This week has been characterized by two extremely important bits of news. One, the US Dollar and the World Stock markets have been on a high for the last two weeks. And two, the Americans have raised themselves on the expectations of another Stimulus bill with Donald Trump getting discharged from the hospital. The first bit of news is quite surprising, as Europe did not see a very good start with London’s .FTSE. .FCHI of France, .FTMIB of Italy, and .GDAXI of Germany too didn’t see a lot of traction despite a remarkable leap in the German industrial demands.
How did the discharge of Donald Trump Affect the US Dollar?
Most of the Asians along with Wall Street started rallying overnight after Trump was discharged from the Walter Reed Medical Centre Military Hospital situated just outside Washington. And his release actually helped ease a lot of nerves which were afraid of a possible eruption in the Presidential elections about to take place next month. The US Dollar was suffering along with Gold, and bonds. Although there was a moderately improved appetite for risk, the futures of Wall Street did slip further into the red, with oil losing the momentum it had gathered overnight.
Kit Juckes of the Societe Generale stated that the market just didn’t have that edge anymore. The market didn’t actually get anything worth making sense out of it with the discharge of Donald Trump from the hospital- but it definitely was spending its time- waiting for what came next. This comes into news after Trump reportedly got discharged from his hospital after a brief stay of three days to work on the new stimulus bill. While he claimed that he was feeling good, one of his many doctors advised him to not stress about- as he still wasn’t out of the woods just yet.
MSCI shared its broadest index of the Pacific-Asia shares which saw a 0.7% rise- a two and a half-week high. .HSI of Hong Kong climbed close to 0.8% along with .N225 of Japan adding in another 0.5%. China, on the other hand, kept its market closed.
The Release of Donald Trump, and the Ongoing Hopes for a Stimulus Deal
The hopes of a new stimulus bill are still bubbling in the back, as Nancy Pelosi and Steven Mnuchin are doing their best to get a deal underway. They spoke on the phone for close to an hour on Monday, and they are preparing to do the same the next day too- in order to finally chance upon a resolution. Tai Hui, the Chief Asia Market Strategist of the J.P. Morgan Asset Management, stated that if the stimulus bill saw the light of the day, it was extremely plausible that the world markets would see it in quite a positive light. This means that the US Dollar would again improve.
A stimulus deal is proving to be an extremely important part of the entire pandemic saga, as it can be the only thing that saves the degrading American economy, and the famed US Dollar.