Quiet pre- election trading seen across globalmarkets
INVESTORS LOOK TO THE US FOR CUES ON POST- VOTE ECONOMIC OUTLOOK
As global markets anticipate a highly contested US election little over a week away, investors will meanwhile await any new hints this week on who will likely win the presidency of a key economy.
With the day of the election and the following weeks widely expected to be detrimental to markets, global investors were hoping for more cues on how the vote will impact the shortterm view of the world’s top economy, which currently continues to reel in a surge of new Covid- 19 cases.
“The final US presidential debate was less chaotic than the first but offered little new information to in form the result for markets,” wrote Stephen Innes, Chief Market Strategist for Axicorp. “Meanwhile, talks relevant to the post- election economic outlook was limited, particularly from President Trump.”
Stimulus unlikely before vote
Wall Street investors late last week were weighing betterthanexpected weekly unemployment claims in the US against continued monetary stimulus negotiations, with Senate Republicans showing little sign of support for a potential deal.
Investors worldwide in the past weeks have been gauging the chances of a deal on more fiscal support for the struggling economy. However, prospects of a deal have dimmed as it looks unlikely that Democrats and Republicans will this week strike a bargain on an aid package.
New US weekly jobless claims totaled 787,000 last week, coming in below the median economist estimate of 870,000. It also marked a decrease from the prior week’s revised total.
Additionally, several earnings reports from big US companies came in better than analysts had expected, which helped put investors in a buying mood. With earnings season in full swing, investors are hinted that some firms are adapting to uncertainty about a global pandemic that may extend deep into next year.
Overall, 73 companies in the S& P 500 index have offered guidance this quarter so far, a number that is well below the 170 firms that typically offer guidance.