Asian Markets Rising With Impending US Stimulus Package
I have just read an article on MSN on the AFP news feed saying that Asian markets are on the rise with the news that the US will be signing off on a new stimulus package that will hopefully assist the US economy survive the COVID virus as they could be about to enter a second wave given the Northern Hemisphere is about to experience winter.
Apparently the White House has increased the value of the deal and the story is saying the Republicans are eager for a deal to be done.
It appeared that Trump has increased the stimulus package by $US1.8 Trillion last Friday and the story is saying that he favours an even larger deal.
This could be an election stunt for Trump to remain in the White House but the US may need a package such as this to survive the second wave.
The democrats are actually looking for a $2.2trillion package. Trump is talking about raising the size of the package to $1.8trillion from the White house proposal of $500billion much to the dismay of some republicans. It’s a tricky maneuver that can affect his campaign.
How does a stimulus to the American Economy be a boon to Asian markets?
Because the stimulus shows that the economy is terribly bad to extent that government have to support her citizens for their daily living. It will definitely make Asians stocks to rise.
Not surprised because the Americans will have to rely on the Asian market for survival
The US love all the latest tech and gadgets and where do you think they are all made!!
It’s good world economy as a whole, and definitely currency and stock markets will respond in a way to such news.
Stimulus will affect monetary value . That government will order for trillions of their currency to be minted to support the economy.,this causes inflation.
USA stimulus parkage will be agood for the general global markets including Asia market.when demand in USA increases, demand for imports increase ,and automatically will lead to an increase in price for Yen and Australia dollar currencies.