In a surprising turn of events, the European markets didn’t follow the lead of the Dow Jones on Wednesday morning, instead bobbing about in the green.
One of the main reasons the markets were so happy that Trump was discharged from hospital on Monday night was that it seemed like it would prevent any further delays to a new covid-19 stimulus package.
Well, exactly the opposite happened, as Trump completely shut down the negotiations between Nancy Pelosi and Treasury Secretary Steven Mnuchin. The President tweeted that the Democrats were just seeking help for their ‘failed, high crime, Cities and States’, and that instead ‘immediately’ after he wins in November he will ‘pass a major Stimulus Bill that focuses on hardworking Americans and Small Businesses’.
It’s an odd move weeks before an election to personally halt the progress of a bill designed to help millions of Americans, in such a way that no-one can be blamed but Trump himself. Especially since he is trailing Joe Biden in most nationwide polls.
The Dow Jones immediately panicked, sinking 375 points to fall back below 27,800, having crossed 28,270 earlier in the session.
Yet the European markets have openly fairly calmly this Wednesday. In fact, they’ve barely moved at all. The FTSE added 0.1% as it stuck its nose across 5950, with the DAX flat just above 12900 and the CAC lurking around 4900 effectively unchanged.
The Dow itself, meanwhile, is looking to bounce back this afternoon, aiming to re-cross 28,000 with a 0.8% increase. That might be because, regardless of who wins the election, some form of stimulus should ostensibly be on its way in November.
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