Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Vladimir Zernov
U.S. Stock Market

Coronavirus Aid Package Negotiations Are Set To Continue

U.S. Republicans and Democrats failed to reach consensus on the new coronavirus aid package over the weekend, and U.S. President Donald Trump decided to use executive orders to extend benefits and stop evictions in absence of a comprehensive deal.

The new unemployment benefits will decrease from $600 per week to $400 per week, supporting the laid off workers but also providing them with an incentive to get back to work.


Meanwhile, Treasury Secretary Steven Mnuchin and U.S. House Speaker Nancy Pelosi have signaled that the parties were ready to re-start talks in order to find a solution for longer-term support of the U.S. economy.

There is little doubt that U.S. needs a comprehensive aid package as Unemployment Rate remains above 10% while Personal Spending may decline in case U.S. workers do not receive additional support.


China Sanctions U.S. Officials

China has imposed sanctions on eleven U.S. citizens including Senators Marco Rubio and Ted Cruz in retailiation for sanctions on Chinese officials related to the new security law in China.

Interestingly, China has recently arrested a Hong Kong media tycoon who supported the pro-democracy opposition. This arrest may trigger another round of tensions between U.S. and China.

So far, the market has mostly ignored the increasing U.S. – China tensions. It looks like traders believe that the first phase of the trade deal between U.S. and China is safe until U.S. elections in November while it’s too early to position portfolios for post-election period.

Positive Data From China Supports Stocks

China has recently released its producer prices index for July, which indicated that producer prices declined by 2.4% on a year-over-year basis compared to analyst consensus which called for a decline of 2.5%.

In June, PPI was -3%, so there are signs that producer prices are improving, which signals that China’s manufacturing sector is rebounding after the hit dealt by the coronavirus pandemic.

Data from China is seen as a leading indicator for the rest of the world since the country has managed to contain the coronavirus pandemic earlier than other nations.

S&P 500 futures are mixed in premarket trading as they are already close to all-time highs and will likely require stronger catalysts to continue their upside move.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.