Global stocks were higher on Monday, as investors mostly pinned their hopes on a new US fiscal stimulus deal that crosses the line.
US stock futures surged 1% even after House Speaker Nancy Pelosi rejected the Trump administration's latest proposal or a stripped-down version of the coronavirus bailout bill, calling it "grossly inadequate" over the weekend. The dollar index, meanwhile, fell 0.5%.
President Donald Trump's team has proposed a $ 1.8 trillion stimulus package that includes a $ 400 increase in weekly unemployment insurance, $ 1,200 incentive checks for U.S. adults, and $ 1,000 checks for each child.
The MSCI World Index is up 0.7% as global markets move in a position of risk and investors hope a package of financial stimulus measures will be adopted soon. But House Democrats appear to be sticking to their original $ 2.2 trillion plan.
“Even if the White House capitulates, getting that figure through the Senate will not be easy,” said Jeffrey Halley, senior market analyst at OANDA, “as markets are now completely ignoring the possibility that the fiscal stimulus package will fail and accumulate” “buy it all,” amendment. if the negotiations fall apart, it might be interesting. ”
However, the more positive sentiment continued in the European region, where the Euro Stoxx 50 blue-chip index rose 0.3% and the German DAX rose 0.2%.
London's FTSE 100 fell 0.2% ahead of a host of new COVID-19 restrictions across the country by conservative Prime Minister Boris Johnson following a sharp rise in new infections. The UK already has the highest death rate in Europe.
In Asia, China's benchmark index jumped to a two-year high after the People's Bank of China introduced a new policy that makes it easier to short-sell the yuan, which fell nearly 1% against the dollar.
The central bank no longer requires lenders to hold reserves when purchasing foreign exchange forward contracts. OANDA's Halley said that the yuan's appreciation is likely to resume after these measures end.
China's Shanghai Composite Index is up 2.6% and Hong Kong's Hang Seng Index is up 2.2%, while the stronger yen is down 0.3% from the Japanese Nikkei.
Gold rose 0.2% to $ 1,929 an ounce on the back of a weaker dollar. Gold's stability indicates "positive technical developments that should signal further gains in the coming week," Halley said.