Oct 26, 2020
As Coronavirus Cases Rise in the U.S. and Europe The Asian Markets Were Muted.
The resurgence of cases and death due to the rise of COVID-19 especially in the U.S. and Europe and the implications for trade, tourism, and economic activity due to the pandemic.
On Monday the Asian shares were a little changed in muted trading amidst the uncertainty over the U.S. presidential election will cause the markets and economic policy to the world market.
Stocks fell in Singapore. Australia’s S&P/ASX 200 XJO, -0.18% was about flat, and Markets in Hong Kong and Malaysia were closed for holidays. However, Japan's Nikkei 225 NIK, -0.09% slipped 0.1%, while the Shanghai Composite SHCOMP, -1.13% retreated 0.7% and the smaller-cap Shenzhen Composite 399106, +0.06% rose 0.4%. South Korea’s Kospi 180721, -0.69% declined 0.3%. Benchmark indexes in Taiwan Y9999, +0.07%, and Indonesia JAKIDX, +0.71% gained.
According to a market strategist with IG in Singapore, Jingyi Pan, “Asia markets remain to pace the floor awaiting the U.S. presidential election passage, commencing with muted moves going into the start of the week.”
A familiar pattern was recently observed, as traders keep an eye on negotiations between Republican and Democratic leaders in Washington over more economic aid. The U.S. stock indexes closed mostly higher last week. They bounced between small gains and losses.
Nancy Pelosi The House Speaker on Sunday has said she’s not giving up on passing another coronavirus relief economic package before the Nov. 3 election. She also said that she sent a list of concerns to the Trump administration and was told that she would get a response on Monday.
A restart bonus unemployment benefits, fund additional testing and vaccines, provide aid to schools and allocate money to state and local governments, a Democratic priority, another $1,200 is at issue is a huge virus relief bill that would send direct payment to most Americans, this is to help them in this pandemic.
On Friday, the U.S. reported a record 83,757 newly confirmed cases. Another 83,718 new cases were reported on Saturday. One major concern is that if the election’s outcome is uncertain, that would further delay help for the economy as mounting numbers of coronavirus cases raise the likelihood of further disruptions for businesses and the economy.
The S&P 500 SPX, +0.34% rose 0.3% to 3,465.39, its second straight gain. The Dow Jones Industrial Average DJIA, -0.09% dropped 0.1%, to 28,335.57. The Nasdaq Composite COMP, +0.36%, which is heavily weighted with technology stocks, gained 0.4% to 11,548.28. This all happened on Friday amidst the resurging cases and the rise of deaths due to the COVID-19 Virus.
Economic Calendar Highlights
Germany Ifo Business Climate Index: 10:00am
The German Ifo Business Climate Index rates the current German business climate and measures expectations for the next six months. It is a composite index based on a survey of manufacturers, builders, wholesalers and retailers. The index is compiled by the Ifo Institute for Economic Research.
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
U.S. New Home Sales: 3:00pm
New Home Sales measures the annualized number of new single-family homes that were sold during the previous month. This report tends to have more impact when it's released ahead of Existing Home Sales because the reports are tightly correlated.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.