Global equities tread water while dollar slips

In this news, we discuss the Global equities tread water while dollar slips.

NEW YORK (Reuters) – Global equities stalled and the dollar slipped on Monday as Wall Street investors sidelined ahead of corporate earnings season as record daily coronavirus infections in Europe raised concerns.

US stocks fell slightly on the 33rd anniversary of the 1987 “Black Monday” crash, when the Dow Jones Industrial Average lost 22.6% in one day, which equates to a drop of about 6,500 index points today.

Investors were waiting to see how large companies that were due to release a report later in the week, such as Netflix and Tesla, fared in the last quarter before committing funds, said Dennis Dick, trader at Bright Trading. LLC.

“I think the markets are going to lack direction for a few days until we have some clarity on what these earnings look like,” he said.

Investors are also waiting to see whether the final debate between US President Donald Trump and his Democratic challenger Joe Biden will change the course of the election.

Even news of potential progress towards a COVID-19 vaccine had only a moderate impact. Drug maker Pfizer Inc said on Friday it could have a coronavirus vaccine ready in the United States by the end of this year.

“The market is getting numb to a certain extent because we make headlines about vaccines every other day,” Dick said.

The Dow Jones Industrial Average .DJI was down 100.05 points, or 0.35%, to 28,506.26, the S&P 500 .SPX was down 15.01 points, or 0.43%, to 3,468.80 . The Nasdaq Composite .IXIC is down 36.10 points, or 0.31%, to 11,635.45.

The dollar fell slightly as investors raised bets that a deal in Washington on a fiscal stimulus package could be reached before the next US election.

The safe haven greenback’s move came after House Speaker Nancy Pelosi said that while differences remained with President Donald Trump’s administration over a broad coronavirus relief program, she believed legislation could be passed before election day.

With investors’ risk appetite on the rise, the dollar index fell 0.41%, making some of its 0.7% rise from last week when a surge global coronavirus cases and a stalemate on the stimulus plan have fueled caution.

Gold rose as the dollar retreated and expectations of a stimulus deal made bullion more attractive as a hedge against inflation. Oil futures have fallen on Libya’s plan to boost production.

European stocks closed lower as the surge in COVID-19 cases raised the possibility of further economic restrictions.

Parts of the UK have been locked out and France has imposed curfews.

The pan-European STOXX 600 .STOXX index closed 0.3% lower.

Trading volumes in Europe were significantly lower due to a technical problem at the stock market operator Euronext, which led to the cessation of trading activity on the Amsterdam, Brussels, Lisbon and Paris stock exchanges.

In Asia, investors took comfort in China’s economic recovery in the third quarter as consumers avoided their coronavirus warning.

The largest MSCI index of Asia-Pacific stocks outside of Japan rose 0.5% for second straight day of gains, declining after third-quarter gross domestic product data from China .

In currency markets, the pound sterling rose after the European Union said it was ready to step up negotiations for a deal on future trade ties with Britain. The British pound rebounded to nearly $ 1.30 against the dollar on Monday, up 0.5% to $ 1.2980, while the euro traded 0.3% higher at 1.1756 $.

The yuan hit a new 1-1 / 2 year high against the dollar, while the US dollar slipped 0.4% to 93.295 against a basket of six major currencies. [USD/]

XAU = spot gold rose 0.4% to $ 1,906.36 an ounce. US GCv1 gold futures stabilized 0.3% at $ 1,911.70.

Brent LCOc1 futures fell 0.7% to $ 42.62 per barrel. West Texas Intermediate (WTI) US crude CLc1 futures are 0.1% at $ 40.83 per barrel.

Additional reporting by Swati Pandey in Sydney and Thyagaraju Adinarayan in London, edited by Chizu Nomiyama and Nick Zieminski

Original © Thomson Reuters

Originally posted 2020-10-19 14:26:12.

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