Daily summary: Global stocks rise despite stimulus uncertainty

 

European indices finished the session higher, with both DAX 30 and CAC40 gained 0.9% and FTSE 100 added 0.5%. The ECB's minutes from September’s meeting showed that central bank is ready to take further action to support Europe's economic recovery and inflation amid the COVID-19 crisis, with measures including lowering interest rates deeper into negative territory.  On the data front Germany’s exports and imports rose firmly in August. However surging number of new COVID-19 cases weighed on market sentiment. France reported a new record number of new daily infections, with hospitalizations also going up. President Emmanuel Macron already warned that his government will announce more restrictions. Italy reported 3,677 new coronavirus infections on Wednesday, the most in more than 5 months and made it mandatory to wear face masks in outdoor spaces. However government  is expected to approve stricter anti-virus measures.

 

US stocks started the day in positive moods after President Donald Trump said that the administration and Democrats were “starting to have some very productive talks.” However indices erased some of the earlier gains after House Speaker Nancy Pelosi rejected the idea of a potential smaller airline aid package unless a comprehensive COVID-19 stimulus bill is approved. Meanwhile Donald Trump refused to participate in virtual debate which was supposed to take place on 15th October as this format announced by the Commission on Presidential Debates is not acceptable to him. On the data front, initial jobless claims figure came above market expectations at 840 thousand in the latest week, following an upwardly revised 849 thousand in the week before. Recent uncertainties regarding the stimulus talks seem to overshadow the fact that coronavirus is resurging in many parts of the US. Wisconsin,  Montana and both Dakotas witnessed rising number of  hospitalizations in recent days.

WTI crude rose more than 2.5% to trade around $40.90 a barrel and Brent gained 2.6% to trade around $43.09 a barrel as energy companies evacuated 183 offshore oil platforms and halt nearly 1.5 million barrels per day of output as Hurricane Delta heads toward the US Gulf Coast. Also strike of the Norwegian workers’ over pay supported higher prices. Norway’s Lederne labour union decided to expand its ongoing oil strike from October 10th unless agreement will be reached in the meantime. Elsewhere, spot gold jumped to $1,890 an ounce on Thursday, extending previous session gains while silver is trading near the $24 an ounce.