Equities rise on eve of high-stakes US vote
london — Global equity markets mostly rose on Monday after last week’s painful global selloff, with attention focused on the US presidential election and a backdrop of rising coronavirus infections across the United States and Europe.
After a hesitant start, Europe rebounded sharply as dealers shrugged off a growing number of virus lockdowns in the region, including in England, though analysts cautioned against complacency.
In afternoon deals, London gained 1.3 per cent while Frankfurt and Paris each rose by around two per cent.
Wall Street opened higher, with the Dow gaining 1.2 per cent.
“It’s an encouraging rebound that we are seeing — but I am not getting carried away yet,” Oanda analyst Craig Erlam told AFP. “There are so many major risk events over the next few days,” he warned, adding that a contested US vote would be “the worst possible outcome”.
Asia was buoyed by upbeat Chinese PMI manufacturing data published over the weekend as the world’s second-biggest economy regains strength.
“Perhaps the PMI data is giving these markets a bit of a bump but even this is not anything to get too excited about,” added
Erlam. “Europe is going back into lockdown and it may just be a matter of time until the US follows suit.”
“This week would have been chaotic for investors at any rate, but viewed through the intensifying pandemic lens as Covid-19 rages in the West, it could spell mayhem,” said Axi strategist Stephen Innes.
Analyst Patrick J. O’Hare at Briefing. com said that rising equities should not be interpreted as “a tacit message of comfort about the election outcome”. —