US lawmakers have agreed on a $2 trillion stimulus deal supporting American taxpayers and businesses affected by the coronavirus pandemic.
The draft package is the world’s biggest fiscal response to a crisis that has brought much of the global economy to a standstill. The legislation still requires formal approval by Congress.
“At last, we have a deal,” said Mitch McConnell, the Senate majority leader.
“The Senate has reached a bipartisan agreement on a historic relief package for this pandemic,” he said, calling the measure a “wartime level of investment into our nation”.
Mr McConnell said the Senate would pass the legislation later on Wednesday.
The deal includes four extra months of unemployment insurance for those who lose their jobs. It also prohibits bailed-out airlines from buying back stock or issuing bonuses to chief executives while they received taxpayer support.
The bill will also prevent businesses controlled by US president Donald Trump, vice-president Mike Pence, members of Congress and other senior government officials from receiving government aid.
Stocks rose on news of the deal, with the FTSE 100 opening around 1.5 per cent higher and the Europe-wide Stoxx 600 increasing by 1.8 per cent.
China’s CSI 300 was up 2.7 per cent and Hong Kong’s Hang Seng index was 3.1 per cent higher in late afternoon trading.
US shares rose on Tuesday as lawmakers signalled a deal was close, with the benchmark S&P 500 closing up 9.4 per cent and the Nasdaq finishing the day 8.1 per cent higher.