TRUMP DERAILS ‘SANTA’ RALLY; BREXIT DEAL HOPES PROP UP POUND

World stocks ticked up on Wednesday, as a last-minute intervention by President Donald Trump dampened positive sentiment over a US stimulus deal, while the pound rose on the possibility of a Brexit agreement, Carolyn Cohn reported for Reuters.

European stocks also got a lift from the Brexit deal hopes, rising 0.35%, though Britain’s internationally-focused FTSE 100 index was down 0.15%. Oil prices dropped after an industry report showed an unexpected rise in US crude oil inventories.

In a video posted on Twitter, Trump said a stimulus bill, agreed after months of wrangling in Congress, was “a disgrace” and that he wanted to increase “ridiculously low” $600 checks for individuals to $2,000.

“Trump has derailed US fiscal hopes, refusing to sign the $900 billion pandemic relief bill that was passed after a long-drawn stalemate between Democrats and Republicans,” analysts at Mizuho wrote in a note to clients.

“And so, hopes for an unambiguous “Santa rally” have been tragically hijacked.”

Some traders said Trump’s push for higher stimulus could lead to a spending increase.

The bill could be amended if the congressional leadership wants to do so, and if they don’t, Trump’s choices are to sign the bill into law, veto it, or do nothing and let it become law.

The stimulus funds are needed as the US recovery stalls and hospitals struggle to cope with a nationwide spike in coronavirus infections at the same time as an even more contagious variant of the disease spreads quickly in Britain.

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