Markets rally after new stimulus package

Stock markets across the globe rose sharply on Monday despite the worsening COVID situation as the US’s new stimulus overshadowed everything else. 

Democratic lawmakers unveiled Monday a new 2.2 trillion USD coronavirus relief bill, which US House of Representatives Speaker Nancy Pelosi described as a compromise measure. Republicans might be satisfied with this number as they have wanted more stimulus for some weeks now. 

Additionally, the European Central Bank President Christine Lagarde said that the central bank is ready to deploy more monetary stimulus to aid the recovery if needed, as the COVID 2.0 crisis is about to begin during the fall and winter. 

That is all that investors wanted to hear – more and more stimulus – and equities rocketed higher. 

Later in the day, there are a couple of speeches by the Fed’s governors, which are expected to confirm the Fed’s current dovish stance. Thus, more fuel for the stock market rally. 

The greenback weakened as sentiment improved, and the EURUSD pair rose toward the 1.17 level, while the cable was seen somewhat below 1.29. Metals were flat during the London session, and the WTI oil was down a bit. 

Source: https://www.axiory.com/market-news/markets-rally-after-new-stimulus-package