Donald Trump sent stocks sharply lower late Tuesday when he tweeted that he has negotiations over a new coronavirus aid package.

Trump said, “Nancy Pelosi is asking for 2.4 Trillion Dollars to bail out poorly run, high crime, Democrat States, money that is in no way related to COVID-19. We made a very generous offer of 1.6 Trillion Dollars, and, as usual, she is not negotiating in good faith. I am rejecting their request and looking to the future of our country.”

His words led to a 2% sell-off in indices, and most stocks fell hard. Gold and silver were also slammed.

However, none of this seems to matter right now as of the London session, indices are up 1%, and gold and silver are soaring. It seems that fiscal stimulus is no longer necessary for stocks to rally, and the Fed with its money printing might be enough. 

Later in the day, the FOMC minutes from the September\s meeting will be released. That meeting was a failure for stocks, and they have been down ever since as the Fed failed to announce more stimulus. Today’s minutes might also bring a negative sentiment. 

In the FX, the important levels have so far been defended, and the EURUSD pair remains below 1.18, while the cable is still trading below the 1.30 psychological resistance. 

Source: https://www.axiory.com/market-news/tuesday-s-decline-nearly-erased-as-fiscal-stimulus-no-longer-necessary

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About Author

Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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