Stock and commodity markets are rising in anticipation of the new aid package

2020-12-16 12:05:51
Machine translation
Stock and commodity markets are rising in anticipation of the new aid package

Yesterday the us stock and commodity markets traded in the green zone on the background of voting for the election of President Biden, and accelerating negotiations between Democrats and Republicans regarding the volume of the new package of economic aid in the United States.


the representatives of the Democratic and Republican parties on Tuesday held two meetings, and almost reached an agreement on the amount of the aid package to $748 billion, which they want to receive before the Christmas holidays at the end of this year. Recall that in spring in the background of the pandemic was the previous aid package, which passed in the U.S., included the provision of economic incentives, including cheap loans and state grants totaling over $3 trillion.. Second aid package discussed in the summer, and lawmakers cannot agree on the amount and where it will be invested.


At the end of yesterday's trading on the stock exchanges stocks rose:
1.1 to 1.3% including the S&P 500.
1.3% and the Dow Jones Industrial Average;
1,1%, Nasdaq Composite + 1,2%;
soybean futures and corn rose 1.5-2%.


Thanks to the huge infusion of funds into the US economy, stock prices by 2020 has shown significant growth despite the economic decline, and the increase of speculative capital on the stock exchanges became the reason of growth of prices for wheat futures soybean and corn, and increased demand from China led to the growth of prices on commodity markets, which in turn starts the process of inflation.

due to the fact that the increase in the price of fodder has caused the rising cost of meat and milk producers in the United States by 10-12% — it will lead to higher prices for their products.

the depreciation of the Dollar against the Euro continues, and during the year, the decline was from 1.1 to 1.21 euros to the dollar.


investors in the US are closely monitoring the prospects of the bill on incentives, but very careful, because with the advent of the new presidential Administration, there is a possibility of strengthening of quarantine measures in the coming months, despite the outbreak spread in the United States vaccine against the coronavirus.


on Monday the death toll from the coronavirus in the United States exceeded 300,000. Despite the shift from the development of medicines, the pandemic still threatens to undermine the economic recovery. In the United States, the incidence reaches record rate: the average over the last 7 days in the sick day 218 thousand persons that on 100 thousand more than the previous month. Yes, and unemployment are all easy, the us labor market is weakening with each passing week, judging by the growth in the number of applications for assistance.


if the aid package in the U.S. lawmakers do not take up to the end of the year, the markets will react negatively and significantly to collapse before the end of the year.

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