Invest
World markets back Trump’s plan
Wall Street has backed Trump’s stimulus package and plans to take the clamps off the economy by letting people out of isolation, leading to the largest one day rally since 1933, an industry expert has said.
World markets back Trump’s plan
Wall Street has backed Trump’s stimulus package and plans to take the clamps off the economy by letting people out of isolation, leading to the largest one day rally since 1933, an industry expert has said.

The US President will take a different approach to Australia and the United Kingdom, opening up it’s country despite the risks of the COVID-19 pandemic.
“I give it two weeks,” Mr Trump said earlier in the town hall, suggesting he was ready to phase out his 15-day self-isolating guidelines when they expire. “I guess by Monday or Tuesday, it’s about two weeks. We will assess at that time and give it more time if we need a little more time. We have to open this country up,” Mr Trump told media in the US.
According to Franklin Templeton’s chief investment officer, Dr Sonal Desai, supporting the US economy through the black swan event of the coronavirus will allow the US to have a strong recovery in the second half of the year, provided the shutdown is short and a major stimulus is announced in the next few days.
“The fiscal support package currently in Congress amounts to about $2 trillion, or 10 per cent of US gross domestic product.”

“In synergy with the Fed’s array of measures, it would allow a large share of businesses and households to weather the storm. The damage to the economy – and to the livelihood of countless individuals – will still be substantial, but this combination of fiscal and monetary policy would allow the majority of businesses to avoid bankruptcy and to rehire/pay their workers as the emergency ends,” Dr Desai said.
A combined “shock and awe” fiscal and monetary support is also needed to reassure financial markets while we still face significant uncertainty on the duration of the crisis. Without the fiscal component, monetary policy cannot do it on its own – and investors clearly realise this.
“The Federal Reserve has raised its response to the coronavirus crisis to a whole new level, announcing open-ended quantitative easing as well as purchases of short-dated investment-grade corporate debt and exchange-traded funds, measures that had not been adopted even at the height of the global financial crisis just over a decade ago,” Dr Desai said.
The news out of the US was positive for Australia’s S&P 200, which was up 3.7 per cent at lunch time.
Japan’s Nikkei 225 was up nearly 6 per cent and the United Kingdom’s FTSE 250 was up 8.3 per cent on the close.
About the author

About the author


Stock market
International stocks: Diversifying your portfolio beyond Australia
In an increasingly globalized market, Australian investors have the opportunity to enhance their investment portfolio by incorporating international stocks. Diversifying your investments globally can ...Read more

Stock market
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, ...Read more

Stock market
US stock rally driven more by valuation growth than earnings, leaving tech names vulnerable: Innova
The strong gains in US stocks over the past year, particularly in the technology sector, have been driven more by expanding valuations than underlying earnings growth, leaving them exposed to a ...Read more

Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more

Stock market
Nasdaq hits record high, underscores the value of tech in investment portfolios
The Nasdaq Composite's surge to an all-time high last Friday highlights the importance of incorporating technology into investment strategies. Read more

Stock market
Apple sets an unprecedented profit pace within the GAFAM group in 2023
After navigating through the economic difficulties presented in 2022, the technology sector has demonstrated resilience and growth, with many companies seeing increases in revenue and stock value. Read more

Stock market
Fintech startup okoora unlocks over $3 billion in forex savings for businesses
Fintech innovator okoora has announced it has saved customers a monumental amount over $3 billion through international foreign exchange transactions. Read more

Stock market
Google's Gemini edges out ChatGPT4 in groundbreaking AI showdown
Google's latest AI model, Gemini, has edged out OpenAI's ChatGPT4 in a recent set of rigorous multi-discipline tests, marking a significant milestone in the large language model (LLM) sector. Read more

Stock market
International stocks: Diversifying your portfolio beyond Australia
In an increasingly globalized market, Australian investors have the opportunity to enhance their investment portfolio by incorporating international stocks. Diversifying your investments globally can ...Read more

Stock market
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, ...Read more

Stock market
US stock rally driven more by valuation growth than earnings, leaving tech names vulnerable: Innova
The strong gains in US stocks over the past year, particularly in the technology sector, have been driven more by expanding valuations than underlying earnings growth, leaving them exposed to a ...Read more

Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more

Stock market
Nasdaq hits record high, underscores the value of tech in investment portfolios
The Nasdaq Composite's surge to an all-time high last Friday highlights the importance of incorporating technology into investment strategies. Read more

Stock market
Apple sets an unprecedented profit pace within the GAFAM group in 2023
After navigating through the economic difficulties presented in 2022, the technology sector has demonstrated resilience and growth, with many companies seeing increases in revenue and stock value. Read more

Stock market
Fintech startup okoora unlocks over $3 billion in forex savings for businesses
Fintech innovator okoora has announced it has saved customers a monumental amount over $3 billion through international foreign exchange transactions. Read more

Stock market
Google's Gemini edges out ChatGPT4 in groundbreaking AI showdown
Google's latest AI model, Gemini, has edged out OpenAI's ChatGPT4 in a recent set of rigorous multi-discipline tests, marking a significant milestone in the large language model (LLM) sector. Read more