{"id":172596,"date":"2020-06-23T10:50:46","date_gmt":"2020-06-23T14:50:46","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=172596"},"modified":"2020-06-23T10:33:20","modified_gmt":"2020-06-23T14:33:20","slug":"equities-rally-on-kudlow-comments","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/06\/equities-rally-on-kudlow-comments\/","title":{"rendered":"Equities Rally On Kudlow Comments"},"content":{"rendered":"
June 23, 2020<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

The US equities market rebounded firmly on Monday and shook off the losses suffered on Friday as sentiment soured into the end of the week.<\/p>\n

Late last week, US tech giant Apple announced its plans to temporarily close 11 of its sites across four US states. This was in response to the recent rise in COVID-19 cases in the states in question. The news saw equities being heavily sold on Friday.<\/p>\n

Risk sentiment had already been diluted across the week due to the increase in cases, prompting concerns that the US is on the verge of a second outbreak of the virus.<\/p>\n

Kudlow Downplays \u201cSecond Wave\u201d Concerns<\/strong><\/h2>\n

However, White House economic adviser Larry Kudlow was quick to dismiss the idea of a second wave. Speaking with CNBC on Monday, Kudlow said:<\/p>\n

\u201cThere is no second wave coming. It\u2019s just hot spots. They send in CDC teams, we\u2019ve got the testing procedures, we\u2019ve got the diagnostics, we\u2019ve got the PPE. And so I really think it\u2019s a pretty good situation. Actually, I think nationwide the positivity rate is still quite low, well under 10%.\u201d<\/p><\/blockquote>\n

Kudlow\u2019s comments echo those made by Donald Trump in recent days. Trump has explained the spike in cases as merely being the function of a significant increase in testing. He claimed that if testing was reduced, the number of new cases confirmed would be also.<\/p>

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Certain parts of the US have recorded a steady increase in cases over recent weeks amidst the ongoing reopening. This has fuelled fears that the virus is undergoing a second-wave. However, some experts have suggested that the data reflects an incomplete first wave in some areas, rather than a fresh outbreak.<\/p>\n

Despite attempts by those in the US administration to downplay the data, the World Health Organisation has been clear in its warnings.<\/p>\n

The WHO says the virus is now entering a \u201cnew and dangerous phase\u201d with outbreaks in parts of the world previously untouched and fresh outbreaks occurring in areas where lockdown measures have been eased.<\/p>\n

Further Fiscal Stimulus \u201cHighly Likely\u201d<\/strong><\/h2>\n

Ludlow\u2019s comments were broadly risk-positive. Equities went on to end the day firmly in the green as Kudlow opined that a\u00a0further fiscal package from the government is \u201chighly likely\u201d.<\/a><\/p>\n

Responding to questions about the possible contents of such a package, Kudlow stated:<\/p>\n

\u201cThings the president has talked about publicly. He has talked about a payroll tax holiday for the workforce, he\u2019s occasionally talked about capital gains tax relief. He wants to help out with some form of tax relief. Restaurants, entertainment, athletic contests, things of that sort. We want to help out the tourism business, which has been hurt very badly. We also want to reward people who are reemploying, who are going back to work.\u201d<\/p><\/blockquote>\n

S&P Fighting to Regain Bullish Momentum<\/strong><\/h2>\n

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Following the failure at the 3220.75 level and the break back under the bullish trend-line from year to date lows, the SPX500 has retested the underside of the broken trend line. This is holding as resistance for now.<\/p>\n

Supported by a more recent bullish trend line, price is holding above the 3029.50 support for now, keeping focus on further upside. A break 3112.75 will open up a retest of the broken bullish trend line and higher resistance at the 3220.75 level.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex The US equities market rebounded firmly on Monday and shook off the losses suffered on Friday as sentiment soured into the end of the week. Late last week, US tech giant Apple announced its plans to temporarily close 11 of its sites across four US states. This was in response to the recent […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-172596","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/172596","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=172596"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/172596\/revisions"}],"predecessor-version":[{"id":172611,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/172596\/revisions\/172611"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=172596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=172596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=172596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}