Following reports of improvement in US President Donald Trump’s health, the stock markets in the country bounced back on Monday, as per an AFP report. Stock markets were also driven by signs of American law markers edging towards agreement on a new stimulus package. 

Global equities had sunk on Friday following the President’s positive diagnosis for COVID-19, as it signalled fresh uncertainties a month ahead of the US Presidential election.

Oil prices in the country have also started recovering following last week’s heavy losses, reported AFP.

President Trump’s medical team on Sunday confirmed that the President’s health “continued to improve”, following conflicting reports of severity of his condition. The US President had to be hospitalised after showing aggravated symptoms for COVID-19 on Friday, with oxygen saturation in blood levels falling drastically. 

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CMC’s market analyst David Madden told AFP, “Stock markets in Europe are showing respectable gains… on the back of the optimism surrounding the health of President Trump.”

“At the end of last week, it was announced that the US leader tested positive for Covid-19 and that hurt market confidence,” said market expert Madden.

 He added, “In a video, Donald said he was receiving ‘great reports from the doctors’, and that has encouraged traders to buy back into the market.”

Over the weekend, the US President also requested Republicans and Democrats to set aside political difference and show bipartisanship and sign a new deal with respect to the proposed coronavirus package.

Market analysts have suggested that the President’s positive diagnosis for COVID-19 could urge congressional leaders to pass a second economic rescue package.

The US President also urged lawmakers to reach for a tweet, tweeting from the hospital, “OUR GREAT USA WANTS AND NEEDS A STIMULUS. WORK TOGETHER AND GET IT DONE! Thank You!”

Democratic leader Nancy Pelosi and Treasury Secretary Steve Mnuchin have held a series of talks aimed at passing a third tranche of stimulus package, with the Democrats proposing $2.2 trillion dollars, $600 billion in excess of what the Republicans are willing to cough up.

Senate Majority leader Mitch McConnell also offered a hopeful tone on the issue and said, “I think we’re closer to getting an outcome,” as per AFP report.

The need for a fresh package was highlighted Friday by data showing the US economy created fewer jobs than expected in September as the recovery enjoyed through summer stutters.

BTIG strategist Julian Emanuel told AFP, “The dramatic turn of events may be a catalyst for a stimulus agreement — or it may not; we wait for bills to be put to Congress and votes to be taken.”

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“With key economic data extending its run of disappointments versus expectations and high-profile corporate layoffs, additional aid would seem imperative,” added Emanuel.

Observers have notified that markets are largely pricing in a Joe Biden victory over Trump next month, as per an AFP report. They are also expectant of a clean sweep for Democrats in House and Senate polls, despite expectations of higher taxes and regulations.