New Strain of COVID-19 Identified in UK
December 21, 2020
Congressional leaders from both parties have agreed to a $1.4 trillion budget deal to fund the government until October 1. The bill includes $900 billion in coronavirus aid with a second round of smaller $600 stimulus checks, $300 per week unemployment benefits for 11 weeks, more funding for small businesses through the Paycheck Protection Act, and additional funds for schools, coronavirus testing, and vaccine distribution. Congress passed a one-day stopgap measure to keep the government funded so that it can vote today n the budget deal.
The energy markets opened lower and sold off from there to begin this shortened Christmas Holiday week. Another round of stimulus is good news, but the market sold off anyway, very likely some traders taking profits after the rally price have been on. The big sell off at the open of trading points to the likelihood of volatile market this short trading week.
Also putting pressure on price is the news out of the UK that a new strain of COVID-19 had been identified and this caused Prime Minister Boris Johnson to impose new sanctions. So, the potential for new lockdown in the UK is also adding to some profit taking.
Canada also halted flight from the United Kingdom for 72 hours to try and prevent the spread, not good news for an airline industry that is already struggling.
This new virus news is front and center and how that story develops will impact markets here in the near term.