• Republicans roll Out $1 Trillion Senate stimulus plan
• FED extends Lending Programs to end of 2020
European indices finished today's session in mixed moods as investors remain concerned about the rising number of new COVID-19 cases. Recently several European countries have been forced to re-impose restrictions to combat the spread of the virus. Meantime, the ECB extended a recommendation to euro zone banks not to pay dividends until the end of the year, while also allowing them to eat into their capital and liquidity buffers for even longer to support them from the coronavirus economic fallout. Dax finished today’s session flat, CAC40 lost 0.2% , while FTSE 100 rose 0.4%.
US indices are trading lower after another set of mixed quarterly results. McDonalds and 3M posted weaker than expected quarterly results due to lower demand, while drugmaker Pfizer earnings surprised figures positively. Also ever increasing number of COVID-19 cases and uncertainties regarding further stimulus package weighed on market sentiment. Today Senate Republicans unveiled their $1 trillion coronavirus aid package, however it met with a critical response from both Democrats and Republicans. Senate Republicans would like to lower weekly supplemental unemployment benefits from $ 600 to $ 200 through September. The current $ 600 payments expire on Friday.
Oil prices fell during a volatile session on Tuesday, as investors worry that surging number of new COVID -19 cases will hurt the demand outlook for oil. On the supply side, OPEC + will reduce output cuts from next week. Traders also await API report which will released later in the day. During today's session WTI futures fell more than 1% to $ 41 a barrel while Brent crude dropped 0.5% to trade around $ 43.2 a barrel.
Tomorrow investors will focus on the FOMC Interest Rate Decision and FED Chair Powell press conference, where analysts expect the central bank to lay down the groundwork for more action later this year. Also investors will get to know US Pending Home Sales data and EIA Crude Oil Inventories report. On the earnings front, PayPal Inc, Rio Tinto Ltd., Boeing Co.,General Electric Co., Spotify, Barclays plc will publish their quarterly results.
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