X

Select the account you'd like to open

Rising Covid, US logjam hits sentiment

Rising Covid, US logjam hits sentiment

US stocks slumped overnight as daily infection rates rose to record levels and the US Congress appears unlikely to reach a fiscal response before the election. European markets were restrained by a seeming impasse on Brexit negotiations, and the Euro rose as investors repatriated funds.

Procedural requirements mean that a deal between Democrats and Republicans on further support must be reach within 24 hours if it is to pass both houses before the elections on November 3. A last minute deal is still possible, but investor pessimism is growing.  Rising infection rates in multiple US states highlights the crucial nature of fiscal support for the US economy.

The 1.5% tumble is US stocks came despite a good start to the US reporting season. Only 10% of reports are in, but so far they show earnings growth in industrials and IT stocks, and less damage in financial stocks than feared. Materials stocks are also faring better, although the energy sector continues to go backwards.

Asia Pacific markets likely to open lower this morning as investors move to the sidelines. Commodity currencies came under renewed pressure overnight, and stock futures finished the overnight session in the red. Currency traders will look to the release of the minutes from the RBA October meeting.


Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.