Futures on the benchmark US stock indexes are developing a steady rally. The US dollar was hurt by upbeat China’s GDP for the third quarter, strong gains in industrial output, and expansion in retail sales. The Canadian dollar is expected to assert strength.
Futures on the US key stock indexes are rallying steadily today amid the growing likelihood that the US lawmakers will settle the stimulus bill before the presidential election slated for November 3.
Futures on the Dow Jones were 0.64% up in the early New York trade. Futures on the Nasdaq jumped 0.96% whereas futures on the S&P 500 rose 0.75%.
Investors are keeping close tabs on the upcoming presidential election in the US. Market participants are poised to believe in Joe Biden’s victory. If the prediction comes true, Congress is likely to approve a wider stimulus package to support the limping domestic economy.
Besides, investors cheered the words by House Speaker Nancy Pelosi. She said that the bill on a fiscal stimulus package could be reached ahead of the upcoming US election.
Trade-exposed currencies held firm on Monday while the US dollar lost some steam. Today data showed that China’s economic rebound from the pandemic accelerated in the third quarter. The US dollar index shed 0.48% to trade at 93.231. The greenback dipped, although it is still holding at the upper border of the trading range where it has been stuck lately. The US currency still finds support from rampant coronavirus rates, uncertainty around the US presidential election, and faint hope for the stimulus bill before the election.
In the early American trade, the Canadian dollar is trading lower at 1.3163 against its American rival. Analysts say that the loonie is set to break the level of 1.3097 and strengthen even to 1.3050.
This week began on the optimistic note. Nevertheless, it is still unclear what exactly is feeding this positive sentiment. The focal point for analysts is the talks on stimulus measures which have been underway for long with zero progress. Nothing changed over the weekend.
Importantly, market participants are betting on the soonest approval of the financial aid. That is why they find optimism in the fact that the talks are still going on, though there was a threat of failure a few weeks ago and the outcome is still uncertain.
Market participants await corporate reports from such top American companies as IBM, Netflix, Verizon, and AT&T with the focus on Tesla’s financial records. So, analysts warn that the fake optimism is propelling a rally in the US equity market. Meanwhile, there are no reasons to disrupt the elevated mood today. Having gained 1% in the early New York trade, the US stocks could speed up their advance tonight.
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