Stocks Jump After Mnuchin Says There Is “Bipartisan Urgency” For Fiscal Package, Italy Stimulus May Reach €16BN

After dipping in the red earlier after reports that a US fiscal package is nowhere near ready, stocks have burst higher after earlier vague news of a $300 billion proposal for a fiscal package, and more recently, a Bloomberg report that Italy’s government is considering raising its deficit as much as just under 3% of GDP, which would grant leeway for a stimulus package of as much as €16 billion. Overnight reports speculated that the budget deficit would rise between 2.2% and 2.8% of GDP, indicating that Italy is hoping to push through as much stimulus as it can get away with under the EU’s framework.

Separately, and further fueling the rally, Treasury Secretary Mnuchin said after meeting House Speaker Pelosi, that there is Bipartisan urgency to pass a relief package, adding that there are some things Treasury can do on its own to provide relief which are being explored.

Finally, wires reported that Senator Shelby said options were being mulled to buffer US oil producers could include longer-term loans.

As noted above, this barrage of favorable stimulus news and speculation has helped stock ramp almost back to session highs, with the Dow trading over 600 points higher at last check.