Stocks open higher with stimulus talks resuming in US

Stocks open higher with stimulus talks resuming in US 150 150 Realm

Signaling a change of attitude on Thursday, President Trump said that talks between his administration and Congress were back on track and there was a good chance an agreement on a new stimulus package could be agreed to revive the economy.

 

Global Macro

  • The number of Americans filling for unemployment benefits rose by 840 thousand in the week ended October 3rd, compared to an upwardly revised 849 thousand in the previous period and above market expectations of 820 thousand. It was the sixth consecutive week with claims stuck at the 800 thousand level, pointing to a slowdown in the labor market recovery. On a non-seasonally adjusted basis, the number of initial claims rose to 804 thousand, from 799 thousand in the previous week. Also, more than 464 thousand people applied for help from the Pandemic Unemployment Assistance scheme, which covers workers that do not qualify for initial claims.
  • 820 thousand American workers are expected to have filed unemployment benefits during the week ending October 3rd, compared to 837 thousand in the previous week. It would be the sixth consecutive week with claims below 1 million although the number still remains elevated, signalling a slow labor market recovery. Since mid March when the coronavirus crisis started, more than 62 million Americans have asked for jobless benefits but roughly half the jobs lost in March and April have been recovered as states reopened their economies. Meanwhile, continuing claims are projected to fall to 11.4 million on September 26th from 11.77 million. 
  • On Thursday: European stocks ended higher as the mood remained positive almost right through the session amid optimism about a partial fiscal stimulus in the U.S. U.S. President Donald Trump, who said that he has instructed his administration’s negotiators to halt discussions with Democrats over a coronavirus relief plan, tweeted later that night that he would support individual stimulus measures, such as aid to airlines and small businesses, following which U.S. stocks staged a splendid rally. US stocks saw further upside during trading. With the upward move on the day, the major averages reached their best closing levels in over a month. The strength on Wall Street reflected continued optimism about a coronavirus stimulus bill following the latest comments from President Donald Trump.

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