US stock futures moved ahead of the first debate between President Trump and former Vice President Joe Biden ahead of the November presidential election.
Futures tied to the S&P 500 ticked below 0.1%, suggesting stocks would struggle for traction after New York’s opening. The broader market index closed 1.6% on Monday, rising for the third straight day.
Gresham House Asset Management CEO Tony Dalwood said, “People will read into the debate to answer questions about whether the election results are accepted by both sides.” “If there is any uncertainty around it, it will create instability.”
Investors are now continuing to assess prospects for new additional spending to support the government.
The House Democrats released a $ 2.2 trillion-bill for the coronavirus-relief package on Monday evening. House Speaker Nancy Pelosi is likely to speak to Treasury Secretary Steven Menuchin about it on Tuesday morning. Analysts said the Congress’ focus has been on the selection of a new judge of the Supreme Court.
“A combination of the situation with the Supreme Court, and Democrats not getting ready to hand Trump a major financial stimulus just before the election, it is quite unlikely that we will pass anything,” Sebastian, a multiset fund manager at Inestesco McKay said. .
Investors are also awaiting the gauge of US consumer confidence from the conference board, which will be at 10.00 AM ET. Consumer spending is the biggest driver of economic growth in America. The latest data may provide some insight into the stability of recovery in the absence of more government support.
Overseas, the Pan-Continental Stakes Europe 600 declined by 0.3% as cases of coronovirus continued to increase, increasing the risk of more stringent measures being initiated by governments in the region. The UK’s FTSE 250 index slipped 0.9% to be the worst performer in Europe, as investors became increasingly nervous about Brexit negotiations.
In Asia, the major stocks were closely mixed with benchmark trading. The Shanghai Composite Index slipped 0.2% and Hong Kong’s Hang Seng Index slipped 0.9%.
The dollar weakened in recent times, exacerbating its decline. The WSJ Dollar Index, which measures the dollar against a basket of currencies, hit a low of 0.2% in about a week.
In bond markets, the yield on the 10-year Treasury fell from 0.661% to 0.650% on Monday.
Mr. Trump said that Abbott Laboratories’ stock likely increased in New York after the drug company sent 150 million rapid coronovirus tests conducted in the US.
Write Anna Hirtenstein at [email protected]
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