Corona aid package expires: Wall Street is preparing for the dry spell

The US economy is threatened with a gap until new President Biden takes office on November 20. The news came as a surprise to investors that emergency loans worth billions were due to expire at the end of December. Pfizer's application for approval for a vaccine then had a vitalizing effect.

Fear of waning economic stimuli and economic damage from the rampant corona pandemic sends the US stock exchanges into the weekend depressed. The Dow Jones Industrial gave way in the evening. The best-known American stock index thus continued the zigzag course of the past few days at a high level. Once again, investors waited in vain to jump over the round and never-before-reached mark of 30,000 points. The focus was on new, positively received news about the developers of corona vaccines.

The Dow expanded its losses in late trading and finally lost 0.75 percent to 29,263.4 points – the weekly minus was almost identical. The market breadth S&P 500 decreased by 0.68 percent to 3557.5 points. For the tech-savvy Nasdaq 100, which in the meantime was listed in positive territory, it ultimately fell by 0.66 percent to 11,906.4 points.

US Treasury Secretary Steven Mnuchin had previously announced that the multi-billion dollar corona aid created in the spring would expire on December 31. Experts spoke of a gap that will open up until the inauguration of Democratic President-elect Joe Biden on January 20. "Markets will operate for about three weeks in January without the support they have had since spring," said JPMorgan's Michael Feroli. From a psychological point of view, this could cause market participants to create, said strategist Mike Zigmont from the analysis house Harvest Volatility Management. "But the facility that is being canceled has not been drawn, so the fact that it expires in December will have no direct impact on anything."

Pfizer is hoping for vaccinations

We were on Wall Street again Pfizer and Biontech asked, whose shares rose by 1.3 and 7.4 percent. The pharmaceutical company and biotech company filed their expected application for an emergency approval for their corona vaccine with the US FDA. In contrast, shareholders threw the papers off Gilead from the depots. A panel of the World Health Organization (WHO) advises against the use of remdesivir in Covid-19 patients with severe disease. The papers yielded 1.2 percent. Nike shareholders could look forward to a twelve percent dividend increase. The share certificates of the sporting goods manufacturer went up by one percent.

Bitcoin rally continues

The optimists just got the upper hand on the raw materials market. The price of a barrel North Sea Oil the Brent variety rose 0.3 percent to $ 44.35 a barrel (159 liters). "Demand concerns that have weighed on prices since the spring are now giving way to economic hopes," said Commerzbank expert Eugen Weinberg. However, the funding discipline could crumble. That could lead to an oversupply on the oil market.

Things continued to rise rapidly at Bitcoin: The world's oldest and most important cyber currency rose in price by up to 4.9 percent at the daily high. The record high could soon fall, said Timo Emden from Emden Research. "Then at the latest I expect more profit-taking." At the end of 2017, Bitcoin narrowly failed after a price explosion of around 2000 percent on the threshold of $ 20,000.