Markets look for positive outcome in US stimulus talks

Markets look for positive outcome in US stimulus talks 150 150 Realm

In the US, House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are due to talk again today. Markets are hoping for some kind of agreement before the weekend.

On Tuesday, European stocks ended mostly lower with investors largely making cautious moves as they closely followed the developments over U.S. stimulus talks and updates on virus cases, and reacting to earnings reports and other corporate news. The FTSE 100 closed up 0.1% at 5,889 on Tuesday as gains in airliners were capped by concerns over tougher coronavirus lockdowns and Brexit-related uncertainty. IAG and Easyjet rose more than 5% after one-hour Covid-19 tests for passengers traveling to destinations that require pre-departure tests became available at Heathrow airport. Meanwhile, UK PM Boris Johnson is set to impose the strictest coronavirus restrictions in Greater Manchester, ending an 11 day standoff between the government and northern leaders, who wanted more funding to support businesses and households hit by the measures.

US stocks closed modestly higher as investors continued to hope the lawmakers will eventually agree on a stimulus plan sometime soon. House Speaker Nancy Pelosi said she was hopeful that a stimulus agreement could be reached this week. Reports that Moderna’s coronavirus vaccine could be available for emergency use in December if it gets positive results from interim trial in November further aided sentiment. On the macro front, housing starts were lower-than-expected while building permits came higher than anticipated. The Dow Jones was up more than 250 points, the S&P gained 1.2 percent and Nasdaq was up almost 1%.

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