swing, investors will keep an eye for how businesses are coping with the current crisis, while keeping a watch for some key economic data as well.

Joe Biden steps into office as the 46th US president on Wednesday. Markets will see how both Biden’s plan to combat the health crisis and his proposed $1.9 trillion stimulus package will fare, which political strategists expect is a package that will be passed but not before it is trimmed down.

Stock markets have risen roughly 13 per cent postElection Day on November 3 — the biggest S&P 500 gain between the election and the inauguration for any president going back at least to 1952, according to US-based investment research firm CFRA.

Additionally, earnings season in the US is now in full swing, with more banks reporting numbers as well as giants like IBM and Netflix. In the UK, there are more UK trading statements to provide detail on fourth-quarter’s corporate performance.

The big US banks kicked off the latest earnings season with JPMorgan, Citigroup and Wells Fargo out with reports on Friday, just a sampling before next week’s rush, which includes reports from industry titans such as Bank of America, Goldman Sachs and Procter & Gamble.

Meanwhile, on the global economic front, some news expected next week from some parts of the world includes the data on Germany’s key economic ZEW index, UK inflation and the first European Central Bank meeting of 2021 – which will be closely watched for hints on economic health amid the crisis.