Main indices in the US stock exchanges are still showing multidirectional movement on Tuesday. If the S&P 500 is growing rapidly to its maximum historical values, the Nasdaq, on the other hand, continues its negative correction.
US President Donald Trump's signing of the stimulus bill which bypassed Congress became the main vector of support for the stock market. According to the provisions of this document, incentive payments to unemployment benefits will be charged again which is now narrowed to $400. Approximately 75% of stimulus funding will come from the federal budget, and 25% will be assigned to local authorities.
In addition, Trump ratified a decree deferring tax payments on salaries of employees whose total annual income is less than $ 100,000. A moratorium on student loan payments and support measures for homeowners and tenants have also been maintained.
However, there is still no single decision of the country's two central parties regarding the incentive program. The Finance Minister issued a statement in which he indicated that the problematic situation could end at the end of this week, which means that the long-awaited agreement on a new program of stimulating the economy will be adopted soon.
In the meantime, President Trump's action of issuing his own decrees came in handy, since they provide a short-term respite for making final decisions. According to most experts, this is better than nothing at all. However, do not forget that this is a temporary solution that needs to be reinforced with more subsequent steps. The biggest concern of analysts now is that all eyes are on the Democrats and Republicans, which means that the pressure is extremely high, which can also affect the speed of decision-making.
Another unpleasant moment for market participants is the aggravation of the conflict between the United States and China. This is becoming a particular problem in the run-up to a new round of negotiations between countries on a trade agreement. It should be noted that the meeting of representatives of the states should take place at the end of this week. One of the points that is expected to be discussed will be the issue on China's imports of energy resources. However, the political background for the meeting is not very favorable. Last week, Trump imposed sanctions against high-ranking officials from Hong Kong and China, which was followed by a similar response from the Chinese authorities. In addition, the use of the TikTok application, which was developed in the PRC, was banned in the United States.
The Dow Jones Industrial Average at the end of the trading session on Monday increased by 1.3%, or 357.96 points, which allowed it to step up significantly to 27,791.44 points. This is the seventh climb in a row, and the victorious procession does not intend to slow down.
The Standard & Poor's 500 Index gained 0.27% or 9.19 points. Its level amounted to 3,360.47 points, coming close to its maximum value, which was fixed closer to the end of February this year. Recall that then the indicator level was 3,386.15 points. Moreover, its growth also continues for the seventh day in a row, which has not happened for a long time.
The Nasdaq Composite index was the only one that went into the negative zone: its indicators decreased by 0.39% or 42.63 points, to 10,968.36 points.
The European stock exchanges, on the contrary, experienced positive data in general. The main stock indicators are showing steady and rapid growth. Investors kept their eyes on the decision-making process for a new financial incentive program in the US.
The general index of large enterprises in the Stoxx Europe 600 increased immediately by 1.57% and amounted to 370.37 points.
The UK's FTSE 100 jumped nearly 2% adding 1.97%.
The German DAX Index rose 2.18%.
France's CAC 40 index rose confidently by 2.23%.
The Italian FTSE MIB index has become the leader of the growth today climbing 2.53%.
Spain's IBEX 35 index was slightly more modest adding 2.29%.
In addition to overseas news, the European stock market is playing back its internal statistics. The total number of working citizens in the country in the second quarter decreased by 220 000 compared to the previous quarter. Thus, the unemployment rate dropped to 32.92 million, which was the highest decline in the last eleven years.
