Virus fears continue to recede as equity markets hovered in the green with all eyes on the US consumer inflation numbers, released on Friday, and a Federal Reserve meeting next week that may provide clues on the pace of tapering and interest rate increases. The dollar and crude climbed, while the 10-year Treasury yield held above 1.50%.
The pound continues to struggle, hovering around 1.32 GBPUSD in early trade today, after Johnson’s Covid Plan B taking effect on Monday:
• Monday: work from home if you can
• Starting Friday: compulsory masks in most public indoor venues
• In a week: NHS Covid Pass mandatory for entry into large venues
The UK is already lagging most major economies (based on YoY Q3 GDP data) with the latest restrictions announced by Boris Johnson estimated to cost the economy as much as $2.6 billion, leading lobby groups to call for government support to help businesses.
Digital World Acquisition Corp. stock (DWAC) surged in yesterday’s session by 28%, after previously reporting plans to merge with Trump Media and Technology Group (TMTG), with the latest news being Congressman’s Devin Nunes planning to resign from Congress to become TMTG CEO.
An anonymous $1 billion investment in DWAC, along with a PIPE structure that doesn’t require investors of TMTG and DWAC to hang around for a few months – i.e.: investors are able to sell their shares the moment the deal closes – was enough to push DWAC to the top 3 most mentioned stocks on Stocktwits yesterday, fueling the price surge.
DWAC’s technical analysis favors higher prints, with the daily chart kicking off an uptrend and closing above the $65 handle, with post market trading registering highs of $69.