Markets mixed after US passes fiscal stimulus

Markets were mixed on Monday.

The STOXX Europe 600 surged 2 percent but the S&P 500 reversed early gains to close 0.5 percent lower while earlier in the day, the Shanghai Composite plunged 2.3 percent.

“Investors remain wary of the impact that the massive Biden fiscal experiment will have on longer-term interest rates, making for a fragile equity environment,” analysts at ANZ Research said in a morning note on Monday after the US Senate passed a US$1.9 trillion economic relief and stimulus bill on Saturday.

However, hedge fund manager David Tepper said “rates have temporarily made the most of the move and should be more stable in the next few months, which makes it safer to be in stocks for now”.