U.S. stocks increased Monday after President Trump signed the Covid 19 bailout plan, rejecting a government closure and ending uncertainty over the implementation of the expenditure plan.
The Dow Jones industrial average rose by 243 points, or 0.8%, to 30442. The S&P 500 increased by 1% and the Nasdaq Composite by 1%.
Trump’s signature of the $900 billion bill paves the way for the government to make direct payments to U.S. families as the growing coronavirus pandemic continues to disrupt the economy and social life. Investors expect this additional expenditure to help alleviate economic conditions in a context of State and local government restrictions on the management of Covida 19 during the winter.
Under pressure from all sides, President Trump signed the $900 billion Covid-19 rescue plan on Sunday.
Andrew Caballero-Reynolds/France Press/Getty Images
Economically, it is a great support to get through this difficult winter period, says Hani Redha, Multi-Asset Portfolio Manager at PineBridge Investments. The market remains in a constructive atmosphere.
Market shares in the travel sector on Monday were among the strongest rises in the market. Many of these companies have been hard hit by the restrictions associated with the pandemic, making them particularly cheap in the eyes of investors.
in the U.S. airlines, which receive a $15 billion rescue package to bring employees back on leave, increased by 3.2%. The company’s shares fell by 44% this year, while the S&P 500 rose by 16%.
Norwegian cruise line
increased by 4.8% and another cruise operator
by 4.4%. Both stocks are still down by more than 50% in 2020, due to the general cessation of car traffic worldwide.
In the meantime, technological values have taken a step backwards.
Increase video communication
5.8% slip and
a decrease of 9.7%. Despite Monday’s measures, the actions of companies focusing on e-commerce, online communication and home entertainment are among the best in the market this year, showing how much consumer behavior has changed in the wake of the pandemic lockdown.
Excluding Germany, the pan-continental Stoxx Europe 600 increased by 0.7%. The British markets were closed on Boxing Day.
The climate in the region was ignited after the European Union started distributing vaccines against the Covid 19 virus on Sunday. A few days earlier, the EU concluded a post-Brexit trade agreement with the United Kingdom, ending years of uncertainty about future relations between the two parties.
With each passing day, we remove more uncertainty than we add, Redha said.
Trade in Asia has been closed in a mixed way. The Shanghai composite index changed little, while Japan’s Nikkei 225 won 0.7%. Hong Kong’s Hang Seng fell by 0.3%.
The shares of Alibaba Group Holding listed in Hong Kong fell by 8%. The Central Bank of China issued a very clear statement on Sunday in which it criticised the ant’s trading practices and ordered the financial giant to focus on the trade in digital payments.
Looking ahead, analysts say trading volumes are expected to remain low this week as many investors and traders benefit from the holiday season. The markets in the US remain closed on Fridays for the New Year holiday.
The agreement between Britain and the European Union took place on Thursday, a few days before the end of the year. It gives Britain a lot of freedom to deviate from EU rules and to conclude free trade agreements with other countries. Photo: Paul Grover / Pool
Copyright ©2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8
what stocks are up today,stimulus news update,update on 2nd stimulus,2nd government stimulus check