financial markets largely ignored the political turmoil in the United States, which ended with the House of Representatives starting measures to impeach President Trump for the second time, and attention shifted more towards the possibility of launching a stimulus package Male big size early in the mandate of President-elect Joe Biden.
According to the National Bank of Kuwait report, the introduction of vaccines against the Covid-19 virus has also contributed to boosting market sentiment (albeit largely restricted so far to developed countries) With the difference in the situation according to the country), which may limit the economic pressures in the coming months.
Global stocks also continued to make gains with the US Standard & Poor's Index rising 4% during the month and a half ending in mid-January, and record US bond yields rose .
while Brent crude oil prices also benefited from the severe reduction in Saudi supplies and expectations that improved growth rates will contribute to boosting oil demand, as its price reached its highest levels recorded in 11 months at $ 56 a barrel, to wipe out all losses incurred during the pandemic period.
Biden targets early fiscal stimulus
Before the inauguration of Joe Biden as President of the United States on January 20, 2021, and with the Democrats winning the Senate race in Georgia, which gave them complete control over the House and Senate in the US Congress, Attention is shifting to the speed of approval and the size of the fiscal stimulus package needed to support the economy, which is suffering from the repercussions of the virus outbreak.
President Trump signed a fiscal stimulus package worth $ 0.9 trillion (4% of GDP) in late December, which included sending direct checks worth $ 0.9 trillion. $ 600 for Americans, extending unemployment benefits until next March, and channeling $ 325 billion to support small businesses.
However, a $ 1.9 trillion financial package will follow once Biden is installed, including sending an additional $ 1,400 checks to citizens, and an additional extension of unemployment benefits. Helping state and local governments, increasing the minimum wage to $ 15 an hour.
The labor market report issued in December again highlighted its poor performance and the urgency of taking immediate action to address the situation, as non-farm payrolls declined for the first time since April and the unemployment rate remained strong. ...
