Stock Futures Drop on Rising Kovid-19, Economic Risk –

Stock Futures Drop on Rising Kovid-19, Economic Risk

US stock futures fell on Thursday, with hopes of stimulus and the possibility of new sanctions across Europe overshadowing the global economic outlook.

According to futures tied at 1.1%, the S&P 500 skid, the benchmark index may retreat for the third consecutive day. Overseas, the Pan-Continental Stakes Europe 600 fell 2.2%, while most of the major Asian benchmarks closed lower.

The US stock market has fallen in a big way this week as investors have assessed risk factors. Uncertainty about the upcoming election and re-off-stimulus talks, as well as the risk of a second wave of coronavirus infection, Kovid-19 vaccines and treatment deadlines, and questions about how companies are leaving the recession season Huh. Investors sat on the spot.

Jim McCormick, the global head of desk strategy at NatWest Markets, said, “The pre-election stimulus program has gone back and forth from too much optimism to too much pessimism.” “And we are seeing a general pessimism about the failures on the vaccine and the deteriorating Kovid situation in Europe.”

The market also reflects investors’ reluctance to place a large bet after the election, when the risk of the election result has been eliminated, Mr. McCormick said.

According to the latest Wall Street Journal / NBC News poll, former Vice President Joe Biden holds an 11-point lead over President Trump for less than three days. Despite Mr Biden’s leadership, uncertainty about a surprise on election night is alerting investors.

“We’re in this holding pattern, where I think the market is realizing that a Democratic sweep is more likely,” Mr. McCormick said. “But due to the experiences of 2016, there is a lot of hesitation in the price of things.”

Weekly unemployed claims data, likely to be released at 8.30 am ET, are likely to show that applications for unemployment benefits remained above pre-epidemic last week, as continued layoffs held back economic recovery. Economists expect the data to show 830,000 Americans filed last week.

Hugh Gimber, global market strategist at JP Morgan Asset Management, said the data would be particularly important, given that Congress is unlikely to send another round to American homes after the election.

The deadlock between the White House and Congress over any additional government spending became more frequent on Wednesday. Treasury Secretary Steven Menuchin downplayed the possibility of pre-election success, and House Speaker Nancy Pelosi said the major disagreement had not yet been resolved.

Those comments dimmed investor expectations and caused the S&P 500 to end down 0.7% on Thursday. Negotiations to continue on Thursday.

Stocks are booming while companies have shed millions of workers from payroll. WSJ explains why the stock market is separated from economic reality in US photo illustration by Carlos Waters / WSJ

“Investors want to see any stimulus before the election as a bonus,” Mr. Gimber said. He said the most pressing question is, “If a Democrat is a clean sweep, can they pass the stimulus package during a lame-duck session at the end of the year, or wait until next year to get it will do ? ”

Investors are also evaluating how major US businesses are moving during the economic downturn. Wall Street giant Morgan Stanley and drugstore-chain Volgren Boots Alliance prepare to report data around 7am

Coronovirus cases are increasing throughout Europe and there is also a weakening of sentiment to prevent the spread of local governments. Sanctions are tightened in many European countries in an attempt to prevent a second wave of cases as hospitals fill.

European nations, including the UK and France, are tightening sanctions in an effort to stem the second wave of Kovid-19 cases.


daniel leal-olivas / Agence France-Presse / Getty Images

On Wednesday, France declared a state of emergency and imposed a one-night curfew for the Paris area and eight other metropolitan areas across the country.

“We have done a simple job of economic recovery, the initial rebound. Before Kovid we are now working hard to bring the economies back to where they were before the lockdown. ”, Said Altaf Kasam, EMEA head of investment strategy and research at State Street Global Advisors. “These rolling lockdowns are going to cover that recovery and make it so difficult,” he said.

Internationally, Brent crude fell 2.3% to $ 42.33 a barrel amid rising concerns about the global economic outlook. Gold fell 0.4%.

The yield on the 10-year Treasury note hit 0.769% Wednesday at 0.698%.

In Asia, Hong Kong’s Hang Seng retreated about 2.1% of the business, while Japan’s Nikkei 225 fell 0.5%.

Write Will Horner at [email protected]

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