A rebound in coronavirus-hit stock market values is holding amid signs the hotly anticipated $2trn US stimulus package will be signed off later on Wednesday.
The Dow Jones Industrial Average had its best session, in percentage terms, since 1933 while the FTSE 100 gained the most in a day for 12 years on Tuesday as evidence mounted a deal had been done pending crucial Congressional votes.
The package is expected to include direct payments to US households and aid for small businesses, the travel industry, hospitals and local government as the country gradually shuts down to fight COVID-19.
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Political wrangling over the Bill’s contents in the world’s largest economy meant it was the elephant in the room for investors following a slew of economic support from other governments and central banks globally.
Asian stocks followed the US and Europe in making big strides in Wednesday deals – with Japan’s Nikkei rising by 5.3% while Hong Kong was 3% up.
The FTSE in London was tipped to add about 1% at the open though US indices were pointing to a more nervous start to the day.
Jasper Lawler, head of research at London Capital Group, said: “Investors are buying with some pragmatic hope.
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“The hope is that strict ‘stay home’ measures and a whole lot of government and easy money stimulus will get us through this.
“Investors have been waiting for the US to take the lead on global stimulus efforts.
“The Fed have done their bit. It looks like lawmakers will too on Wednesday according to White House official Eric Ueland.
“We’re expecting a deal in the region of $ 2trn including every American getting cut a check (cheque).”
Source : Sky News