Yesterday, the oil markets recovered, boosted by the Republican coronavirus plan release and despite the advance of the pandemic.
The Senate Republicans disclosed a $1 trillion coronavirus aid package. The plan described as “tailored and targeted” by the Republican lawmaker, Mitch McConnell, aims to get children back to school and employees back to their jobs, protecting corporations from legal action, includes a direct $1,200 payment to every American as well as around 290 billion in loans to businesses in need.
The plan was opposed by both Democrats and Republicans for different reasons. The Republican party members who oppose the proposal claimed that the plan is too expensive, while the Democrats said that the plan is too limited compared to their previously proposed $3 trillion plan, which was approved by the House of Representatives in May.
Another controversial point is that the Republicans intend to cut the current weekly addition to the unemployment benefit from $600 to $200. In the past, some party members claimed that such a measure encourages some Americans to stay home instead of getting back to the workforce and since it added to the unemployment benefit, it exceeded the wages of certain workers.
Now both Republicans and Democrats are amid a negotiation that will determine whether the plan will be implemented or not. Regarding this, the House Speaker Nancy Pelosi commented that the Democrat party hopes to reach a deal, highlighting that despite both parties don't have shared values they're willing to find out whether there is a common ground to go forward.
The Commerce Department published June's Durable Goods Orders, which increased by 7.3 percent, after increasing by 15.1 percent on the previous month. Nondefense Capital Goods Orders increased by 3.3 percent, after increasing 1.6 percent on the previous month.
The West Texas Intermediate oil futures gained 1.24 percent during the session, closing at the 41.60 level. On the other hand, Brent oil futures went down by 0.34 percent, closing the session at the 43.41 level.
The coronavirus pandemic continues advancing around the world. At the moment there are 16,650,148 confirmed infection cases, as well as a death toll of 656,621. In the United States, there are 4,433,410 confirmed cases and 150,444 deaths, making it the most affected country in the world, followed by Brazil, India, and Russia.
The US stock markets gained territory during yesterday's session. The Dow Jones Industrial Average gained 0.43 percent, closing the session at the 26,584.77 level, while the S&P 500 advanced 0.74 percent during the session, closing at the 3,239.41 level. Conversely, the Nasdaq 100 gained 1.82 percent, closing at the 10,674.38 level.
On the other hand, the European stock markets lost territory during the session. The DAX remained almost steady, adding 0.02 percent, closing the session at the 12,838.66 level, while the CAC 40 lost 0.34 percent during the session, closing at the 4,939.62 level. Conversely, the IBEX 35 dropped by 1.70 percent, closing the session at the 7,170.60 level, while the Euro Stoxx 50 went down by 0.24 percent during the session, closing at the 3,302.84 level.