{"id":173793,"date":"2020-07-17T07:55:52","date_gmt":"2020-07-17T11:55:52","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=173793"},"modified":"2020-07-17T07:48:29","modified_gmt":"2020-07-17T11:48:29","slug":"stocks-trillion-reason-to-climb","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/07\/stocks-trillion-reason-to-climb\/","title":{"rendered":"Stocks: $Trillion Reason to Climb"},"content":{"rendered":"
July 17, 2020<\/div>
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By Han Tan, Market Analyst, ForexTime<\/a><\/strong><\/p>\n

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Risk appetite is recovering slightly after what has been a relatively choppy trading week. Most Asian benchmark stock indices are pushing higher, paring Thursday\u2019s losses, with European and US equity futures in the green as well. Oil prices are persevering above the $40 line, while Gold has moderated just below the psychological $1800 level.<\/p>\n

This week\u2019s market performance suggests, yet again, that investors have serious misgivings about adding significantly to equities\u2019 Q2 gains. Suspicions over the stock bulls\u2019 outlook could be gaining critical mass. The fact that the S&P 500 has now been rejected twice around similar levels where it began the year, indicates that US stocks need fresh reasons to add to its 47.3\u00a0percent surge since its March trough.<\/p>\n

Year-to-date parity could be as good as it gets for the time being, until fresh tailwinds arrive.<\/p>\n

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With Wall Street banks stockpiling $35 billion last quarter for loan-loss provisions, US weekly jobless claims remaining stubbornly high, and major corporations having warned that tens of thousands of employees could be laid off later this year, perhaps equity bulls are finally taking stock of the potential slip-ups in the US economy\u2019s recovery.<\/p>\n

Yet, salvation could be just around the bend.<\/p>\n

Further fiscal stimulus could give the bull market fresh legs, with equities having already priced in the unprecedented monetary policy support. EU leaders are meeting in Brussels today to hold two days of talks over the proposed EUR750 billion recovery fund. A growing consensus at the negotiating table could spur more risk-taking activities over the near-term. Investors are also monitoring what else US Congress has to offer to support the world\u2019s largest economy, with the opening bid for the next stimulus package potentially being tabled as soon as next week. The next round of US fiscal stimulus is estimated to be around $1 trillion.<\/p>\n

Should fiscal policymakers disappoint, and deny stock bulls the boost they desire, we could see the rapid erosion of stock markets\u2019 gains from recent months.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n<\/div>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Han Tan, Market Analyst, ForexTime Risk appetite is recovering slightly after what has been a relatively choppy trading week. Most Asian benchmark stock indices are pushing higher, paring Thursday\u2019s losses, with European and US equity futures in the green as well. Oil prices are persevering above the $40 line, while Gold has moderated just […]<\/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-173793","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173793","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=173793"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173793\/revisions"}],"predecessor-version":[{"id":173802,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173793\/revisions\/173802"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=173793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=173793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=173793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}