The inauguration of President-elect Joe Biden later on Wednesday will draw focus on to the big stimulus plans outlined by the incoming administration but trading in Asia overnight and Europe suggests the course of the pandemic is still creating plenty of nervousness among investors, says AJ Bell investment director Russ Mould.
“The FTSE 100 managed to eke out some gains early on but they were modest and after a brief spurt higher at the start of the year, the index has stalled.
“We could be stuck in a kind of limbo until there is an indication on when lockdowns might start to be eased. This involves different factors from the pace of vaccine rollouts to political judgements on the levels of risk which are acceptable.
“Oil and gold prices were up, presumably in the expectation that Treasury Secretary nominee Janet Yellen’s call to ‘act big’ on US stimulus efforts could stoke inflation.”