Markets bounce back on stimulus hopes
Markets today bounced back as stimulus talks have come back into question. The NASDAQ is up around 0.7%, while the S&P 500 and the Dow Jones were up 0.8% and 0.43%, respectively.
This is after the Market’s fell around 1.4% a couple of days ago on Trump’s tweet, stating that he has entirely stopped stimulus talks, saying Nancy Pelosi has been negotiating in “bad faith.” However, Trump has slowly come back on the statement, as Trump allies believe it may have created the political risk he’d be blamed entirely for the economic fallout. He told Fox Business that he has reinstated talks about a stimulus bill and is now “starting to work out.” “We started talking, and we’re talking about airlines and we’re talking about a bigger deal than airlines. We’re talking about a deal with $1,200 per person, we’re talking about other things.”
The contested stimulus bill was between the Democrat’s $2.4 Trillion dollar proposal versus the Republican’s $1.6 Trillion dollar proposal. The Democrats have countered with $2.2 Trillion. However, the white house has not provided a counteroffer to that proposal. Nancy Pelosi is also pressing for language in the bill to limit Trump’s ability to deliver virus testing and treatment funds to other projects.
Oil Markets seeing a rise
Furthermore, we saw Brent Crude and WTI rise around 3.3% as energy companies on the Gulf coast evacuated 183 offshore oil platforms and halted nearly 1.5 million barrels per day as a safety precaution to Hurricane Delta. WTI and Brent are hovering around $41.25 and $43.32, respectively.
Europe Markets seeing a slight sell-off
In the European markets, we saw the EUR/USD sell-off after ECB officials signaled that they were ready to ensure inflation moved towards their mandate, including slashing their already negatives rates and broadening their Targeted Longer-Term Refinancing Operations (TLTRO’s), which stimulates banks to lend. EUR/USD is down around 0.2%.
