Stocks Move Higher On Stimulus Hopes
Yesterday, U.S. Treasury Secretary Steven Mnuchin offered a new $916 billion coronavirus aid package which included a $600 direct payment to most Americans.
Previously, Republicans and Democrats were discussing a bipartisan proposal worth $908 billion so Mnuchin’s offer was a new move in current negotiations.
Today, the U.S. House of Representatives is set to vote on a one-week stopgap funding bill in order to avoid a government shutdown and buy more time for stimulus negotiations. Current funding levels for the government will be extended until December 18.
Both Democrats and Republicans want to attach the new coronavirus aid package to the government funding bill, and it looks like the current goal is to reach a compromise deal before Christmas.
S&P 500 futures are gaining ground in premarket trading as traders hope that a new round of economic stimulus will provide enough support to the economic recovery.
Brexit Drama Is Close To Its End
Today, British Prime Minister Boris Johnson will discuss the Brexit deal with the President of the European Commission Ursula von der Leyen. These negotiations are believed to be the last chance to reach a compromise deal.
Johnson has already stated that no British leader would agree to some EU demands. In turn, the EU side reiterated that Britain must make concessions and that the European Union was ready for a no-deal outcome.
A no-deal Brexit could be a serious shock for the world markets. However, traders are optimistic, and the Brexit-sensitive GBP/USD is enjoying strong support in today’s trading session.
Sinopharm COVID-19 Vaccine Shows 86% Efficacy
United Arab Emirates reported that China’s Sinopham vaccine showed 86% efficacy in late-stage trials which were conducted in the country. UAE also noted that researchers did not have any serious safety concerns.
This news is a positive development for the world markets as many economies remain under pressure from the second wave of the virus.
While vaccination programs will not be able to change the situation in the next few months, traders remain focused on longer-term recovery and look ready to push stocks to new highs.
For a look at all of today’s economic events, check out our economic calendar.