© Reuters. By Geoffrey Smith
Investing.com: Europe closes deal on its $ 860 billion recovery package, while US politicians try to bridge a huge gap between their positions in the fifth stimulus package since the pandemic erupted. Stocks are expected to surge in Monday’s lush tech rally, while Texas Instruments (NASDAQ 🙂 earnings, Lockheed Martin (NYSE :), Coca-Cola (NYSE 🙂 and others are due. Jeff Bezos is $ 13 billion richer after the rise in Amazon (NASDAQ 🙂 on Monday, despite Prime Day being delayed, and oil prices peaking at four months in general optimism. Here’s what you need to know in the financial markets on Tuesday, July 21.
1. The historical agreement of Europe
The member states of the European Union finally agreed to a landmark agreement that will create a recovery fund of 750 billion euros ($ 860 billion) for the bloc.
The fund will be financed with loans from the EU itself, and more than half, 390 billion euros in total, will be disbursed in the form of grants instead of loans. As such, it puts the firepower of the German, Dutch and French taxpayers more solidly behind the credit of Italy, Greece, Spain and Portugal.
Sovereign bonds and bank stocks across the southern periphery of Europe performed better in the news, but were unchanged against the dollar as it peaked at four months in anticipation of the news last week.
2. Republicans, Democrats ready to launch stimulus package
US policymakers will meet again to discuss the details of what will be the fifth US stimulus package since the coronavirus attack.
Various reports suggest that the Republican and Democratic parties remain far from each other’s position, but the fact that each controls a House of Congress means that a compromise will have to be found.
President Donald Trump said over the weekend that he still wants a payroll tax cut to be part of the package, while Treasury Secretary Steven Mnuchin said Monday that the measures would be worth around $ 1 trillion and would focus on ” children and jobs and vaccines. “
He also said the administration wants to offer tax incentives to companies to rehire people and money for states that reopen schools. House Democrats are pushing for more explicit support for states and cities, on the contrary.
3. Shares to open higher after technology merger
US stock markets are expected to reopen higher, extending gains on Monday in the wake of increased hope that one or more vaccine cures for the Covid-19 virus will be available by the end of the year.
At 6:30 AM ET (1030 GMT), the contract was up 177 points or 0.7%, while the contract was up 0.7% and the contract was up 0.8%
Actions that are likely to be in focus will include, and, all of which report before opening as well as those that report after closing.
4. Bezos earns another $ 13 billion
The net worth of Amazon founder and CEO (NASDAQ 🙂 Jeff Bezos rose by $ 13 billion on Monday, in the latest sign of tech stock valuations nullifying the reality of an economy in the middle, its biggest contraction since the Second World War.
Amazon shares were up 7.9% on Monday, thanks to big updates from Wall Street analysts including Goldman Sachs (NYSE 🙂 and Jefferies (NYSE :). However, the company said in an email to suppliers that it is delaying its first annual day, apparently due to the pandemic.
After Monday’s closing bell, IBM (NYSE 🙂 had joined the seemingly unstoppable tech party, its shares surged more than 5% in trading after hours after it reported a 5.4% drop in revenue and a nearly 50% drop in earnings to share for the second quarter. Those figures were marginally better than analysts’ expectations. Cloud computing revenue increased 30% on the year, IBM celebrated.
5. Crude oil reaches a maximum of four months; API observed
Crude oil prices reached their highest level since the beginning of March as part of a widespread recovery in risk assets after the agreement with the EU.
At 6:30 am, futures were up 2.5% $ 41.95 per barrel, having previously reached an intraday high of $ 42.02, while the international benchmark index rose 2.6% to $ 44.41 per barrel.
At 4:30 p.m., the American Petroleum Institute will publish its latest weekly calculation for the United States. Analysts expect official government data, due Wednesday, to show a new 1.95 million barrel extraction from crude inventories, after last week’s gigantic 7.5 million barrel extraction.
