Markets Rise As Investors Eye US Stimulus Talks, Gold Hits Record

Asian markets tracked another record on Wall Street Wednesday as traders monitored talks on a key US stimulus package, though they remain on edge as Washington and Beijing plan a review of their much-vaunted trade deal

Hong Kong, (UrduPoint / Pakistan Point News - 5th Aug, 2020 ) :Asian markets tracked another record on Wall Street Wednesday as traders monitored talks on a key US stimulus package, though they remain on edge as Washington and Beijing plan a review of their much-vaunted trade deal.

Still, long-running uncertainty about the global economic outlook caused by the coronavirus pandemic and a weak Dollar helped push gold to new records after breaking the $2,000 barrier for the first time, while Europe braces for a second wave of infections.

With key unemployment benefits and a ban on evictions already lapsed for millions of Americans, Republicans and Democrats remain far apart in talks on a fresh economic rescue package.

House Speaker Nancy Pelosi has warned the Democrats will not budge from their $3 trillion plan, which includes an extension of a $600-a-week supplementary benefit.

The Republicans' $1 trillion proposal sees that handout slashed to $200.

There are worries that failure to reach a deal will deliver a hefty blow to the already stuttering economy.

However, while the two parties appear unable for now to come together on a deal crucial to prevent a financial meltdown, there is an expectation that with an election three months away, they will eventually meet somewhere in the middle.

"The political wrangling has been going on for over one week,but dealers are still a little optimistic that an agreement will be reached," said David Madden at CMC Markets.

"It was reported that talks have been productive, so that has been keeping the bulls engaged."