Hong Kong: After the rally the previous day, nervous investors struggled on Wednesday. US lawmakers have still failed to formulate a key new stimulus package. The White House and China have also agreed to review their acclaimed trade agreement.
The long-term uncertainty caused by the coronavirus and the weak US dollar on the global economic outlook has pushed gold to a new record after breaking the US$2,000 mark for the first time, and Europe is preparing for the second wave of infections.
Millions of Americans have received major unemployment benefits and bans on evictions, and Republicans and Democrats are far apart in negotiations on a new economic rescue package.
House leader Nancy Pelosi warned that Democrats will not deviate from their $3 trillion plan, which includes extending the $600 weekly supplementary benefits. The $1 trillion proposal put forward by Republicans cut this allocation to $200.
“Failure to agree to another round of stimulus would hit the US economy hard at a time when high-frequency data suggests it is losing some momentum,” said National Australia Bank’s Tapas Strickland.
However, although the two parties do not seem to be able to reach an agreement that is vital to preventing the financial crisis, it is expected that they will eventually hold a meeting in the middle of the election with three months away.
After the two sides said they would hold talks next Saturday to review the trade agreement they signed with fanfare in January, the specter of persistent Sino-US tensions came into play again.
Due to issues such as Hong Kong, the coronavirus and the recent TikTok, the relationship between the two has become increasingly sharp, and people are worried about the agreement, which ended the protracted and painful trade war.