Global stocks moved higher this week as investors continued to evaluate positive earnings results, improving virus trends, and positive developments on the fiscal stimulus front. Traditionally riskier asset classes like small caps and emerging markets have led the way this year, up about 15% and 10% respectively. In Washington, the House voted to confirm the fast track of President Biden’s $1.9 trillion stimulus package with Speaker of the House Nancy Pelosi stating the bill should be passed by the end of the month. On the data front, U.S. consumer prices were reported this week showing little signs of inflation, coming in at 1.4% versus consensus expectations of around 1.5%. Interest rates trended lower following the report, with the yield on the 10-year Treasury note trading around 1.13% on Wednesday. In virus news, the average number of new coronavirus cases reported in the U.S. continues to decline after peaking in January. The Center for Disease Control and Prevention reports that more than 60 million doses of the vaccine had been distributed in the U.S. as of the evening of February 9, with about two-thirds of those distributed having been administered already.
Sources: GSAM, CNBC, JPM, Bloomberg, FactorInvestor
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