The Paris Stock Exchange is expected to rise after Donald Trump’s endorsement of plans to support Congress and refinance the federal budget. The Brexit deal and the start of vaccinations in Europe are also well received.
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Recovery plan in the United States, Brexit and vaccinations, the stock market relieved | Photo credits: Reuters
The Paris Bourse is expected to rise on Monday, relieved by the announcement of the signing by Donald Trump of the Congressional budget support plan intended to contain the effects of the health crisis. The American president also initialed the administration’s financing plan, thus avoiding paralysis for lack of credit. The session promises to be all the more calm as the British markets are closed on Monday for “Boxing Day”.
Donald Trump finally approved, on Sunday, a combined plan of 2.300 billion dollars relating to a tax package to help households and businesses, as well as additional funding from the federal budget, thus avoiding a “shutdown” of the administration , which would have intervened this Monday at midnight. The US president nevertheless reiterated his call to Congress to increase the amount of checks intended for Americans from 600 to 2,000 dollars. Its procrastination has nevertheless already had the effect of temporarily depriving some 14 million Americans of their unemployment coverage.
A support plan integrated into the lessons
The Asian markets were well oriented this morning, with the exception of Hong Kong, weighed down by the new fall of more than 8% of Alibaba after the Chinese authorities had accused its subsidiary Ant Group of abuse of a dominant position. The contracts futures on American indices, for their part, erased their initial losses. The lifting of the mortgage on the recovery plan and risk of paralysis of the federal administrations ” is positive for the markets “, Welcomes Masahiro Ichikawa, chief strategist at Sumitomo Mistui DS Asset Management, but,” on another side, this support plan has driven the market for quite some time and i would say it was largely integrated “, He nuances.
The trade agreement reached on December 24 between London and Brussels, which has yet to be ratified by the British and European Parliaments, and the start of the vaccination campaign in Europe give hope for the start of economic normalization in 2021. But fears remain on the variant of the highly infectious coronavirus which appeared in the south-east of England and identified in several European countries, in Japan and in Canada during the weekend.
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