US equity futures rose on Monday after President Trump signed an aid bill for Covid-19 Which he had slammed last week, putting an end to the uncertainty about the spending package rollout.
S&P 500 futures rose 0.7%, indicating that the benchmark will open higher after the opening bell in New York. Market-wide scale It ended last week down roughly 0.2%. The contracts linked to the technology-focused Nasdaq-100 index advanced 0.8% on Monday.
Mr Trump’s signature of a $ 900 billion bill paves the way for the government to make direct payments to American households such as Coronavirus pandemic escalates It continues to disrupt business and social activity. Investors expect the extra spending to help ease the economy amid restrictions imposed by states and local authorities to manage the spread of Covid-19 in the winter.
“Overnight, we got the stimulus package entirely out of the blue. Economically, it is a big boost to overcome this tough winter period,” said Hani Reda, director of a multi-asset portfolio at PineBridge Investments. “The market will remain in a constructive mood.”
Trading this week is likely to remain subdued, as many people take a vacation at the end of the year. Decreased trading volume may lead to large movements in the markets.
In bond markets, the yield on the 10-year Treasury rose to 0.955% from 0.933% on Thursday, when trading ended over the Christmas holidays. Yields rise when prices fall.
Abroad, the Stoxx Europe 600 continental index is up 0.8%. Markets in the UK were closed on Boxing Day.
Sentiment rebounded in the region after the European Union began distributing Covid-19 vaccines on Sunday. Just days ago, the European Union arrived Post-Brexit trade agreement With the United Kingdom, an end to years of uncertainty about future relations between the two sides.
“Every day that passes, we remove doubts more than we add,” said Mr. Reda.
Trading in Asia closed mixed. China’s Shanghai Composite was largely flat while Japan’s Nikkei 225 rose 0.7%. Hong Kong’s Hang Seng is down 0.3%.
Hong Kong shares listed in Alibaba Group Holding down 8% on Monday. China’s central bank issued a strongly worded statement on Sunday criticizing Ant’s business practices and directing the fintech giant to refocus its focus on the digital payments business.
Write to Caitlin Ostroff at [email protected]
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