In spite of fresh calls for stimulus, there seems to be some disagreement over whether there’s a total gridlock, or whether we’ll see a new deal tabled within the next week or so.
Responding to the stimulus whispers, and a lack of ground-breaking corporate or economic news, global equities struggled for a reason to move on Tuesday – with the Monday drift continuing, alongside a lack of motivation to push higher.
Speaking on the stimulus hopes, and a quiet day for global equities, IG Chief Market Analyst, Chris Beauchamp, said: “A host of indicators suggest stock markets around the globe are stretched to the upside, and probably vulnerable to a near-term correction, but for now sellers do not seem to be able to summon up the necessary momentum to provide the spark for a big drop.”
“The rise in cases across the US seems finally to have galvanised American lawmakers into action, although the $900 billion discussed is certainly well below the mooted levels of late summer, and even this amount may not make it through unscathed.”
“Even if the bill does go through, the lack of a ‘trillion’ in the headline could mean markets greet it with a collective shrug, deeming it insufficient to provide a real boost for the US economy.”
Providing some glimmer of hope were US equities, with the Dow Jones opening with a 0.38% rally, keeping it above the 30k benchmark. Just short of last Friday’s all-time-high, the index sits at 30,183 points.
Elsewhere in global equities, Eurozone equities were all spurred on by the cheery US index open. The FTSE and DAX both finished up by 0.05%, having recovered 40 and 75 points, to finish at 6,558 and 13,278 points respectively. Meanwhile, even having recovered by 38 points, the CAC finished down by 0.23%, at 5,560 points.