Today, investors’ focus remains on the policy-making efforts of various countries as they wrestle with the coronavirus pandemic and its negative effects on the economy.
Although in the past weeks the fundamental reports on the economic calendar seem to have faded in importance in favor of Covid-19 news coverage, today we expect an unemployment report from the United States. This release is crucial, as it will indicate how labor in the United States has been affected by the pandemic.
Meanwhile, the legislation for another massive stimulus package to help support the newly unemployed, as well as the businesses closing down due to the quarantine, is moving along in the United States. The bill was unanimously approved by the Senate and is now heading for a vote in the House of Representatives scheduled for tomorrow. Because Democrat Senators supported the bill, House Democrats are also most likely going to agree to it, despite a few early criticisms.
Things are progressing less smoothly in Europe, as the leaders of EU countries are divided over the measures most appropriate for managing the crisis. Italy and Spain, which are affected the most by the virus, as well as France, have all called for shared bonds, which countries with a stricter attitude towards debt such as Germany and the Netherlands have ruled out.
Nevertheless, today the financial markets seem somewhat out of steam. Even though various stimulus packages have been announced around the globe, the pandemic is still the dominant factor, casting a large shadow. Today stock indices all over the world are in the red once more.
