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The main index of the New York Stock Exchange began on the 23rd as a mixed trend as the negotiations for new US stimulus and corporate performance were observed.
At 10:20 a.m. EDT, the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) was trading at 28,331.82, 31.84 points (0.11%) lower than the battlefield. .
The Standard & Poor’s (S&P) 500 Index traded at 3,457.50, an increase of 4.01 points (0.12%) from the battlefield, while the NASDAQ index oriented to technology stocks traded at 11,484.76, a drop of 21.25 points (0.18%).
The mayor kept an eye on the US stimulus negotiations, key economic indicators, business performance and news related to the presidential elections.
Expectations remain that the US stimulus package will finally be introduced.
The Speaker of the House of Representatives, Nancy Pelosi (the Democratic Party), said that the stimulus agreement was “almost here” the day before.
President Pelosi expressed a reserved opinion on whether the stimulus package could be finalized before the presidential elections, saying it could take some time to draft the bill.
The chairman of the White House National Economic Commission (NEC) Larry Kurdlow also noted in an interview the day before that disagreements over policy persist.
Wall Street experts assessed that even if the stimulus package could not be fully concluded before the presidential election, there is still an expectation that it will finally be released in the near future.
In particular, in the Treasury market, US Treasury yields are showing a marked increase, mainly for long-term bonds.
It is interpreted as a phenomenon that reflects the expectation that the Democratic Party candidate, Joe Biden, will win the US presidential election and that if the Democratic Party dominates Congress, there will be massive stimulus and the economic recovery will also gain momentum.
As long-term interest rates rise, the steep slope of the Treasury yield curve is a representative phenomenon that reflects expectations for economic growth and inflation.
President Donald Trump and candidate Biden held the last television debate before the presidential election the day before.
Even in the last debate, there was no oriental medicine that significantly changed the situation.
Some opinion polls showed candidate Biden was ahead.
Candidate Biden continues to lead recent polls.
Financial markets are also assessing that the scenario in which the Democratic Party dominates both the White House and Congress will be favorable to the financial market.
However, as in the case of the last presidential elections, there is a high possibility that different results will come out from the public opinion polls, and there is much criticism that the victory of the democratic party will eventually be negative for the market due to the tax increase.
Although the third-quarter results of US companies are generally good, they are putting a small load on the market on this day. As Intel’s sales fell short of market expectations, the fact that the share price fell around 10% in the early stage is having a negative impact.
On the other hand, the price of shares of the pharmaceutical company Gilead Sciences has risen approximately 4%.
It received help from the US Food and Drug Administration (FDA) in granting official permission to use remdesivir to treat hospitalized patients with COVID-19.
The economic indicators published that day were good.
The US services industry Purchasing Managers Index (PMI) for October, released by information provider IHS Markit, reached 56.0, the highest in 20 months.
It also beat the market forecast of 55.0.
The manufacturing PMI for October was 53.3, slightly below market expectations, but reached its highest level in the last 21 months.
Experts from the New York stock market expressed their expectations for new stimulus packages.
“The message from the market is that fiscal stimulus is coming, and this will have a positive impact on the US economy,” said Janus Henderson, Paul O’Connor Chief Investor Officer, Multi-Asset. “I bought stocks of local banks in the United States that I could do,” he said.
Stock markets in major European countries are strong.
The pan-European Stoxx 600 Index was up 0.75%.
International oil prices fell.
West Texas Crude Oil (WTI) prices for December moved 0.39% to $ 40.48, 0.39% lower than the previous trading day, while Brent Oil moved 0, 35% at $ 42.31.
(Yonhap News / Photo = Getty Image Korea)
