Global Markets Advanced on Thursday on Optimism that U.S. Stimulus Talks Are Continuing.

09/10/2020
U.S. Treasury Secretary told Nancy Pelosi that President Donald Trump wants agreement on a comprehensive aid package. The three main U.S. benchmark earlier closed up despite conflicting comments from Trump and Pelosi that whipsawed markets. The Dow notched up 0.43% at the close, with the S&P 500 advancing 0.80% and the tech-heavy Nasdaq bagging 0.50%. Shares in Japan dipped on Friday, while rising in Hong Kong and Australia. Chinese equities advanced as markets reopened after a week-long holiday. The local bourse slipped 0.36% on Thursday at the close to 54,554.85, weighed down by retailers and banks that lost 1.04% and 1.94%respectively. The local currency is 0.50% firmer at 16.5090 to the dollar, flat at 0.06% for the week. We’ looking forward t a positive start at the opening locally, with IG markets up 112 points.

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EQUITY PREVIEW:
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CORPORATE EVENTS:
• Earnings Calls: KST SJ

Global equities are edging back toward last month’s all-time high and are having the best week since the start of July with investors increasingly betting that a Joe Biden victory in the November election and gains by Democrats in Congress will support stocks.
EU/UK/US
European stock markets all closed in the green on Thursday alongside gains for Wall Street on the back of hopes for further fiscal stimulus. The pan-European Stoxx 600 advanced 0.78%, alongside a jump of 0.88% for the German Dax. The FTSE100 gained 0.53%, while the CAC-40 was 0.63% firmer. U.S. initial jobless claims fell from a revised print of 849,000 to 840,000 in the week ended 3 October, shy of expectations for a reading of 825,000. The reading marked the sixth straight week that saw claims hover at around 800,000, indicating a potential slowdown in the US labour market recovery. U.S. stock index futures in positive territory: both the Dow and Nasdaq futures up 0.41%, alongside the S&P 500 futures advancing 0.47% up.

ASIA/COMMODITIES
Asian stock markets followed Wall Street higher on Friday on hopes Washington will provide more aid to the struggling U.S. economy. Benchmarks in Shanghai up 1.71% , Hong Kong 2.33% firmer and Australia flat 0.05%. Tokyo was off 0.3%. Gold was boosted by a weaker dollar, while investors were once again optimistic over the latest U.S. stimulus measures. Gold futures jumped 0.89% to $1,910.25, climbing above the $1.900-mark. The dollar was down on Friday. Oil was down on Friday, ending the week with a breather as a strike in major producer Norway threatens to slash the country’s supply by up to 25%.

Happy Friday. Enjoy Weekend 😉