If not for Covid-19, world leaders would be enroute to the Swiss ski resort of Davos to discuss critical issues affecting the globe.
However, the main event will now take place in Singapore near the end of May thanks to the coronavirus situation in Europe.
Nevertheless, an online event named ‘The Davos Agenda’ kicks off today till January 29th under the theme “A Crucial Year to Rebuild Trust”.
Who is invited?
I would love a personal invite, but not anybody can attend this prestigious event.
This is reserved for key government officials, business leaders, financial heavyweights, and heads of states. Major speakers include European Central Bank President Christine Lagarde, Bill Gates, Chinese President Xi Jinping, and many others.
Guess who was not invited…former US President Donald Trump. Already banned from Twitter and Facebook, it looks like he will be blocked from attending another WEF at Davos – especially after World Economic Forum (WEF) founder Klaus Schwab showed little interest in extending an offer.
What will be discussed?
The Davos Agenda 2021 will centre on the theme of a "Crucial Year to Rebuild Trust".
Over the past year, the coronavirus menace has disrupted lives, crippled businesses and punished economies across the globe. However, with the first vaccine doses being administered there is some light at the end of the tunnel. World leaders will discuss critical issues revolving around vaccination programs, job creation and climate change. Essentially, the virtual conference aims to develop forward-looking and sustainable solutions for a post-Covid-19 world.
Why does this even matter?
Investors will be closely scrutinizing the virtual high-level meetings for key clues on what to expect from world leaders, government and business leaders in 2021. Should the meetings/speeches sound hopeful and optimistic, this may boost sentiment over the global outlook.
However, if world leaders sound cautious and pessimistic – especially in regards to the Covid-19 developments, risk-off could make an unwelcome return.
How will this impact markets?
So far so good, the event has had little impact on financial markets.
Investors seem to be more concerned about surging coronavirus cases, the pace of vaccine rollouts, earnings and the great ‘reflation trade’ among many other key themes.
There could be some fireworks sparked by ECB President Christine Lagarde's speech, especially if she offers fresh clues on the ECB’s monetary policy path in the face of Covid-19.
Where can I watch this?
You can watch the live and recorded sessions on the official World Economic Forum website.
Here is the link - https://www.weforum.org/events/the-davos-agenda-2021
What about the charts?
For my technical traders, our commodity spotlight shines on Gold.
Prices are struggling to break away from the sticky $1850 level. It looks like the metal is waiting for a fresh directional catalyst to breakout or down. Gold is trading below the 50 & 100 SMA but the 200 SMA is acting as a reliable support. We will revisit this setup mid-week.
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