Optimism about the vaccination with COVID-19 vaccines in the U.S. and new fiscal aid from Washington are causing a rapid rise in global shares for the 11th day in a row. At the same time, tensions in the Middle East forced oil prices to get to their 13-month high. This is reported by Reuters.
U.S. President Joe Biden's looking extra 1.9 trillion dollars in stimulus into the country's economy increased the overall tempo of the so-called reflation trade.
Speaking of oil prices, the recent confrontation between the Saudi-led coalition and Iran regarding the interception of an explosive-laden drone in Yemen caused the highest rise in prices since January 2020.
As we reported earlier, Biden has decided to freeze the implementation of his predecessor Donald Trump's plan to withdraw 12,000 U.S. troops from Germany.
Jake Sullivan, White House National Security Adviser, called the decision “a global force posture review.” Biden ordered the Pentagon to conduct a review of how the country’s troops are deployed across the world.