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Despite Strong Private Payrolls NASDAQ Slides, UK Suspends the Need for PCR Tests & Oil Prices Climb as U.S. Stockpiles Decline

NASDAQ slides, despite strong private payrolls

The NASDAQ traded lower on Wednesday, despite data showing that private payrolls rose by their most in 7-months. ADP reported that payrolls rose by 807,000 in December, which is almost double the 410,000 forecasted increase. Wednesday’s number comes after November’s figure was revised down, showing a gain of 505,000 for the month.

Following the report, ADP Chief Economist Nela Richardson stated that, “Job gains were broad-based, as goods producers added to the strongest reading of the year, while service providers dominated growth”.

Despite the positive data, several U.S. indices were lower as of writing. The NASDAQ was down 2.71%, the S&P 500 was 1.45% lower and the Dow fell 0.67% from yesterday’s record close.

FTSE 100 higher, as UK suspends need for confirmation PCR test

On Wednesday, the UK government announced that PCR tests would no longer be needed for those who tested positive via a rapid antigen also known as a lateral flow test or LFT. Individuals who test positive after a lateral flow examination, but have no underlying symptoms, will not require any further tests.

💡 Criticism over LFTs
Many in the UK have been critical of the LFTs, after initial “positive” tests, where proven to be false once an additional PCR test was taken.

COVID-19 cases in the United Kingdom are now at record highs, however the government has resisted the urge to apply any further restrictions.

London’s FTSE 100 closed 0.16% higher on Wednesday.

U.S. stockpiles decline, Oil prices climb

Oil prices rose for a second consecutive session, as figures revealed that U.S. stockpiles had fallen. Data from the Energy Information Administration showed that Crude inventories declined by 2.1 million barrels last week.

This was better than market expectations for a drawdown of 3.28 million barrels for the week that ended January 2nd. Markets were already boosted in recent days, after OPEC+ confirmed a hike of 400,000 bpd commencing in February.

💡 Cancelations for the U.S. airlines only?
Join us tomorrow as we discus the energy sector with Anas Alhajji, on our very own social trading platform TradeGATEHub, so you can interact with with Anas as well as other investors. But you can also follow along on our YouTube Channel

WTI rose to an intraday high of $78.62, which is its highest level in 6 weeks.

“We want to perceive ourselves as winners, but successful traders are always focusing on their losses.”

– Peter Borish

Eliman Dambell

Senior Market Analyst