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Markets Mixed As US Stimulus Hopes Fade Ahead of Deadline

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Key Points

  • Asian and European markets were mixed Tuesday, but fading hopes for a pre-election US stimulus and concerns about a fresh surge in virus infections in key economies weighed on sentiment.
  • There is a growing consensus that even if they do find an agreement—with Donald Trump saying he is happy to even go past Pelosi’s $2.2 trillion proposal—Senate Republicans would still not be prepared to back a massive spending bill.
  • All three main indexes on Wall Street ended more than one percent down. 
  • Visit The Financial Today’s homepage for more stories.

HONG KONG — Asian and European markets were mixed Tuesday, but fading hopes for a pre-election US stimulus and concerns about a fresh surge in virus infections in key economies weighed on sentiment.

With a deadline set for later in the day by House Speaker Nancy Pelosi, analysts said US lawmakers’ weeks of haggling over a much-needed rescue package for the world’s largest economy appear unlikely to bear fruit until after the November 3 vote.

Pelosi’s spokesman said she held talks with Treasury Secretary Steven Mnuchin on Monday and would do so again Tuesday, adding they “continued to narrow their differences.”

But there is a growing consensus that even if they do find an agreement—with Donald Trump saying he is happy to even go past Pelosi’s $2.2 trillion proposal—Senate Republicans would still not be prepared to back a massive spending bill.

“While the two sides seemed to be getting closer to an agreement over the weekend, investors remain nervous that if a new package won’t be accepted before the elections, the consumer economy could be in for a rough holiday season,” said Gorilla Trades strategist Ken Berman.

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