Investors Seeing Congress Moving Towards $908 Billion Stimulus Plan In U.S., Brexit Talks In Europe

In Washington, after a bipartisan coalition of Democratic and Republican senators tabled a $908 billion stimulus package that promises to lead to a settlement, likely before the Christmas break, the prospects of an agreement on new budget support have taken a major step forward in the past week.

Democratic House Speaker Nancy Pelosi and Senate Democratic Leader Chuck Schumer, as well as many Republican senators, are endorsing the bill, details of which are due on Monday. Pelosi was upbeat on Friday, telling reporters she had seen a “positive momentum” in favor of a bipartisan deal.

The proposal has also gained support on the Republican side, and Republican Senate leader Mitch McConnell, who had previously proposed a $500 billion minimalist plan, may also participate. McConnell met with Republican senators involved in creating the bipartisan initiative, according to CNBC, and thought that there were encouraging signs of a potential agreement. The political website ‘The Hill’ says, for its part, that Donald Trump would have judged at an event in the Oval Office that a deal would be very close and that he would support the potential ‘deal.’

Investors were wary on Monday following a mixed session in Europe, where talks for a Brexit settlement are frozen as the end of the year draws close, signaling the UK’s final departure from the European Union. Despite a new telephone conversation on Monday between Boris Johnson and Ursula von der Leyen, the terms for concluding a contract are not always fulfilled.

It is now predicted that the British Prime Minister will fly to Brussels to try to secure a deal ahead of Thursday and Friday’s EU summit. Until minimizing its losses at the end of the day, the pound dropped more than 1.5 percent in the session on concerns of a breakdown in trade (-0.45 percent to $1.3381).

The week ahead in Europe will be marked by a meeting of the ECB, whose markets are waiting for more support measures in the face of the second coronavirus wave, which this autumn has slowed down the economic recovery. Investors are waiting for an improvement and expansion of their asset buyback program to be announced.

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