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.  

Source: https://www.axiory.com/market-news/us-equities-continue-higher-as-the-world-battles-another-wave-of-infections

Share.

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.

Comments are closed.