World Shares, US Futures Gain on Friday10/23 05:22
World shares and U.S. futures advanced Friday after President Donald Trump
and his challenger former Vice President Joe Biden faced off in their second
and final debate before the Nov. 3 election.
(AP) -- World shares and U.S. futures advanced Friday after President Donald
Trump and his challenger former Vice President Joe Biden faced off in their
second and final debate before the Nov. 3 election.
Stocks rose Friday in Paris, London and Tokyo but declined in Shanghai. The
debate over, investors will again be focused on hopes for another round of aid
for the U.S. economy.
House Speaker Nancy Pelosi said progress was being made on talks to deliver
more stimulus but it remains unclear if the Democrats and Republicans will
manage to set aside their differences to provide help for businesses and
millions of people who have lost their jobs during the coronavirus pandemic.
In their debate late Thursday, Trump and his Democratic challenger Biden
managed a more substantive exchange than during their first raucous clash
several weeks ago. There were no major market-moving surprises.
"The final U.S. presidential debate was less chaotic than the first but
offered little new information to inform the result for markets," Stephen Innes
of Axi said in a commentary. "Meanwhile, discussion relevant to the
post-election economic outlook was limited, particularly from President Trump."
Germany's DAX gained 0.9% to 12,654.60 while the CAC 40 in Paris jumped
1.1%, to 4,904.25. Britain's FTSE 100 gained 1% to 5,843.13 after Japan and the
UK signed a trade agreement to replace the pact with the EU which will no
longer apply after Britain's exit from the bloc.
European shares were lifted by strong corporate earnings reports that helped
make up for weak manufacturing data.
Sharply rising coronavirus caseloads across most of Europe are raising the
likelihood of more disruptions from business shutdowns and other measures to
fight the pandemic.
""Investors are worried about the surge in coronavirus in Europe. France
reported over 40,000 new cases for the first time yesterday. Overall, daily
Covid-19 cases are reaching their record number in Europe," Naeem Aslam of
Avatrade.com said in a commentary.
"The situation is not getting out of control yet, but alarm bells have
started to ring for sure," Aslam said.
In Asian trading, Japan's Nikkei 225 picked up 0.2% to 23,516.59 and the
Hang Seng in Hong Kong added 0.7% to 24,945.08. In Seoul, the Kospi edged 0.2%
higher to 2,360.81.
The Shanghai Composite index slipped 1% to 3,278.00. In Australia, the
S&P/ASX 200 edged 0.1% lower to 6,167.00.
On Wall Street, stocks shook off a wobbly start to end higher, with the S&P
500 closing up 0.5% at 3,453.49 after several earnings reports from big U.S.
companies came in better than analysts had expected.
Pelosi, the House speaker, and Treasury Secretary Steven Mnuchin have been
negotiating daily this week on another dose of stimulus for the economy.
"Help is on the way. It will be bigger, it will be better, it will be safer
and it will be retroactive," Pelosi said.
Markets have been gyrating for weeks as investors gauge the chances of the
Democrats and Republicans striking a deal on more support for the economy. Time
is running out to get something done before the election.
The Dow Jones Industrial Average gained 0.5% to 28,363.66. The Nasdaq
composite added 0.2% to 11,506.01. The Russell 2000 small-cap index climbed
1.7% to 1,630.25.
Part of a stimulus deal might be extra benefits for workers who lost their
jobs due to the pandemic. A report Thursday showed that 787,000 workers applied
for unemployment benefits last week, better than the week before but still
In other trading Friday, the yield on the 10-year Treasury was steady at
0.85% from 0.86% late Thursday. It's still close to its highest level since
U.S. crude oil fell 23 cents to $40.41 per barrel in electronic trading on
the New York Mercantile Exchange. It added 61 cents to $40.64 per barrel on
Thursday. Brent crude, the international standard, gave up 20 cents to $42.26
The U.S. dollar bought 104.70 Japanese yen, down from 104.86 yen late
Thursday. The euro rose to $1.1827 from $1.1820.