Stocks fell after a six-week high reversing a coronavirus recovery. Traders are no longer waiting for an agreement for the U.S. stimulus as it is expected the coronavirus aid package will be introduced after the November election. The International Monetary Fund warned an economic recovery will not be smooth until the virus is tamed as they prepare an annual meeting with the World Bank to discuss the worst economic recession since the Great Depression.
Traders are boosting their stock purchases in anticipation for a consensus on the new coronavirus aid package. There is a disagreement between the Democrat proposed relief package and the administration, despite Trump upping his counteroffer to $1.8 trillion to compromise on the Democrat’s $2.2 trillion proposal for the relief package. Trump proposed using leftover funds from the now expired Paycheck Protection Program to fund the basic package to help businesses and individuals survive coronavirus’ economic destruction. The U.S. dollar index is down 0.07% at 93.045 [USD/] due to this uncertainty.
However, talks are scheduled this week to come to an agreement and move forward and only then will we see the stock market getting back on track. Hopes that Joe Biden will win the U.S. presidential election increase the likelihood of a big stimulus package being implemented. Wall Street’s main indexes opened higher this week as optimism about the fiscal stimulus deal prevails.
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Apple Inc is due to announce their new iPhone today which has boosted technology stocks with shares in Apple surging 6.4%.
China are recovering from pandemic damages with exports rising 9.9% and imports switching to positive as reports from September become public.
As Europe continues to introduce harsher coronavirus measures there is an expected decrease in demand for oil. Furthermore, Norway’s strike affecting oil production has been lifted along with Libya’s largest oilfield restarting production. As a consequence, many stocks in the energy sector are losing ground in premarket trading.
Johnson & Johnson have announced they are pausing their COVID-19 clinical trials due to an unexplained illness of a study participant. This happened after AstraZeneca paused their late-stage trials for a vaccine in September due to similar reasons.
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