European equity markets
European equity markets are consolidating, with the German index opening almost unchanged on the day. Stimulus hopes are keeping the rally alive – Stock Market Analysis Today: Investors hopeful for a fiscal stimulus deal.
Only two days after US President Trump announced he will halt stimulus talks with Democrats, there was a big U-turn overnight.
The White House is seeking to resume negotiations about a large-scale stimulus package. While a deal between Republicans and Democrats ahead of the US presidential election still seems unlikely, market participants are reacting positively to signals that both parties are feeling the pressure to take action as the economic recovery may soon run out of steam.
Markets have an intense three weeks ahead of them, and just as President Trump´s mood swings are getting worse, price swings could get bigger.
Investors seem to be fully counting on further stimulus measures to counter the significant headwinds to the economy, and there is little interest to fight the trend.
Furthermore, the fact that the EU states managed to agree on a massive stimulus package back in July has significantly boosted confidence, from which European stock markets and the Euro are still benefiting today.
Meanwhile, market participants do not seem overly worried yet about the sharp increase in coronavirus cases in Europe. While the number of restrictions is increasing across the continent, governments are trying to do their best to avoid nationwide lockdowns.
Stock Market Analysis Today: Investors hopeful for a fiscal stimulus deal