Reddit traders spark a short squeeze and unnerve equity markets, with last week being the worst week for many stock markets since October 2020. Meanwhile, Europe’s vaccination row intensifies as the UK inoculation pace speeds up. In the US, Biden signs ‘Buy American’ Executive Order.
Monday Investment Club Episode 3 – R/Wallstreetbets – PODCAST 17 MINUTES by Omnis Investments
Stock markets down significantly last week
Stock markets were down significantly around the world, and for many stock markets it has been the worst week since October 2020. Reddit traders took on Wall Street giants last week, sparking a ‘short squeeze’.
Some positive economic data in Europe & UK
France, Spain and Germany all reported better than expected GDP for the fourth quarter of 2020, with only France’s economy contracting in the period. In the UK, figures show job losses slowed in November despite national lockdown.
Vaccination rates: Europe continues to lag; UK picking up pace
Vaccination rows in the EU intensify and the European Commission subsequently takes action to block exports of the vaccine outside of the EU. On the other hand, over 13% of the UK population have now received at least one dose of a Covid-19 vaccination.
US: ‘Buy American’ EO, Fed’s monetary policy & Covid-19
Biden signs ‘Buy American’ Executive Order (EO), the Fed re-emphasises their commitment to lose monetary policy and the US rebound slowed in the fourth quarter of 2020 amidst rising Covid-19 cases.
The Week Ahead
• Bank of England to release information on rate path
• European Central Bank to issue monetary policy statement
• In the US, January unemployment data release
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