Global Stocks Edge Higher Amid Ongoing Stimulus Negotiations, Rising Coronavirus Infections

Strategic Insights -

Global equity markets were mixed early Tuesday, with investors cautiously optimistic about a potential stimulus deal between the US government and congressional Republicans, even as coronavirus infections continued to rise across the globe. Markets will closely watch efforts to reach a stimulus agreement before the November 3 elections, as any breakthrough could provide a much-needed boost to economic growth.

Key Takeaways:

  • US equity futures traded higher on the possibility of a stimulus agreement, with the Dow Jones Industrial Average expected to open up 160 points and the S&P 500 up 23 points.
  • Corporate earnings will be a key focus point, with Procter & Gamble, Lockheed Martin, and Travelers set to release their quarterly results, along with the publication of September housing starts data.
  • The European region saw a rise in coronavirus infections, with new cases reaching a record high, leading to lockdown orders in Ireland and Italy, and a 10% increase in US cases over the past 10 weeks, with surges in at least 38 states.
  • IBM shares fell nearly 3% after the company declined to publish current-quarter revenue forecasts despite topping earnings estimates for the quarter.
  • European stocks edged higher in early trading, boosted by better-than-expected earnings from UBS and news of Pfizer's late-stage trials of its coronavirus vaccine in Japan.
  • Asia shares were able to claw their way into positive territory despite concerns linked to the rise in global COVID infections and the impending US elections.

Statistics:

  • US equity futures suggest a 160-point opening bell gain for the Dow Jones Industrial Average and a 23-point advance for the S&P 500.
  • The European region saw a 10% increase in coronavirus infections over the past 10 weeks, with surges in at least 38 US states.
  • US cases are now running 10% higher than 10 weeks ago, with a 48-hour deadline set by Pelosi for any stimulus agreement.
  • IBM shares fell nearly 3% after declining to publish current-quarter revenue forecasts.
  • European stocks edged higher in early trading, boosted by better-than-expected earnings from UBS and news of Pfizer's late-stage trials of its coronavirus vaccine.

Sources:

  • "The Tuesday Market Minute" by Martin Baccardax on Yahoo Finance.
  • Bloomberg News.
  • CNBC.
  • Forbes.
  • Wall Street Journal.