Archives of “October 26, 2020” day

rss

Biden will push for immediate $2 trillion stimulus package along with tax increases

  
  Analysis

From Fox Business’ Charlie Gasparino

Now this is a bit dubious coming from Fox Business but Charlie Gasparino is a great reporter, so it’s almost certainly true.
He says that aides to Biden say if elected he will push for a $2 trillion stimulus package immediately along with tax increases and infrastructure spending. Obvious, he will need to control Congress to get that through.
I don’t think the market will care about a tax on incomes above $400K but a corporate tax hike immediately would be a different story.
In other election news, the final NYT poll of Texas has Trump ahead in that state 47-43%.

Tropical storm Zeta leads to US offshore production shutdowns

  
  Analysis

Another storm heads for the northern gulf

Another storm heads for the northern gulf
The volume of hurricanes this storm season is blowing past records. We’re probably beyond the seasonal window for a major storm as waters cool but Zeta is going to cause problems in the gulf. It will approach the US on Wednesday evening “at or near hurricane strength,” according to the NHC.
The storm has already led to many offshore production shutdowns in what’s been a highly-disrupted year.

Major European indices close down sharply led by German Dax

  
Analysis, Global Indices

US stocks also falling sharply

The major European indices are closing the day sharply lower. Germany’s SAP warned of earnings declines going forward which hurt investor sentiment.  The German Dax closed down over -3.5%.   The sharp rise in Covid cases across Europe are also weighing on investor demand.  In the US, stocks are also faltering as well and are not helping overall sentiment..

The provisional closes are showing:

  • German DAX, -3.56%
  • France’s CAC, -1.9%
  • UK’s FTSE 100, -1.18%
  • Spain’s Ibex, -1.2%
  • Italy’s FTSE MIB, -1.6%
In the US market, the Dow industrial average is now down over 800 points or -2.88%. The S&P index is also down sharply. It is currently trading down 80.89 points or -2.34% at 3384.43. The NASDAQ index is down -2% at 11317.55.

Ifo economist: German economy growing more nervous as coronavirus infections rise

  
  Analysis

Comments by Ifo economist Klaus Wohlrabe

  • Anticipates growth of 2.1% in Q4
  • Forecast is barring a second lockdown
  • Closure of schools, daycare would have massive impact on the economy
  • Export expectations have deteriorated given latest virus situation
  • Auto sector is an exception to the gloom in the general economy

Germany is on the precipice of seeing its virus situation escalate in a similar manner as we have seen with Spain and France recently, and such a turn of events would be a major blow for Europe’s biggest economy.

The active virus cases reported across the country has doubled from 50,000 to over 100,000 in just 10 days with over 250 districts now deemed as ‘high risk’ areas.
As mentioned in the daily reports, if this sees tighter restrictions introduced, it will weigh more heavily on the economic prospects of the country and the region. In turn, that will present more of a headwind for risk assets and the euro as such.

AstraZeneca says encouraging to see vaccine trial responses were similar between older and younger adults

  
  Analysis

AstraZeneca comments on early safety data of its vaccine trial

  • Immunogenecity responses were similar between older and younger adults
  • Reactogenecity was lower in older adults
  • But results further builds evidence for safety, immunogenecity of the vaccine
This relates to the earlier story here. Though as mentioned earlier, while the news is encouraging, final conclusions can only be drawn until full trial data is available and analysed accordingly. But at least there’s some slight glimmer of hope.
Go to top