Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Markets mixed with all eyes on U.S. stimulus talks

10/21/2020 | 04:18pm EST
Trader works at his desk whilst screens show market data at CMC Markets in London

NEW YORK (Reuters) - Global stocks sought direction on Wednesday, while gold hit a one-week high and the dollar fell to a six-week low as investors waited to see whether an agreement could be reached on a fresh U.S. coronavirus relief package.

The White House and congressional Democrats kept up negotiations on a fresh coronavirus relief bill, though their effort faced opposition in the Republican-controlled Senate, where conservatives object to the trillion-dollar-plus price tag.

U.S. House Speaker Nancy Pelosi said there was still a chance for a deal. But Senate Majority Leader Mitch McConnell privately told his fellow Republicans he did not favor a deal before the Nov. 3 presidential and congressional elections.

Some investors doubted whether a compromise could be reached.

"I'm guessing that we will see stimulus but it won't be until the first quarter," said Paul Nolte, portfolio manager at Kingsview Investment Management.

Equities markets could pull back between 2% to 3% if no deal is agreed, Nolte added.

The Dow Jones Industrial Average fell 0.4% to 28,210.82. The S&P 500 was 0.2% lower at 3,435.56, while the Nasdaq Composite fell 0.3% to 11,484.69.

European shares fell for a third straight session, as concerns over the economic impact of new coronavirus restrictions overshadowed encouraging earnings from consumer giant Nestle and telecoms equipment maker Ericsson.

The pan-European STOXX 600 fell 1.3% to close at its lowest in more than two weeks.

The STOXX 600 has struggled to break out of a trading range since June, when it recouped a large part of the early pandemic-driven losses. The benchmark is still about 16% below its all-time high.

London's exporter-heavy FTSE 100 underperformed, marking its worst session in a month, hit by a surge in the pound after bullish Brexit comments.

Gold, considered a hedge against inflation, currency debasement and uncertainty, has gained more than 26% this year, driven mainly by unprecedented levels of global stimulus to cushion economies from the coronavirus-induced slump.

Spot gold jumped 1% to $1,924.73 per ounce, after touching its highest since Oct. 12 at $1,931.01 in earlier trade. U.S. gold futures settled up 0.7% at $1,929.5.

Bets on the stimulus also played out in government bond markets.

U.S. Treasury yields hit their highest levels in four months on Wednesday on expectations a deal can be reached before dropping back later in the day.

The market knows stimulus is coming one way or another, whether before or after the election, which is helping push up Treasury yields, Patrick Leary, chief market strategist at Incapital in Minneapolis.

"This steepening that you're seeing is pricing in an eventual stimulus package, it's also somewhat pricing in a Democratic sweep in the election," he said.

The benchmark 10-year U.S. Treasury yield rose to 0.814%, up 6 basis points, having earlier touched fresh four-month highs at 0.84%.

The dollar fell against a basket of currencies as hopes for a pre-election stimulus package led traders to buy riskier currencies. It was last down 0.5% at 92.764.

Sterling rose to a one-week high against the dollar after the European Union's Brexit negotiator Michel Barnier said a new trade deal with Britain was "within reach".

The pound rose 1.7% to $1.3172, its highest since Sept. 7. The British currency also rose against the euro by 0.6% to 90.80 pence on the comments.

Oil prices fell after a surprise build-up in U.S. crude stockpiles stoked concerns about a global supply glut.

Brent crude futures for December delivery settled at$41.73 a barrel, down $1.43, or 3.3%, while December U.S. West Texas Intermediate (WTI) crude CLc1 futures settled at $40.03 a barrel, down $1.67, or 4%.

(Reporting by Matt Scuffham; editing by Jonathan Oatis and Lisa Shumaker)

By Matt Scuffham

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL 0.20% 29883.79 Delayed Quote.3.86%
ERICSSON AB -0.52% 104.6 Delayed Quote.28.92%
EURO / BRITISH POUND (EUR/GBP) 0.75% 0.90602 Delayed Quote.5.86%
GOLD 1.07% 1830.5 Delayed Quote.17.24%
LONDON BRENT OIL 1.48% 47.96 Delayed Quote.-27.74%
MSCI UNITED KINGDOM (STRD, UHD) 1.04% 1009.276 Real-time Quote.-17.73%
NASDAQ 100 0.01% 12456.406964 Delayed Quote.42.62%
NASDAQ COMP. -0.05% 12349.366333 Delayed Quote.35.96%
S&P 500 0.18% 3669.01 Delayed Quote.13.36%
STOXX EUROPE 600 -0.05% 391.69 Delayed Quote.-5.76%
WTI 1.78% 44.93 Delayed Quote.-26.33%
Latest news "Economy & Forex"
05:46pUGANDA ECONOMIC UPDATE : Uganda Can Benefit from the Demographic Dividend by Investing More in Education, Health
05:46pUganda's GDP Contracts under COVID-19, Investing in Uganda's Youth Key to Recovery
05:46pWORLD BANK : Trade Watch
05:41pNATIONAL BANK OF SERBIA : Bank Lending Survey – Third Quarter 2020
05:19pU.S. Congress passes bill that could delist Chinese stocks from U.S. markets
05:14pLilly to supply 650,000 more doses of COVID-19 drug to U.S. government
05:11pFAO FOOD AND AGRICULTURE ORGANIZATION OF UNI : and partners advocate for inclusive food systems to combat rural poverty
05:11pEU faces French regulator call to fix derivatives to limit Brexit blow
05:11pBrexit trade deal could come in the next few days, BBC says
Latest news "Economy & Forex"