United States stock markets on Tuesday started crawling out of the massive hole dug by the previous session's historic selloff, as investors focused on the prospects of a possible breakthrough in the Saudi Arabia-initiated oil price war, and possible stimulus measures from Washington for the US economy.
On Monday, the Dow shed more than 2,000 points and the S&P suffered its worst day since December 2008 after a standoff between Russia and Saudi Arabia caused crude oil prices to sink. Saudi Arabia threatened to boost production after Russia rejected of an OPEC proposal to cut back on global oil production by as much as 1.5 million barrels a day. The nascent oil price war only served to exacerbate fears about the coronavirus outbreak damaging the global economy.
Stock market investors appeared to take heart after US President Donald Trump on Monday said the White House is exploring "very substantial relief" in the form of tax incentives to offset the negative impacts of coronavirus.
The president met with Republican members of Congress on Tuesday to discuss measures. Among the ideas floated was reduction in the payroll tax to zero or indefinitely. Slashing the payroll tax would effectively take less money out of workers' paycheques, helping them absorb coronavirus work disruptions and giving them more money to spend and grow the economy. It also helps businesses.
CURRENCY NEWS: The dollar index was 1.7% higher against a basket of currency trading partners.
COMMODITY NEWS: crude oil prices rebounded on Tuesday after plummeting 25% Monday, their worst day since the 1991 Gulf War. West Texas Intermediate crude for April delivery rose 10.4% to settle at $34.36 a barrel on the New York Mercantile Exchange, while May Brent crude, the global benchmark, gained 7.7%, to $37.22 a barrel.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
