S&P 500 futures are gaining ground in premarket trading as traders believe that a new $908 billion bipartisan coronavirus aid package plan has good chances to succeed.
Finally, it looks like Republicans and Democrats may come up with a compromise deal although it remains to be seen whether the new plan will gain enough traction.
Stock traders think that a new stimulus package will be delivered soon. Currency traders agree with this view, and the U.S. dollar is testing yearly lows on expectations of additional money-printing.
Unemployment Rate Declines To 6.7%
The U.S. has just released Non Farm Payrolls and Unemployment Rate reports for November.
The Non Farm Payrolls report indicated that the economy added 245,000 jobs in November. Analysts expected that 469,000 jobs would be added so the report was much worse than expected.
Meanwhile, the Unemployment Rate report exceeded expectations as Unemployment Rate decreased from 6.9% to 6.7% compared to analyst consensus of 6.8%.
Employment reports that were published in recent days painted a mixed picture. While the job market is under some pressure due to the second wave of coronavirus, the rebound continues, although at a slower pace.
Oil Tries To Settle Above The $46 Level After OPEC+ Decides To Gradually Increase Production
OPEC+ has finally managed to reach a compromise deal on the group’s supply policy for the beginning of 2021.
OPEC+ decided to increase production by 500,000 barrels per day (bpd) in January. After this, it will evaluate the situation on a monthly basis. Originally, OPEC+ was set to increase production by 2 million bpd but the second wave of coronavirus put additional pressure on the oil market and the group had to change its plans.
At this point, it looks like the oil market is happy with the outcome. While the best-case scenario implied a three-month extension of current production cuts, the new deal will provide the necessary flexibility and help adapt production levels to market’s needs.
Not surprisingly, many oil-related stocks are gaining ground in premarket trading and look ready to continue their rebound.