Global market stocks increased on October 19 after House Speaker Nancy Pelosi announced a 48-hour deadline for Congress to come up with a deal on the upcoming coronavirus stimulus package.
Global Market Shows Amazing Improvement
The future of the United States' economy rose after Pelosi said in an interview on ABC's "This Week" that she was optimistic over stimulus negotiations.
The Democrat House Speaker said that there were disagreements over the language that was used in the bill. However, both the Democrats and Republicans have made progress.
Futures on S&P 500, Dow Jones, and Nasdaq increased between 0.3% and 0.7%. The shares in Asia advanced after China reported a 4.9% expansion in its third-quarter gross domestic product. Shanghai Composite index, China's benchmark, retreated 0.7% since the GDP data fell short of the 5.5% expansion analysts had estimated.
According to the chief economist at ING, Iris Pang, the numbers in China grew due to the contributions from within the economy, even though the export market did not recover immediately.
But the overall data showed a boost to the stock market. Chinese retail sales increased by 3.3% year-on-year in September, from only 0.5% in August; this shows that more and more people are spending their money on businesses. Asia Pacific's broadest MSCI index located outside Japan increased by 0.2%
In Asia, Japan's Nikkei increased by 1.1%, and Hang Seng of Hong Kong increased by 0.4% at the close.
Pelosi is Optimistic for Another Stimulus Package
On October 18, House Speaker Nancy Pelosi stated the difference between the Democrats and Republicans regarding the coronavirus relief package. However, regardless she is still optimistic that both sides will come together and pass a new package before Election Day.
Pelosi stated that she wanted a bill passed before November 3, which is the presidential election day. She also stated that she wanted both Democrats and Republicans to come to an agreement within 48 hours, according to Fox Business.
However, her negotiating partner, Treasury Secretary Steven Mnuchin, is still in the Middle East and will likely return on October 21, making the deadline almost impossible. President Trump admitted that he wants a bigger coronavirus relief package budget, but not all Republicans agree with him.
The White House proposed a $1.8 trillion stimulus deal last week to help all taxpaying Americans who are struggling with the financial effects of the pandemic. Pelosi rejected the offer and said it fell short in important areas such as tax credits for low-income houses, aid to state and local governments, rent help, and worker protections. She wanted a $2.2 trillion aid, in order to meet all important areas.
The Republicans who control the Senate are against the $2.2 trillion aid. Senate Majority Leader Mitch McConnell said that the Senate would vote on October 21 on a $500 billion proposal. Democrats rejected the "skinny bills" that McConnell wanted, as so much more is needed.
Senator Chris Coons told CNN that they wanted to see what McConnell has to offer, but Democrats have worked on the deal for months, and they won't back down and allow a budget smaller than $2 trillion. Coons added that McConnell had not been part of the negotiations.