U.S. Stocks Mixed As Traders Wait For Stimulus News
Republicans And Democrats Make Progress Towards The Deal
The new U.S. coronavirus aid package remains the key factor that determines traders’ mood.
House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are set to continue their negotiations on Wednesday. Meanwhile, White House Chief of Staff Mark Meadows stated that Republicans and Democrats managed to achieve some progress in talks but more compromise was needed to reach a deal.
Traders are trying to evaluate the potential outcome of stimulus talks, and S&P 500 futures are swinging between gains and losses in premarket trading.
The U.S. economy clearly needs another round of stimulus but it remains to be seen whether U.S. lawmakers will be able to make a deal before the November election.
The absence of additional stimulus will likely put pressure on stocks, and the trading action is set to be volatile in the upcoming days while traders wait for the results of current negotiations.
U.S. Justice Department Files Antitrust Lawsuit Against Google
Yesterday, U.S. Justice Department filed antitrust lawsuit against Google in which it stated that Google abused its market power to put pressure on competitors. Google’s parent company, Alphabet, denied the allegations.
Alphabet’s stock ignored the news during the last trading session, gaining almost 1.5%. However, the lawsuit has just been filed, so there’ll be more news on this front in the upcoming months.
At this point, it looks like the market believes that Alphabet will have to pay a fine if it is found guilty while traders do not think that the lawsuit will lead to a breakup of the company.
EU States That Brexit Deal Is Within Reach
EU has just confirmed that it was ready to continue Brexit negotiations and stated that the deal was still within reach.
This statement boosted GBP/USD but failed to provide support to European markets as traders remained worried about the second wave of coronavirus in Europe.
While U.S. traders are mostly focused on U.S. stimulus negotiations, a no-deal Brexit presents a serious risk for all markets so traders should keep a close eye on the ongoing negotiations between EU and UK.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
