Stocks push higher; dollar eases amid stimulus hints

By Peter Bukov|

Published: October 01 2020, 09:59 GMT+0

Stocks push higher; dollar eases amid stimulus hints

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Another day, another stimulus talks and another strong rally in equities. It seems there really is no other driver of the stock markets apart from stimulus – either fiscal or monetary.

Traders rebought stocks after the US Treasury Secretary Steven Mnuchin said talks with House Speaker Nancy Pelosi had made progress, and the House of Representatives postponed a vote on a 2.2 trillion USD Democratic coronavirus plan to allow more time for a bipartisan deal to come together.

Later in the day, US jobless claims are due, with the labor market not improving over the previous two months as new claims are still in the 850k region, and continuing claims are still seen above 12 million. Moreover, as winter months are coming, the US will likely face additional lockdowns, destroying more jobs and businesses again.

Additionally, the US manufacturing ISM is expected to improve marginally to 56.3 from 56.0 in August. 

The greenback was notably lower in the morning as risk-on sentiment usually leads to the weaker USD. Metals and oil were up strongly, with silver rising more than 2% and the WTI benchmark pushed above the 40 USD level again