Global Equities Mixed Ahead Of Biden's Inauguration

European stock markets were softer Tuesday after a strong showing in Asia, as investors reacted to comments by US Treasury secretary nominee Janet Yellen, and Covid-19 developments

London, (UrduPoint / Pakistan Point News - 19th Jan, 2021 ) :European stock markets were softer Tuesday after a strong showing in Asia, as investors reacted to comments by US Treasury secretary nominee Janet Yellen, and Covid-19 developments.

In New York, meanwhile, the Dow Jones index was higher in midday trading, with upbeat US corporate earnings helping to boost the mood.

The Dollar was mixed on the eve of Joe Biden's inauguration as US president, with traders focused on his vast $1.9-trillion stimulus plan.

Oil prices gained on optimism over the global economic recovery and vaccine rollouts that are offsetting concerns about the emergence of new, apparently more contagious strains of the novel coronavirus.

- Yellen's remarks - The key event this week is Biden's inauguration on Wednesday, with the Democrat vowing swift action to fight pandemic fallout and boost the ailing US economy.

In the meantime, investors tuned in to hear Yellen tell US lawmakers that the world's top economy could suffer if they do not approve his stimulus package.

She also emphasised that the dollar's value should be determined by foreign exchange markets, and expressed support for global digital tax negotiations taking place under the auspices of the Organisation for Economic Co-operation and Development (OECD).

A global agreement would allow the US to collect taxes from corporations that have moved their headquarters overseas, Yellen told the Senate Finance Committee during her confirmation hearing.

"It would enable us to collect a fair share from corporations, while maintaining the competitiveness of our businesses and diminish the incentives that American companies now have to offshore activities," she said.

In New York, traders also scoured US corporate results, which Oanda market analyst Craig Erlam suggested might "spark markets back into life".

In Germany meanwhile, investor confidence jumped in December, the ZEW institute's monthly barometer showed.

ZEW President Achim Wambach said: "The announcement of imminent vaccine approvals makes financial market experts more confident about the future," but that failed to push the DAX index of leading German shares into the black.

That was because German authorities were set to announce the extension and tightening of a partial lockdown beyond January owing to growing fears over the new coronavirus variants.

- Key figures around 1715 GMT - New York - Dow: UP 0.4 percent at 30,948.54 points EURO STOXX 50: DOWN 0.2 percent at 3,595.42 London - FTSE 100: DOWN 0.1 percent at 6,712.95 (close) Frankfurt - DAX 30: DOWN 0.2 percent at 13,815.06 (close) Paris - CAC 40: DOWN 0.3 percent at 5,598.61 (close) Tokyo - Nikkei 225: UP 1.4 percent at 28,633.46 (close) Hong Kong - Hang Seng: UP 2.7 percent at 29,642.28 (close) Shanghai - Composite: DOWN 0.8 percent at 3,566.38 (close) Euro/dollar: UP at $1.2122 from $1.2077 at 2200 GMT on Monday Dollar/yen: UP at 103.88 Yen from 103.69 yen Pound/dollar: UP at $1.3624 from $1.3587 Euro/pound: UP at 88.98 pence from 88.89 penceWest Texas Intermediate: UP 1.0 percent at $52.89 per barrelBrent North Sea crude: UP 2.0 percent at $55.83 per barrel