US equities continue higher as the world battles another wave of infections

By Peter Bukov|

Published: October 12 2020, 09:49 GMT+0

US equities continue higher as the world battles another wave of infections


The US stocks are up for the fourth consecutive day, with indices trading higher during the London session. Despite saying there won’t be a deal with Democrats until the elections, the Trump administration called on Congress to pass a stripped-down coronavirus relief bill. This comes after it proposed a new comprehensive 1.8 trillion USD stimulus deal on Friday that immediately ran into opposition on both sides of the political divide.

Democrats think this is not enough – they need to bailout destroyed cities and towns after the latest rounds of summer protests. Although Democrats fully support these “peaceful” protests, the infrastructure’s damage is enormous, and now they need the bailout money.

On the other hand, some Republicans think that another 2 trillion USD is too much, and the budget deficit cant rise at this pace forever. 

Nevertheless, everything is bullish, and equities are loving news of more stimulus. 

Additionally, more and more EU countries are imposing lockdowns, closing down restaurants, limiting leisure activities, and banning travel as countries face exponential increases in COVID cases again. That also seems bullish for stocks as more stimulus will be announced sooner rather than later.

The calendar is empty today and the US markets will be closed for holidays, leading to lower liquidity.