Daily Outlook: JPMorgan said investors were too pessimistic and believed that U.S. stocks would not pull back sharply

2021-12-28 11:34:58

01

Fauci: The United States should consider requiring domestic travel to be vaccinated against the new crown:

As the number of new crown cases in some states in the United States hit record highs driven by the omicron mutation and holiday travel continues to be blocked, the country’s President Joe Biden’s medical adviser said that the government should consider requiring domestic travel to be vaccinated. Anthony Fauci stated on MSNBC on Monday that it is reasonable to consider requiring people to be vaccinated against the new crown before taking domestic flights. He later said in an interview with CNN that the public should consider avoiding larger gatherings on New Year's Eve. "When the vaccine is regarded as a regulation, more people will have multiple motives for vaccination," Fauci said. "If you want to implement this on domestic flights, I think this is something that should be seriously considered."

02

The winter storm superimposed the new crown epidemic, and the large number of US flight cancellations continued until Monday:

The issue of flight cancellations that disrupted American travel plans during the Christmas weekend continued until Monday. When airlines were already understaffed due to the surge in Covid-19 cases, the winter storm made them worse. Data from FlightAware.com shows that after more than 2,800 flights were cancelled during the weekend, as of 1 pm New York time, more than 1,000 US flights were cancelled on Monday. One of the most serious airlines is Alaska Airlines, as its main base at Seattle-Tacoma International Airport has been affected by snowfall and rare low temperatures.

03

The Turkish lira ended its five consecutive rise, and Erdogan’s guarantee seemed to be useless:

The Turkish lira has risen for five consecutive days. Although the authorities introduced measures to curb the lira's decline a week ago and vowed to say that the lira is strong, investors did not buy it. At 6:37 pm Istanbul time, the lira fell 7.2% against the US dollar to 11.4665 lire to the US dollar, which had fallen to 11.5831 lire earlier. Since the beginning of this year, the lira has depreciated by more than 35%, making it the emerging market currency with the largest decline in 2021. Last Friday, Turkish President Erdogan stated that after adopting a number of measures to support the lira, including the introduction of new tools to protect lira deposit holders, the value of the lira will "gradually" stabilize.

04

JPMorgan said investors were too pessimistic and believed that U.S. stocks would not pull back sharply:

JPMorgan Chase strategists said that there is no reason to worry that this year's U.S. stock market's record-breaking rally will soon end. In fact, more investors may join soon. "Given that investor positions are already low, share repurchases have reached record highs, limited systemic risks, and positive January seasonal factors, there is currently no condition for large-scale stock sales," led by Dubravko Lakos-Bujas The strategist wrote in the research report to the client. "Investors' positions are too pessimistic, and the market's pessimistic view of the development of the hawkish Federal Reserve and omicron has gone too far."

05

The People's Bank of China reiterated that it will enhance the flexibility of the RMB exchange rate and implement prudential management of real estate finance:

The People’s Bank of China’s 2022 work conference pointed out that it will enhance the flexibility of the RMB exchange rate and maintain the basic stability of the RMB exchange rate at a reasonable and equilibrium level. The meeting reiterated that the prudent management system for real estate finance will be implemented steadily to better meet the reasonable housing needs of buyers and promote a virtuous circle and healthy development of the real estate industry. The meeting stated that it will enhance the stability of total credit growth, increase support for the real economy, and maintain the growth rate of money supply and social financing scale to basically match the nominal economic growth rate; no specific targets were given. It will strengthen the supervision of capital and platform enterprises in accordance with the law, and continue to do a good job in the rectification of leading online financial platforms.


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