U.S. indices fall despite Stimulus hope
Indices in the U.S. opened lower on Monday, as House Speaker Nancy Pelosi gave the Trump administration 48 hours to agree to an aid package.
The Speaker is said to want a reconciliation of all outstanding disputes on the coronavirus stimulus package, in the hopes of passing a bill before the upcoming election.
As of writing, the Dow Jones was down 1.26%, the S&P 500 declined by 1.02%, whilst the Nasdaq was nearing a 0.6% decline.
Drops came, as the global total of COVID-19 cases reached 40 million.
China’s economy grows in Q3
With many of the world’s economies contracting as a result of the coronavirus outbreak, China today announced that its own economy grew 4.9% in the third quarter of 2020.
Data released by the Chinese National Bureau of Statistics showed that third-quarter GDP grew close to 4.9%, which is up from a year ago. Although numbers are positive they are lower than what analysts had expected, with many forecasting an increase of 5.2%.
A statement which accompanied the report read that, “The economy is still in the process of recovery and the foundation for sustained recovery needs to be consolidated.”
The Hang Seng was up 0.64%, whilst the Shanghai Composite fell 0.71%.
IMF gloom on Oil prices
The IMF today delivered a pessimistic outlook of the oil market, as the head of the funds’ Middle-eastern division forecasted the impact on COVID-19 on the MENA region.
Jihad Azour, who acts as director of this region stated that, “The projections for oil prices are in the corridor between $40 to $45 for … early next year and will be between $40 to $50”.
He went on to add that, “It will be important to watch the recovery in demand. That proved to be an important factor in what we saw this year, in addition to the supply that could come from alternative energies.”
Crude currently trades at $41 per barrel.
Quote of the day – “I don’t think you can get to be a really good investor over a broad range without doing a massive amount of reading. I don’t think any one book will do it for you.”Charlie Munger
To stay up to date with the markets we encourage traders to view our Trade Gate Hub for more real time insights into Crude, Gold and many other markets.
Senior Market Analyst