Daily summary: US stocks mixed as stimulus saga continues

 

European indices finished today's session higher thanks to upbeat earnings from carmakers and banks. Daimler AG lifted its full-year guidance and posted better-than expected quarterly figures while Renault is expecting positive cash flow from cars by the end of this year. Barclays reported that its consumer businesses made some profits and provisions against bad loans fell in the third quarter. Meanwhile, pandemic situation is getting worse - new record of almost 480 thousand new cases was reported on Thursday of which 200,000 cases have been reported in Europe.  On the economic data front, PMI figures showed Eurozone's private sector activity fell back into contraction territory last month due to sharp deterioration in the service sector. During today's session DAX 30 rose 0.8%, CAC40 added 1% and FTSE100 finished 1.3% higher.

US indices erased earlier gains and are trading lower as investors remain concerned about the progress of the stimulus bill negotiations. While House Speaker Nancy Pelosi remains optimistic that a stimulus can be reached, she also admitted that it may take a while for legislation to be written and signed. Meanwhile President Trump said today, that he does not want the aid deal to bail out Democratic states, according to Reuters. Mnuchin also reportedly said there are still “significant differences” between the two sides. On the corporate front, Intel's stock plunged over 10% on mixed quarterly results. On the data front flash Markit PMI data pointed out that US economy is slowly recovering. Investors also welcomed the fact that Gilead Sciences’ antiviral drug remdesivir was approved by the US Food and Drug Administration as a treatment for COVID-19 after the country reported more than 71,600 new cases on Thursday, nearing record highs set in July, according to Johns Hopkins University data.

 

U.S. crude futures fell 2.10%, while the international benchmark Brent contract dropped 1.95 %   as investors remain concerned that evergrowing number of  new COVID-19 cases will hurt fuel demand recovery. President Vladimir Putin announced yesterday that he was prepared to extend supply cuts as pandemic is surging in the US and Europe. Meanwhile Libya announced it could double its production levels within next 4 weeks, increasing concerns on the supply side. Elsewhere, gold futures are trading nearly flat at $1,903/oz, while silver is trading 0.66% lower around $24.58/oz.