The US market closed with growth last week, gaining 0.7% in the DJIA, 1.4% in Nasdaq Composite and 1% in the S&P 500.
The main reasons are the strong vaccine rollout in the US and faster recovery of the economy due to financial stimulus from both the Fed and the US government.
But with regards to the coronavirus, global incidence has reached 830,000 again, with India leading at 350,000. It is followed by France with 32,000 new cases, Germany with 24,000, Italy with 14,000 and Ukraine with 13,000.
Because of this, the European Central Bank decided to keep a soft monetary policy, leaving rates at zero level. Accordingly, such a decision pushed the euro to trade above 1.2000 and above the 100 MA, which signals a continued bullish move.
As for oil, Brent is trading at $ 65.40 today, and it is expected to close around $63.00 - $67.50 by evening. Apparently, demand and supply is balanced, which should remain for quite a long time.
WTI, on the other hand, is trading at $ 61.50. It should close around $ 60.00- $64.00 today.
Conclusion: The market will remain calm, awaiting the Fed's policy decisions on Wednesday. But the COVID disaster in India could turn the picture around, especially if it gets worse and requires help from other countries.