Dow Futures Rise 76 pts; Federal Reserve Meeting spotlighted by

© Reuters.

From Peter Nurse – US stocks will open higher on Wednesday, continuing gains from the previous session. Legislature is discussing another Covid bailout package and the Federal Reserve will complete its final policy-making session.

At 7:05 a.m. CET (1205 GMT) the contract rose 76 points or 0.3%, traded 10 points or 0.3% higher and rose 25 points or 0.2%.

Tuesday’s 1.1% increase in value rose 1.3% while the index rose 1.3% to close at another record high.

House Speaker Nancy Pelosi met with Senate Majority Leader Mitch McConnell and other senior lawmakers late Tuesday to seek agreement on a comprehensive government funding bill and coronavirus relief package.

There is growing confidence that both sides can compromise by the end of the week. A $ 748 billion Covid aid proposal, including aid for vaccine distribution and unemployment benefits, appears to have both parties support.

The Federal Reserve will close its 2020 final later Wednesday, with the central bank potentially making plans for additional asset purchases to provide more support to the pandemic-hit economy.

These decisions about additional fiscal and monetary incentives are taking place as the pandemic builds across the country. The US has recorded over 300,000 virus-related deaths, with daily cases and deaths at record levels.

Is more positive Moderna ‘s (NASDAQ 🙂 Covid-19 vaccine is expected to receive regulatory approval this week and will complement Pfizer’s drug, which received approval late last week and is currently being rolled out to the population.

The main economic release on Wednesday will be the November number. It is expected to be down 0.3% from the previous month’s profit, with the surge in the virus causing shutdowns and likely offsetting a strong start to the holiday shopping season. The December PMI and data is also due, followed by better than expected European equivalent data early Wednesday.

In the e-commerce company division Context logic (NASDAQ :), trading as Wish, is expected to trade on Nasdaq after the IPO was valued at $ 24 per share and raised $ 1.1 billion.

Oil prices fell back on Wednesday after a surprise surge in the US, refocusing on the impact on demand as the number of easing caused by the surge in Covid-19 cases tightened.

Crude oil inventories rose nearly 2 million barrels in the week ending December 11, compared to the expected draw of 3.5 million barrels, according to industry group API. Officials are scheduled for later Wednesday.

Futures traded 0.1% lower at $ 47.61 a barrel, while the international reference contract fell 0.1% to $ 50.73.

Elsewhere, it rose 0.4% to $ 1,862.30 / ounce, while it rose 0.4% to 1.2193.