$2.4 Trillion Stimulus Package Proposed in US With Second Direct Payments to Americans.
The markets start October with gains, supported by a US fiscal stimulus plan that began to be proposed in July but that was stalled in the political battle. Tonight representatives of the two major parties have expressed their confidence in the approval of a package of measures on which the differences persist.
Thus, while the Treasury starts from a proposal of 1.5 trillion dollars, the Democrats aspire to 2.2. In any case, it would be a balm for some trading floors that yesterday woke up scared by the harshness of the confrontation between Trump and Biden, worried that the current president will not accept an eventual defeat (something to which he has not committed himself).
The European stock markets have opened with important rises and although, at some later point, they have weakened, in the middle of the session they rise again with more force supported by the proposal of fiscal stimulus in the United States. until almost touching 6,800 points, in line with the rises of the Ftse de Londres and the Cac de Paris. Within the selective, Siemens Gamesa, Grifols and Almirall are the most bullish while the most bulky cuts are for IAG, Sabadell and Aena, which fell more than 2%.
In Asian markets, the Tokyo Stock Exchange had to close the session early due to technical problems, when it rose 0.5%. Futures (listed in Osaka) have subsequently accelerated earnings. The rest of Asia is also up.
The expectation of fiscal stimuli, in any case, has not unleashed the euphoria either, given the long history of disagreements. If anything, the market has also been relieved by positive economic data. Yesterday it was the Chinese industrial PMI (overlapped by the debate) and yesterday the employment data of the private consultancy ADP.
Enough elements, thus, to stop the somewhat negative tone of September, which left the Ibex with a fall of 3.6%, similar this time to that registered by the United States and the Euro Stoxx 50. Today’s mood is also noticeable , in currencies. The dollar fell to 1.1725 units per euro, and also lost positions against other currencies considered to be somewhat higher risk. Although the firmness of the yen indicates, in turn, little conviction in the movements. The Japanese currency falls when the market has a greater appetite for risk.
In the debt market, the 10-year US bond advances two basis points, a sign that money is not fleeing the stock market. Spanish is around 0.25% after hitting prepandemic levels yesterday.