Summary for the 20th of August -News of stimulus lifts the stock markets

News about Germany readying a fiscal policy plan to counter a possible economic downturn had gotten a lot of attention yesterday. German finance minister, Olaf Scholz said on Sunday that the government could come up with 50 billion euros in stimulus to prevent an economic crisis. The stimulus would target strengthening public spending, and the goal of the stimulus would be to keep the unemployment from rising.

The US had given Huawei another 90 days with set of exceptions that protected the US customers from ban on doing business with Huawei. The Secretary of Commerce, Wilbur Ross said that US companies doing business with Huawei needed more time to find new solutions. The next deadline would be 19th of November. Also, additional 46 subsidiaries of Huawei were added to the ban list.

Trump’s economic adviser, Larry Kudlow, stated on the past weekend interview that there was no recession in sight. The chief of the Federal Reserve Bank of Boston, Eric S. Rosengren, also had similar statement when he downplayed the fears of a recession. He didn’t believe that a weaker global trade and the economic growth from other countries would have a significant effect on the US economy. He believed the strong consumer spending in the US would help sustaining the US’s economic growth.

Indices for 20th of August
Dow: +1.0% (19th of August)
S&P 500: +1.2% (19th of August)
Nasdaq: +1.4% (19th of August)
Nikkei: +0.5%  (20th of August)
Chinese indices: +0.5% (20th of August)
STOXX Europe 600 Index: -0.68% (20th of August)

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