Stocks up despite Stimulus uncertainty
U.S. stocks were up on Wednesday despite the uncertainty surrounding a recent round of Federal aid talks.
Market volatility came as President Trump abruptly called for an end to stimulus talks, as his cabinet and the Democrats continue to negotiate what many believe will be a historic aid package.
Despite the tensions on the larger stimulus bill, Trump highlighted that the Airline industry needed urgent support, and urged congress to push through a package for the sector, which has struggled as a result of the COVID-19 pandemic.
The Dow Jones traded 1.91% higher, with the airline index jumping 2.6%. The S&P 500 rose close to 1.75%, while the NASDAQ gained 1.59%.
UK grow hopeful on Brexit deal
With just over a week before the October 15th deadline set by Prime Minister Boris Johnson, UK negotiators pushed the EU to finalise a deal prior to this date.
Regarding Britain’s position, Chief Negotiator David Frost stated that, “The landing zone and the nature of the agreement is pretty clear if not exactly pinned down”.
He remained firm on next week’s deadline and added, “As we approach the 15th – and it is very close already – I will have to advise the prime minister on whether the conditions in his statement have been met or not, and we will have to consider the situation at that point,” Frost stated.
The FTSE 100 was marginally down on the day.
Oil price on the rise
Crude oil prices once again revisited the long term resistance level of $40 per barrel, and as such traders now wonder if we could be set for further price increases in the near future.
Supply and demand plays a crucial role in the price of oil, with OPEC and other oil-producing nations stating that they will continue to monitor demand levels, and potentially adjust supply if an emergency arises.
As of 4pm, WTI Crude Oil was trading at an even $40 per barrel after falling 1.65% on the day.
Quote of the day – “Bulls make money, bears make money, pigs get slaughtered.” – Unknown
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Senior Market Analyst