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U.S. Stocks Set To Open Higher As Traders Await New Coronavirus Aid Package

New Coronavirus Aid Package Coming Soon

Republicans have agreed on the details of the new $1 trillion coronavirus aid package that should help workers and boost the economy and are ready to start negotiations with Democrats.

Full details of the proposal have not been made public, but the package is expected to include direct payments of $1200 in August. Unemployment benefits are projected to be reduced to 70% of the workers’ previous pay.

Negotiations will likely be intense but are expected to be concluded this week as key benefits from the previous package as set to expire at the end of July.

S&P 500 futures are gaining ground in premarket trading as investors bet that another stimulus package will push asset prices higher.

Gold Rallies To A Record High

Gold rallied to a record high and almost crossed the $1950 mark on a spot basis as the unprecedented monetary stimulus from the world central banks and ultra-low interest rates fueled demand for precious metals.

In addition, the U.S. dollar is falling against a broad basket of currencies, providing additional support to gold. The U.S. Dollar Index has recently managed to settle below March lows at 94.65 and continued its downside trend, falling below the 94 level.

The major gold rally will likely provide significant support to gold mining stocks, most of which are already gaining ground in the premarket trading session.

While many catalysts are pushing gold higher, it should be noted that gold has reached extremely overbought levels and the risk of a near-term correction is high.

Durable Goods Orders Increase By 7.3%

The U.S. has just released Durable Goods Orders data for June. On a month-over-month basis, Durable Goods Orders increased by 7.3%. Analysts expected that Durable Goods Orders will grow by 7.2%.

Excluding transportation, Durable Goods Orders increased by 3.3% compared to analyst consensus which called for growth of 3.5%.

Durable Goods Orders showed solid rebound in June and were mostly in line with analyst expectations. The next month’s report will be more interesting as it will show whether problems on the coronavirus front put pressure on Durable Goods Orders in July.

For a look at all of today’s economic events, check our our economic calendar.

This article was originally posted on FX Empire

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