Global Stock Markets Mostly Firmer
Global stock markets were mostly firmer Friday on hopes US leaders will finally agree a coronavirus economic stimulus package but sharply rising case numbers and weak data in Europe capped gains there
London, (UrduPoint / Pakistan Point News - 23rd Oct, 2020 ):Global stock markets were mostly firmer Friday on hopes US leaders will finally agree a coronavirus economic stimulus package but sharply rising case numbers and weak data in Europe capped gains there.
New York opened flat and then slipped back, with company results a mixed bag that produced some sharp share price losses -- Intel was down 11 percent.
The markets are watching closely to see if, as seems to be the case, the upward momentum of the third quarter slows in the final quarter of the year as governments introduce new restrictions to tame the upsurge in the pandemic.
Investors appeared largely unmoved by the final presidential debate between Donald Trump and Joe Biden before the November 3 vote.
Democratic House Speaker Nancy Pelosi said both parties "continue to be engaged in negotiations, and I am hopeful we will be able to reach an agreement." Pelosi has sought this week to pin down a deal with Republican President Trump's Treasury Secretary Steven Mnuchin even as Senate Republicans remain unconvinced.
- 'Encouragement in uncertain times' - "Stock markets (are) getting a bit of a boost into the end of the week as Mnuchin and Pelosi work towards a stimulus package," said OANDA analyst Craig Erlam.
"Given the opposition among Republican senators to the large package that the White House and House Democrats are negotiating, it would seem as if the markets are more focused on the likelihood (of a deal) later," said Karl Haeling of LBBW.
Bets on a Biden win and a Democratic sweep of both houses of Congress have risen recently, with the consensus being that such an outcome would see the passage of an even bigger stimulus than the one of around $2 trillion being discussed now.
In Europe, Frankfurt, Paris and London stocks advanced despite survey data showing that economic activity shrank due to a resurgence in coronavirus.
London was also boosted by bright earnings from British bank Barclays and rebounding retail sales.
Data provider IHS Markit said that its closely watched composite eurozone PMI index fell in October for the third consecutive month to 49.2 points from 50.4 points in September.
Any reading above 50 points indicates that business activity is expanding, but a level below 50 points means the economy is contracting.
- Key figures around 1400 GMT - New York - Dow Jones: DOWN 0.3 percent at 28,382.54 points London - FTSE 100: UP 1.3 percent at 5,860.28 Frankfurt - DAX 30: UP 0.8 percent at 12,645.75 Paris - CAC 40: UP 1.2 percent at 4,909.64 EURO STOXX 50: UP 0.7 percent at 3,193.03 Tokyo - Nikkei 225: UP 0.2 percent at 23,516.59 (close) Hong Kong - Hang Seng: UP 0.5 percent at 24,918.78 (close) Shanghai - Composite: DOWN 1.0 percent at 3,278.00 (close) Euro/dollar: UP at $1.1841 from $1.1818 at 2100 GMT Dollar/yen: DOWN at 104.78 yen from 104.86 yen Pound/dollar: DOWN at $1.3128 from $1.3145 Euro/pound: UP at 90.83 pence from 90.33 penceWest Texas Intermediate: DOWN 1.5 percent at $40.01 per barrelBrent North Sea crude: DOWN 1.4 percent at $41.86