December 22, 2020: European stock markets rebounded Tuesday from the sharp coronavirus-related falls seen a day earlier.
Asian stock markets retreated, however, as investors continued Monday's sell-off, and, in the US, the Dow Jones index in New York also slipped in midday trading.
The dollar climbed higher however after US lawmakers, as expected, agreed on a massive financial stimulus package.
The pound and crude oil, which slumped Monday on UK virus and Brexit fears, retreated further, but their losses were less pronounced.
As year-end holidays approach, “the playbook for many traders remains to buy every major dip as governments and central banks will keep the support coming next year,” commented Edward Moya, an analyst for the online broker Oanda.
Meanwhile, British Prime Minister Boris Johnson and EU chief Ursula von der Leyen tried to break a logjam over fishing rights with just nine days to go before Britain leaves the EU single market and customs union.
EU negotiator Michel Barnier told media: “We are really in the crucial moment, and we are giving it the final push.”
EU sources then said that Barnier was prepared for the talks to continue into the new year.
In Washington, lawmakers finally passed a bill setting aside around $900 billion in support measures for the ailing US economy, bringing an end to months of haggling.
But analysts said the move had been priced into markets.
“The new… bill will help some workers and businesses get through the winter, but it will do little to accelerate the arrival of an economic recovery,” said David Kelly, at JP Morgan Asset Management.
