Stocks Move Higher After Trump Signs Coronavirus Aid Package

World Markets Advance On Stimulus Optimism

S&P 500 futures are gaining ground in premarket trading as traders cheer the new stimulus package.

On Sunday, U.S. President Donald Trump signed the new coronavirus aid and spending bill, averting a government shutdown and providing additional help to the economy.

Previously, Trump tried to increase the amount in stimulus checks from $600 to $2,000 but this measure did not get bipartisan support. Democrats will try to push for the increased $2,000 stimulus checks on Monday but it remains to be seen whether Republicans will be ready to support additional spending.

Anyway, the new stimulus package has already served as a bullish catalyst for the world markets. With no important economic reports scheduled to be released today, there’s little that can detract traders from positive stimulus news.

EU Begins Its Mass Vaccination Program

On Sunday, EU began to roll out COVID-19 vaccination across its member states. The new, more infectious strain of coronavirus has already been found in several EU countries, and it is clear that mass vaccination is the only way to get back to normal life.

In addition to vaccine optimism, markets are happy about the outcome of Brexit negotiations. Britain will leave the EU with a trade deal and avoid a chaotic no-deal Brexit.

Judging by the recent dynamics of the British pound, this outcome has been already priced in by foreign exchange market traders, but it looks like equity traders have some work to do to catch up with the recent developments on this front.

Oil Continues To Move Higher As Vaccine Optimism Remains Strong

Oil may be one of the main beneficiaries of vaccine and stimulus news as it continues to move towards the psychologically important $50 level.

In recent weeks, oil traders have successfully ignored all news about lockdowns which indicated that they were firmly focused on the longer-term outlook for oil demand.

This is good for oil-related equities which have recently suffered a correction and now look ready to continue their previous upside move together with the price of oil.

For a look at all of today’s economic events, check out our economic calendar.