Today the markets are rejoicing after yet another fiscal stimulus announcement by United States President Joe Biden. Biden unveiled a $600 billion spending bill primarily focused on infrastructure, which was crafted by a bipartisan group in Congress. This means that the bill likely has a chance of making its way through the Senate and becoming a reality.
As a result, today all major US stock indices will continue to extend their gains, fueled by the latest stimulus news. A company to keep an eye on especially is Nike, whose latest quarterly report was overwhelmingly positive, surely setting up the sports attire company for further gains in share value.
Things are a little less rosy and optimistic in Europe. The continent’s summer holiday season is underway, but there are still some legislative challenges. While members of the European Union have agreed on a vaccination passport and quarantine requirements, there is still some doubt over how to handle the United Kingdom.
This is made especially difficult because of the spread of the Delta variant of Covid-19 which came from India to the UK and is now the most common and most contagious form of the coronavirus.
Thus, European companies related to travel, such as tour agencies, airlines, and hotels might still take a hit amid the renewed Covid-19 threat.
As for economic reports, there were consumer confidence indices published today by the UK and Germany. The UK’s June numbers were lower than expected, while Germany’s forward numbers for July were better than the forecast.
Both business and consumer confidence in Italy in June was much better than investors had anticipated.
The most important fundamental reports of the day will come later when the United States publishes its PCE data for May; the Michigan consumer sentiment survey for June is also hotly anticipated.
