Spreadex Market Update

Stimulus deal rejection and Columbus Day break lead to quiet start for Europe



With the US off for Columbus Day, it might be a pretty quiet start to the week for the European markets.

The big news over the weekend is that Nancy Pelosi has rejected the White House’s improved offer of $1.8 trillion in stimulus – above the $1.6 trillion offered previously, and far beyond the $1 trillion cap Republicans are seeking, but still below the $2.2 trillion package House Democrats passed. Pelosi described the process as ‘one step forward, two steps back’ and that the proposal was insufficient on ‘how we honour our workers, crush the virus and put money in the pockets of workers’.

What is perhaps crucial for the markets, however, is that the Democrats and Treasury Secretary Steven Mnuchin are back at the table, after Trump had halted talks when he returned from hospital last week. The proximity of the election – and the view of Republican senators that the rejected White House offer was already excessive – still means it is perhaps unlikely that a deal will get done any time soon, but it is nevertheless an improvement on what had appeared to be the complete nixing of negotiations.

This led to the most meagre of gains this Monday, with the Eurozone’s DAX and CAC rising 0.2% and 0.1% respectively.

The FTSE, meanwhile, was down 10 or so points, retreating thanks to some Brent Crude-led losses in its oil sector, with BP slipping 1.8% and Shell falling 1.6%. In contrast the FTSE 250 was up 0.6%, despite some dire warnings about Britain’s total jobless total in the run-up to Christmas.

SEARCH FOR AN ARTICLE:

Enter a keyword and search for all relevant articles

MARKET ANALYSIS

RECENT POSTS

Financial Trading Blog

FTSE 100 Under Pressure From Oil Ahead of CPI, Sainsbury's Earnings

Read More

Economic Diary

21.04.26

Read More

Weekly Technical Analysis

Weekly Technical Analysis

Read More

Financial Trading Blog

Nasdaq At Record Highs Ahead of Tesla, Intel Earnings

Read More

Daily Market Update

20.04.26 Monday Morning

The S&P 500 edged lower in thin trading after record highs as investors weighed renewed US-Iran tensions and...

Read More

Economic Diary

20.04.26

Read More

DISCLAIMER


Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.

Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.

No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.

The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.