It is set to be a moderate start to a great earnings week.
US stock futures were down at the start of a week, which will see a number of report results from big names, including Tesla TSLA,
Microsoft MSFT,
and United Airlines UAL,
The race for a coronavirus vaccine has been refocused with test results for Oxford University and AstraZeneca’s AZN,
effort to be published later in the day.
But regardless of the update, an effective vaccine available to the masses is still a long way off, and coronavirus cases continue to rise worldwide, leaving investors to monitor the global recovery.
In our call of the dayBlackRock said Europe has an “advantage” over other regions, including the US and emerging markets, as the global restart accelerates.
BlackRock Investment Institute remained neutral on US equities, citing “the risk of fading fiscal stimulus and electoral uncertainty” and the overweight in European equities after improving the region in its mid-year outlook.
He said European stocks offered the “most attractive regional exposure” to a variable global reopening. An increase in growth would typically benefit emerging markets, he said, but in this case Europe’s strong health infrastructure and policy response left it in a better position.
New cases in Europe, once the epicenter of the virus, have gradually decreased from a peak in April, while infections in Latin America have increased, as shown in the table below.
“Europe’s health capabilities and containment measures position the region well for an internal recovery. European companies are also highly focused on improving world trade and the recovery of the Chinese economy, “said head of global investment strategy Mike Pyle.
“Importantly, monetary and fiscal support to cushion the virus shock is stronger in Europe than in EM countries and Japan, and there is room and appetite for additional stimulus,” added Pyle.
Asian technology-focused countries showed early signs of a rebound in trade and could also benefit, he added.
The graphic
The markets
After rising 2.3% last week in a third consecutive week of earnings, the DIA Jones Industrial DJIA,
The average opened lower on Monday as Dow futures YM00,
they were 0.1% down. S&P 500 ES00 futures,
were 0.2% lower, while Nasdaq NQ00 futures,
were 0.1% higher. European stocks were mixed on Monday as European Union leaders remained stuck in negotiations over the size of the bloc’s coronavirus recovery plan. Euro EURUSD,
it rose to four-month highs as investors expected the 27 EU countries to reach an agreement. Asian markets were also mainly lower overnight.
The buzz
The University of Oxford and British pharmacist AstraZeneca are expected to release test results for their possible coronavirus vaccine on Monday.
GlaxoSmithKline announced that it was betting on German vaccine maker CureVac in the latest move by a drug maker to increase capabilities to fight pandemics.
The UK government said it has secured early access to 90 million doses of two possible vaccines developed by BioNTech BNTX from Germany,
and the American pharmacist Pfizer PFE,
as well as one of the French group Valneva VLA,
Chevron CHV,
has agreed to buy Noble Energy NBL,
in a $ 5 billion all-stock deal, the energy giant said Monday.
United States President Donald Trump confronted Fox News presenter Chris Wallace in an explosive interview on Sunday.
The entertainment company Disney DIS,
has reduced its advertising spending on Facebook FB,
The Wall Street Journal reported, as the tech giant faces a boycott of companies for its handling of hate speech and divisive content.
Confirmed coronavirus deaths worldwide passed 600,000 on Sunday, according to data from Johns Hopkins University, while the World Health Organization reported the highest number of daily new cases of 259,848 on Saturday.
French car maker Renault RNO,
He said that global sales fell in the first half of the year, but reported a recovery in June. It sold 1.26 million vehicles in the first six months of 2020, compared to 1.93 million the year before.
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