Shares
 
FAQs

Visit our FAQ page to find the answers to the most commonly asked questions, including how to create an account, explaining ETFs, and providing useful links, forms, and tables.

FAQs
Shares

Start investing in Australian shares the smart way. Discover ThinkTrader today.

Open Shares Account
Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn more
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn more
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn more
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn more
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn more
Live Webinars

Boost your investing knowledge with our live, interactive webinars delivered by industry experts.

Register now
Special Reports

Engaging, in-depth macroeconomic analysis and expert educational content from our in-house analysts

Learn more
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Money Manager

Increase your income and get compensated for your trading knowledge with ThinkInvest, putting you in control.

Learn more
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn more
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn more
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn more
Partnership

Plug into the next-gen platforms and the trades your clients want.

 
About ThinkMarkets
 
Sponsorships

Check out our sponsorships with global institutions and athletes, built on shared values of excellence.

Learn more
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn more
Negative Balance Protection

Trade with peace of mind. Never lose more than what you deposited, no matter what the market conditions.

Learn more
Careers

Discover a range of rewarding career possibilities across the globe

Apply now
ThinkMarkets News

Keep up to date with our latest company news and announcements

Learn more
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn more
Contact Us

Our multilingual support team is here for you 24/7.

Learn more
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Log in Create account

Stocks pause for breather ahead of US data dump, Thanksgiving

Fawad Razaqzada Fawad Razaqzada 25/11/2020
Stocks pause for breather ahead of US data dump, Thanksgiving Stocks pause for breather ahead of US data dump, Thanksgiving
Stocks pause for breather ahead of US data dump, Thanksgiving Fawad Razaqzada
The markets have spent the first half of the day digesting the recent gains. European stock indices have retreated slightly, causing US index futures to decline ahead of US data dump and Thanksgiving Day on Thursday.

Investors will be giving a lot of thanks also to the scientists who have made incredible progress in developing effective vaccines, and in doing so helping to fuel a sharp rally that saw the small-cap Russell 2000 index hit a new record and the  Dow topped 30K for the first time ever on Tuesday. Also boosting sentiment has been news of Janet Yellen's selection as President-elect Joe Biden's Treasury Secretary nominee, while the publication of stronger US economic data has reduced fears over a sharp drop in economic activity as a result of the latest lockdowns. It will be interesting to observe today’s publication of several US macro pointers and how the markets will respond. Among other things, we will have the latest jobless claims data, the second estimate of GDP, new home sales and personal income and spending numbers. Later on in the day, the FOMC’s last meeting minutes will be published at 19:00 GMT.

So, investors are hopeful that the vaccines will be distributed in early 2021 and this will give rise to pent-up demand as consumers and businesses look forward to more normal times ahead.

While all this is well and good, it looks like the markets are under-pricing the risks of the long-term damage of the pandemic on the world economy. This is something that could come back to haunt investors in the months ahead.

Many businesses have closed down for good and many jobs will never return. Homeowners might struggle to pay their mortgages when government support is lifted, causing some to lose their homes and push down house prices, trapping some in negative equity. What’s more, governments worldwide will have to raise taxes to recoup the amount of money they have splashed supporting the economy during lockdown. In the US, the new administration is likely to raise taxes on corporations, and Biden will not be as obsessive as Trump in trying to pump the stock market. Furthermore, the Republicans in the Senate they will provide stiff resistance to Democratic efforts of introducing a large stimulus package.

So, there are plenty of risks that are perhaps not priced in. But right now, sentiment is positive, and momentum is bullish. As short-term traders, we must respect that and go with the momentum rather than against – until the charts tell us otherwise.

DJIASource: ThinkMarkets and TradingView.com
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Related articles:

RDDT soars: here are the levels to watch in c...

By Alejandro Zambrano

26/03/2024

Weekly Index Dividends

By ThinkMarkets

25/03/2024

Reddit Launches IPO: Can the Struggling Compa...

By Alejandro Zambrano

21/03/2024

Weekly Index Dividends

By ThinkMarkets

18/03/2024

Riding the rollercoaster: Bitcoin's record su...

By Alejandro Zambrano

12/03/2024

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top