Major US stock index futures raced higher during the first trading hours of the week as President Donald Trump signed the relief bill along with the spending bill. Trump unleashed $900 billion, which would support US citizens and businesses to offset the impact of Covid19. On a side note, Congress will negotiate to raise the direct payments from $600 to $2000 as per Trump's instructions. The Dow Jones Industrial Average futures rose to 30268, the S&P500 futures rallied to 3718, and Nasdaq futures jumped to 12784.
The dollar index, which measures the greenback against a basket of major currencies, drifted lower to 90.08, weighed down by the fiscal stimulus package and Brexit deal. Finally, President Trump signed the Covid19 relief bill and government spending bill after delaying for a while. Despite the delay, the signing boosted risk sentiment driving capital to riskier asset classes. On the other hand, the Brexit trade deal has driven investors towards the British pound and the Euro. The EURUSD rallied to $1.2227, and the GBPUSD inched higher to $1.3576.
Precious metals prices inched higher as the dollar weakened following Trump's approval of the fiscal stimulus package. The price of a gold ounce edged higher to $1900, the price of a silver ounce advanced to $26.77, and palladium futures hovered near $2350.
Oil prices remained under pressure, uninterested in the US fiscal stimulus package. The soaring coronavirus cases globally, especially with the new strain, added to investors' woes. Several governments adopted stricter lockdown measures to the end of the year to control the recent spread. As a result, oil demand levels could drop again, which could likely cause another market imbalance. The West Texas Intermediate crude February delivery tumbled to $47.74, and the Brent Blend February delivery eased to $50.83.
Major Economic Events
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