Investors believe Trump earlier than Brexit and vaccines

Investors believe Trump earlier than Brexit and vaccines

The S&P 500 sets a record for the stimulus plan that Trump approved by surprise on Monday. The market recovers some of the optimism

Acting US President Donald Trump upon his arrival at the White House in Washington on December 12, 2020. |  EFE / EPA / YG / Archive

US stocks rallied on Monday after the president Donald Trump drop the threats and sign a coronavirus relief package.

The S&P 500 It reached an all-time high on Monday after the surprise approval of the combined package of aid and public financing to alleviate the damage of Covid-19 in the US. The value of the plan is $ 2.3 trillion.

In Europe, the DAX 30 index rose to a record while the MSCI Asia Pacific index improved slightly. US Treasuries fell and the dollar strengthened.

Bitcoin contracted after a rally over the Christmas holidays pushed it past $ 28,000 for the first time.

International investors therefore applauded the US aid package, restoring some of the optimism that drove global stocks to a record high this month, even as the pandemic intensified.


Economic growth

In passing the bill, Trump also demanded a vote in Congress to replace the $ 600 in direct stimulus payments with another $ 2,000, a non-binding request that is unlikely to pass both houses.

Even so, Goldman Sachs improved its economic growth forecast for the United States in the first quarter of the year due to this measure.

“The new law is broad enough to make a significant difference to people,” Dennis DeBusschere, head of portfolio strategy at Evercore ISI, said in a note to clients.

“Ignore the noise about ‘disappointing’ controls and focus on setting up for a strong economic recovery during 2021, particularly in the services sector.”

Ant Group, the headache

Alibaba Group crashed in Hong Kong despite pushing its share buyback program to $ 10 billion amid ongoing concern over China’s investigation into alleged monopolistic practices.

Regulators ordered over the weekend to Ant Group to return to its roots as a payment service provider, a development that threatens to stunt its growth.

On the coronavirus front, more restrictions are being imposed to combat the spread of the new, more infectious strain.

Indonesia imposed a temporary ban on all foreigners from visiting the country, while Taiwan will increase the quarantine period for flight crews to seven days.

Meanwhile, the European Union launched a continent-wide vaccination campaign less than a week after approving the vaccine for Pfizer Y Biontech.

The pound weakened after the UK last week closed a landmark Brexit trade deal with the European Union. ● A report by Vildana Hajric