On-off stimulus hopes may keep markets on their toes

THE stock market, the economic recovery and the American president are all back on their feet, helped by improvements in Covid-19 medications and hopes over a second round of stimulus.

US stocks rose sharply last week, and the major indexes closed at their highest levels since the summer on US President Donald Trump's roughly US$1.8 trillion stimulus proposal.

While strategists think it's unlikely that any bipartisan relief bill will pass before the election, it now seems certain that Americans and corporations will be receiving a second round of cheques and no-recourse loans by the end of the year.