Global stocks rise as hopes for prompt US fiscal stimulus revive the ‘buy everything’ trade

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Traders gather at the post that trades Pfizer's stock on the floor of the New York Stock Exchange October 29, 2015.   REUTERS/Brendan McDermid

Summary List PlacementGlobal stocks rose on Monday as investors held onto hopes for a prompt deal on a new round of US fiscal stimulus, boosted by the White House’s change in position over the weekend.
US stock futures rose as much as 1%, even after House Speaker Nancy Pelosi rejected the Trump administration’s latest proposal on Sunday.
In Asia, China stocks rose to a two-year peak, driven by a new central bank policy that makes it easier to sell the yuan.
The FTSE 100 edged slightly lower ahead of Prime Minister Boris Johnson’s expected announcements on stricter COVID-19 restrictions across the country.
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Global stocks rose on Monday as investors largely pinned hopes on a new US fiscal stimulus deal to get across the line.

US stock futures rose as much as 1% even after House Speaker Nancy Pelosi rejected the Trump administration’s latest proposal, or a stripped-down version of the coronavirus relief bill, calling it “grossly inadequate” over the weekend. The dollar index, meanwhile, fell 0.5%.

President Donald Trump’s team proposed a $1.8 trillion stimulus package, which includes a $400 boost in weekly unemployment insurance, $1,200 stimulus checks for US adults, and $1,000 checks for every child.

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The MSCI World Index rose 0.7% as global markets rotate into a risk-seeking position and investor hopes persist that a fiscal stimulus package is on the horizon. But House Democrats appear to be sticking to their original $2.2 trillion plan.

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“Even if the White House capitulates, getting that number through the Senate will be challenging,” said Jeffrey Halley, a senior market analyst at OANDA. “With markets now totally ignoring the possibility of a fiscal stimulus package not happening and piling into the ‘buy everything’ trade, the correction if negotiations fall apart could be something to behold.”

Nonetheless, the more positive mood carried over to the European region, where the Euro Stoxx 50 index of eurozone blue-chip shares rose 0.3% and Germany’s DAX rose 0.2%.

London’s FTSE 100 fell 0.2%, ahead of a slew of new COVID-19 restrictions across the country from Conservative Prime Minister Boris Johnson following an explosion in new cases. Britain already has the highest death rate in Europe.


In Asia, China’s benchmark index jumped to a two-year …read more

Source:: Business Insider

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