As we have said previously many times, the fundamental situation remains very bullish for equities. The economic activity is deteriorating again due to various COVID restrictions, which means more stimulus will be thrown into the game. Either fiscal or monetary.
Next week, the ECB is about to increase its QE program by a large margin, with the Fed expected to deliver more easing later in December as well. Thus, equities are expected to continue in their steep upward trajectory.
From other news, the greenback continues to bleed, and the EURUSD pair surged to 1.21, which are 30-month highs for the euro. The greenback has been losing against other currencies as well.
It looks like precious metals have finally woken up from their hibernation, and silver soared 6% yesterday, while gold added 2% in what looks like a nice reversal pattern from the recent bearish trend.
Later in the day, the US ADP report is due and should improve to 420k from 365k previously.