The Wednesday Market Minute
- Global stocks mixed as markets react to contradictory statements on stimulus from President Donald Trump.
- Hours after ordering White House officials to stop negotiating with Democrats, Trump suggested he would sign a ‘stand alone’ bill to support airlines and small businesses.
- White House economic adviser Larry Kudlow tells CNBC a piecemeal agreement on stimulus is a “low probability event”.
- The U.S. dollar edges higher amid the stimulus uncertainty, made more complicated by the President’s coronavirus diagnosis, while benchmark 10-year Treasury yields hold at 0.764%.
- Oil prices eases as the Energy Department trims near-term demand forecasts and Hurricane Delta slows to a category 3 storm as it heads towards the crude production areas of the Louisiana coast.
- U.S. equity futures suggest a firmer open on Wall Street, with a 240 point gain priced for the Dow Jones Industrial Average.
U.S. equity futures powered ahead Wednesday, while the dollar inched higher against its global peers, as markets reacted to a U-turn on stimulus talks from President Donald Trump that could signal a breakthrough in talks from lawmakers in Washington.
Just hours after ordering his White House staff — many of whom remain in self-isolation following the his coronavirus infection last week — to cease negotiating with Democratic lawmakers to try and bridge a $600 billion gap between rival stimulus bills, Trump Tweeted his willingness to sign a ‘stand alone’ agreement that would provide paycheck protection to small businesses and $25 billion in support to U.S. airlines.
While a smaller, more targeted bill is something House Speaker Nancy Pelosi has advocated for in the past, it’s difficult to tell at this stage in the election campaign, with just four weeks