Pelosi Assembles Multi-Trillion Stimulus Plan

September 25, 2020

By Orbex

Renewed Stimulus Talks Spurs on Stocks

The US index hinted at exhaustion at it closed 0.10% lower yesterday, after gaining 2.4% over the month.

The 7-week high led to a pullback as US jobless claims were disappointing. Claims crept higher as the pace of the economic rebound showed signs of stagnating.

US stocks reacted positively to news of efforts to enact further stimulus in Washington. This led to indices closing higher on Thursday.

Apple, Amazon, Facebook and Tesla all managed gains as the session came to a close.

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Democrats in the House of Representatives are working on a $2.2 trillion coronavirus stimulus package that could be voted on next week.

The Euro Turns Positive but for How Long?

The euro closed 0.08% higher yesterday, as it managed to turn around an unpleasant week against the dollar.

This was despite PMI figures signaling a stalling economy as the rebound from COVID-19 fades.

However, Germany and France, the eurozone’s two biggest economies, saw manufacturing rise in September.

As we move into the winter months, will COVID bite back against the frail economy?

New UK Job Scheme Cannot Save Every Business

The pound was able to claw back a bit of ground to end a 4-day decline against the dollar.

The GBPUSD pair ended 0.21% higher after the UK chancellor announced his post-furlough plan. Rishi Sunak stated that the scheme would benefit large numbers, but warned the government can’t save every job.

However, employers have spoken out against the new measures, saying that it is unviable for all businesses.

Fears of mass unemployment were heightened for when the job support scheme comes into place in November.

Geo-Politics Look to Spur Gold Back to $1900

Gold took a breather on Thursday, closing 0.21% higher as it attempts to regain the $1900 handle.

After dropping to a 2-month low this week, the shift in risk sentiment could spur the yellow metal as we move closer to the presidential elections.

Oil Bounces Off Weakened Demand Headlines

WTI closed 1.80% higher as it once again closed above the $40 handle.

The recent announcement of Libya’s oil production has seen three ports opening for shipping crude. This could lead to an oversupply which could see oil prices turn lower in the long term.

By Orbex