Stock Markets Surge on U.S. Agreement: Live Updates - The New York Times

Here’s what you need to know:

• Stimulus agreement includes money for distressed businesses.
• Global financial markets rally on stimulus.
• Shares of companies likely to get help from the government rallied.
• U.S. companies aim for business as usual in China by late April.

Mitch McConnell, the Senate majority leader, in Washington on Tuesday.Credit...Anna Moneymaker/The New York Times

Stimulus agreement includes money for distressed businesses.

Senators and Trump administration officials reached an agreement early Wednesday on a roughly $2 trillion stimulus measure that would send direct payments and jobless benefits to individuals, as well as money to states and businesses devastated by the coronavirus pandemic.

The legislation, which is expected to be enacted within days, aims to deliver critical financial support to businesses forced to shut their doors and relief to American families and hospitals.

The deal, struck shortly before 1 a.m., was the product of a marathon set of negotiations among Senate Republicans, Democrats and President Trump’s team that nearly fell apart as Democrats insisted upon stronger worker protections and oversight over a new $500 billion fund to bail out distressed businesses.

“We have a deal,” Eric Ueland, the White House legislative affairs director told reporters just before 1 a.m., adding that the text of the bill still needed to be completed. “We have either clear, explicit legislative text reflecting all parties or we know exactly where we’re going to land on legislative text as we continue to finish.”

Global financial markets rally on stimulus.

Markets across Asia and Europe were buoyant on Wednesday, as investors cheered a $2 trillion coronavirus stimulus package to shore up the American economy.

The positive mood looked likely to carry over onto Wall Street, as trading in futures indicated a strong opening for stocks there as well.

Major exchanges in Europe soared at the opening bell. France’s CAC 40 rose 2.2 percent, Germany’s Dax rallied 2.4 percent and in London the FTSE 100 climbed 2.6 percent.

In the Asia-Pacific region, markets finished the day on fresh weekly highs. Japan’s Nikkei 225 jumped by more than 8 percent, even as the organizers of the Tokyo 2020 Olympic Games said they would postpone the event by a year. Chinese stocks rallied, with Shanghai’s SE Composite finishing the day 2.1 percent higher and Shenzhen stocks rising by more than 3 percent. Hong Kong’s Hang Seng climbed 3.8 percent and South Korea’s Kospi gained 5.9 percent.

Australia’s ASX 200 rose by 5.5 percent.

Markets have been volatile in recent weeks, seesawing on sentiment that has veered between hope that governments around the world will take strong measures to stem economic losses from the spread of the coronavirus, and fear that policymakers are not making bold enough decisions.

Senators and the Trump administration reached a deal early Wednesday on a huge stimulus bill that would help to provide a ballast for companies and industries hardest hit by the outbreak. It would also give money to Americans, many of whom have lost their jobs in recent days and weeks.

Elsewhere, governments have taken more concrete measures. On Monday, Germany prepared an emergency budget and rescue fund for companies and state-supported loans. European Union leaders are working on additional new measures to help loosen up money for some countries to help soften the economic blow of the virus.

On Monday, Wall Street had its best day since 2008, as investors anticipated a big stimulus to be passed by Congress.

“Today’s sharp equity rally shows that the combination of central banks’ entire Global Financial Crisis playbook and substantial, direct fiscal support can be well-received by markets,” said Paul Haefele, chief investment officer at UBS Global Wealth Management, in a note to investors about Tuesday’s performance on Wall Street.

“Encouragingly, recent new lows in stocks have been accompanied by either sideways or even lower volatility, indicating markets are starting to become more comfortable with the potential range of outcomes we face,” Mr. Haefele added.

The price of oil also jumped after a period of steep declines. The international benchmark, Brent crude, and the United States standard, West Texas Intermediate, both gained more than 3 percent.

Shares of companies likely to get help from the government rallied.

Stocks in the United States soared on Tuesday on expectations that Congress was close to producing a stimulus bill to stabilize America’s faltering economy and offer lifelines to industries on the brink of collapse because of the coronavirus.

A plan to bail out companies and send checks of up to $1,200 to Americans had been stalled since Sunday over objections by Democrats. But on Tuesday, top Democrats and Trump administration officials said they were optimistic about finalizing an agreement on a roughly $2 trillion plan.

The S&P 500 had its biggest daily gain since 2008, rising more than 9 percent. Stocks in Europe climbed, led by Germany, where stocks rose more than 10 percent. Those gains followed a similar performance in Asia, where major markets around the region posted increases that ranked among their biggest gains in weeks.

The jump on Tuesday was in part a rebound from a difficult stretch for stock investors. On Monday, the S&P 500 fell about 3 percent as Congress struggled to overcome differences on the aid bill and traders remained cautious about the Federal Reserve’s ability to cushion the economy’s fall. Stocks are down almost 30 percent since their peak in February.

U.S. companies aim for business as usual in China by late April.

Dozens of American companies expect to resume normal operations in China by the end of April and keep their investment plans, a survey by the American Chamber of Commerce found.

While the pandemic has continued to cripple economies around the world, the Chinese authorities have started to revive production and ease their lockdown on Hubei province, where the coronavirus first appeared. Last Thursday, China reported no new local infections for the first time since the outbreak began three months ago.

After surveying nearly 120 firms, the chamber’s China branch said on Wednesday some companies also planned to maintain investments they had previously set in motion, even as half the firms reported significant drops in revenue and others were pessimistic about economic growth amid the pandemic.

The timeline echoes predictions made by Zhong Nanshan, a respiratory disease expert in China, who has said the outbreak could be brought under control within the country by late April.

But reports have claimed that health officials in Wuhan, Hubei’s provincial capital, are not publicizing the number of people with asymptomatic infections, raising fears that the virus is still silently spreading. Cases are also climbing among people arriving in the country from abroad, threatening to start a second wave of infections.

Reporting was contributed by Alexandra Stevenson, Elaine Yu, Daniel Victor and Carlos Tejada.

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https://www.nytimes.com/2020/03/25/business/stock-market-today-coronavirus.html

2020-03-25 09:01:12Z
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