Equities advance, metals falter on Wednesday.

13/01/2021

It looks like yesterday's dip in US equities will be bought today as all three major US indices were trading stronger during the London session.

DAX will most likely outperform other indices today after a report by the newspaper Bild suggested German Chancellor Angela Merkel wanted to extend the current lockdown in Europe's largest economy through the end of March.

So far, lockdowns have been very bullish for EU and US indices as central banks started to throw money at the markets. If the global lockdown is prolonged by another three months, we might expect more stock market records. 

US yields reversed their gains yesterday, and it might have been a short-term top for yields. That has led to some strength in metals, but PMs are already being sold on Wednesday.

In the FX, the USD slipped as yields eased, with the EURUSD pair rising back above the 1.22 level and USDJPY fell below 104.

Later in the day, US CPI is due, which might influence US stocks, USD, and metals. 
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