The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
US equities were mixed as investors weighed corporate earnings and news of Advanced Micro Devices Inc.’s $35 billion takeover of another chipmaker with concerns about growing virus infections. The dollar slipped.
Technology shares were among the best performers after AMD said it would buy Xilinx Inc. Energy shares and financial companies dragged on the major indexes. The S&P 500 was little changed after the index suffered its biggest daily loss in a month.
The Stoxx Europe 600 Index erased most of its decline after earlier heading toward its lowest close since June amid concern about the faster spread of the coronavirus on the continent.
Results from powerhouses HSBC Holdings Plc and Banco Santander SA signaled a brighter outlook for dividends. BP Plc warned of many challenges ahead as the pace of recovery in oil demand remained uncertain.
Stocks have been knocked around in recent weeks by speculation about whether lawmakers will pass a fiscal stimulus package, but with almost no possibility of that happening before Americans vote November 3, investors are looking for market catalysts on Tuesday from data and earnings.
A consumer confidence report is due as the coronavirus infects tens of thousands of Americans daily and weighs on the economy, as well as results from Microsoft Corp.
“Covid case counts and hospitalisations continue to rise — these will continue to be closely watched as investors gauge the likelihood of more stringent mitigation measures,†said Yousef Abbasi, global market strategist at StoneX.
Elsewhere, crude oil nudged higher. Bitcoin rose toward $13,500, approaching levels not seen since just after the burst of the cryptocurrency market bubble almost three years ago.
Meanwhile, the Chinese Communist Party’s Central Committee holds its all-important plenum, where it’s expected to chart the course for the economy’s development for the next 15 years.
Brexit negotiating teams have started intense daily negotiations, and these are likely to continue as both sides push to finalise a deal by the middle of November.
Bank of Japan and the European Central Bank are expected to announce monetary policy decisions on Thursday, followed by briefings from Governor Kuroda and President Lagarde.
The first reading of US 3Q GDP on Thursday is anticipated to be the strongest on record following a record dive in the prior quarter as many businesses were shuttered by the pandemic.
The S&P 500 Index falls 0.1% as of 9:35 am New York time and the Stoxx Europe 600 Index decreased 0.4% and the MSCI Asia Pacific Index falls as much as 0.1%.
While the Bloomberg Dollar Spot Index dipped 0.2%, the British pound rose 0.2% to $1.3044 and the Japanese yen strengthened 0.3% to 104.58 per dollar.
The yield on 10-year Treasuries dipped two basis points to 0.78% and Germany’s 10-year yield decreased one basis point to -0.59%. Britain’s 10-year yield fell one basis point to 0.26%.
While West Texas Intermediate crude added 0.7% to $38.84 a barrel, gold strengthened 0.1% to $1,904.96 an ounce.