$2 trillion doesn't buy what it used to
Equity futures lower despite huge US stimulus
US Senators have reached a bi-partisan deal on a $2 trillion bill that includes payments to just about everyone. Canadian parliament also agreed on an $82B package.
Even with that US equity futures are 1.8% lower. That can change in a hurry but every bit of 'good' news from the Fed or Treasury is met with a wave of bad news about the virus.
The numbers from Spain were jarring today with 7937 new cases from 5,552 yesterday and 443 new deaths. With 3,434 dead, they've now surpassed the official count from China.
Numbers are also rising in Tokyo and the threat of a lockdown there is growing.
Over news hits home like Prince Charles testing positive and NBA player Karl-Anthony Towns revealing his mother is in a coma.
I think this is an important moment for risk assets in general. I believe the Fed's extraordinary actions have averted an acute financial crisis but the scale of the economic damage is coming into focus and even $2 trillion isn't enough to fix it.
All told, I think the rally in equities and unwind in the dollar can continue for another day or two. If I'm wrong and it falls apart today, then it can get ugly fast.