US News DAX goes higher in the day - investors rely on agreement on US stimulus package

10:40  21 october  2020
10:40  21 october  2020 Source:   finanzen.net

USA: Agreement in principle with Moscow on extension of "New Start"

 USA: Agreement in principle with Moscow on extension of According to its own statements, the USA has made basic agreements with Russia on an extension of the "New Start" agreement on nuclear disarmament. "We are ready to extend the 'New Start' agreement for a certain time," said US negotiator Marshall Billingslea on Tuesday. The prerequisite is that Russia agrees to a limitation or "freezing" of its nuclear arsenal. However, Moscow rejected this as "unacceptable".

Investing .com - European stock markets are seen opening higher Wednesday, helped by increased confidence for a new U . S . stimulus package The White House and Democrats in the U . S . Congress moved closer to agreement on a new coronavirus relief package on Tuesday as President Donald

House Democrats could introduce a smaller stimulus bill next week. “Fiscal stimulus is really all but dead,” declared Sarah Bianchi, macro research analyst at Evercore ISI. Chief Critic. The stalemate in Washington over further economic relief will lead to slower-than-expected economic growth at the end

In the middle of the week, investors access the German stock market.

PHILIPPE HUGUEN/AFP/Getty Images © Provided by Finanz.net PHILIPPE HUGUEN / AFP / Getty Images

The DAX gained 0.22 percent to 12,764.45 points at the start of the session.

Now that, contrary to expectations, negotiations for a US economic stimulus package are being continued, investors on the German stock exchange are cautiously optimistic.

Fed before publication of the "Beige Book"

In the evening (CEST) the US Federal Reserve also publishes its economic report, the so-called Beige Book. Stock marketers expect this to give signals of possible additional cash injections from the Fed. The pressure on the central bank is growing, since politicians in Washington have not yet been able to agree on a much-awaited further stimulus package.

Corona fear causes DAX to crash

 Corona fear causes DAX to crash Corona infections on a daily basis at the highest level For Germany, the Robert Koch Institute (RKI) reported more than 6,600 new infections with the corona virus within one day in the morning. Although the DAX has recently shown itself to be surprisingly robust, according to the market, some observers are now expecting increasing selling pressure on the stock exchanges: "Now at the latest, the first investors should get cold feet.

DAX . Investing .com – U . S . stocks were higher after the close on Tuesday, as gains in the Oil & Gas, Financials and Utilities sectors led shares higher . A lot of americans rely on the stomulus. Disgusting how politicians abuse the negotiations for their own favor.

Investing .com – The Dow rose Tuesday as economy-linked cyclical stocks climbed after House Speaker Nancy Pelosi touted optimism over getting a deal on stimulus , though said differences on key issues remain ahead of today’s deadline.

Possible economic stimulus package in the USA creates tension

In addition to the current corona situation, investors continue to focus on the hoped-for US economic stimulus package. Statements by Nancy Pelosi, the Democratic spokeswoman for the House of Representatives, that the Democrats and the White House had moved closer to a successful conclusion of the negotiations ensured that investors were in a better mood again. Pelosi put the ultimatum for a deal that actually expired on Tuesday into perspective.

The Commerzbank foreign exchange market expert Thu Lan Nguyen, however, dampened expectations: there are still enough critical voices to be heard from the US Senate, especially from the Republicans, who have a majority there and are bothered by the size of the package. "There is still a great risk that the negotiations will fail in the next few days," she said.

Investors are also paying close attention to the other two long-running topics: the virus crisis and the Brexit negotiations. Among other things, the German Software AG and the Swiss food company Nestlé open their books.Redaktion finanzen.net / Reuters / dpa-AFX

Lockdown threatens: DAX crashes below 12,000 points at the start .
The mood on the German stock market remains bad. © Provided by Finanz.net Andrew Burton / Getty Images In view of the worsening Corona crisis, the DAX fell below the 12,000 point mark for the first time since June. With 11,848.31 points, the leading index recorded a discount of 1.78 percent at the start on Wednesday. The US presidential election next week and Brexit are also not to the liking of investors as factors of uncertainty.

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