Hopeful optimism reigns for the time being
European indices are hovering near 2% gains on the session now with US futures also creeping a little higher in the past hour, as S&P 500 futures are now up ~0.4%.
As much as there are hints of exuberance and optimism now, it is tricky to read too much into the gains as a lot is still hinging on Congress to push something - or anything - through sooner rather than later.
The payroll tax cut by Trump over the weekend is definitely a positive but the bigger picture is that we end up in a situation where chances are stimulus talks get delayed again.
The added uncertainty of when payments will happen is also a key point to consider in all of this and adding that to the fiscal cliff, there are still risks down the road.
As good as there are reasons for stocks to gain - as they are doing so far today - there are also reasons for why that optimism may be and can be quickly tempered with.
As things stand, Washington remains the key focal point for risk trades this week. Let's see what US lawmakers will serve up later in the day.
