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Progress in negotiations on the US bailout plan remains stalled, along with the rapid deterioration of the European epidemic, market concerns have revived, the Dow Jones Industrial Average fell more than 300 points or 1.2% at the opening on Thursday (15), and the S&P 500 index fell 1.3%. The Stark index fell 1.6% and the rate fell almost 2%.
The European epidemic worsens
The recent rapid increase in confirmed cases in Europe has forced the leaders of all countries to take more steps to stop the spread of the virus. French President Emmanuel Macron announced on Wednesday (14) that a four-week curfew will be imposed in 9 major cities, including Paris, starting at midnight on Saturday (17), affecting almost a third of the country’s population.
In addition, the governments of Germany and Italy announced the tightening of anti-epidemic restrictions, the latter announced that it will force people to wear masks, including foreign public places, and will extend the national emergency until January 31 next year.
As for the UK, which announced the launch of a three-tier epidemic alert system earlier this week, foreign media reports noted that due to the continued rise in new cases, the British government plans to include the capital, London. , as a “high” alert level area.
According to data from Johns Hopkins University, on Wednesday (14), the number of confirmed cases in France reached 22,119, the United Kingdom reached 19,751 cases, Italy reached 7,332 cases and Germany reached 7,173 cases.
Progress of the US rescue plan
The Speaker of the House of Representatives of the United States, Nancy Pelosi, and the Secretary of the Treasury, Steven Mnuchin, still did not reach a rescue agreement on Wednesday (14) and the discussions continued on Thursday.
Pelosi’s spokesman, Drew Hammill, tweeted that the negotiations between the two sides were “fruitful” but believed the White House still lacked the understanding necessary to formulate strategic plans for countries with the epidemic.
Menuchin believes that in terms of progress and differences in the current negotiations, a new bailout plan is unlikely to appear before the elections, but also stressed that negotiations with Pelosi will continue.
Economic dataThe U.S. Department of Labor announced Thursday that it had received unemployment benefits for the first time last week (10/10), which unexpectedly rose to nearly 900,000 people, scoring the highest since late August, intensifying the market concerns over the stagnant economic recovery.
At 21 o’clock on Thursday (15) Taipei time:
- The Dow Jones Index fell 329.99 points, or -1.16%, temporarily to 28,184.01 points.
- Nasdaq fell 190.10 points or -1.62% to 11,578.63 points temporarily
- The S&P 500 Index fell 45.03 points or -1.29%, temporarily to 3443.64 points
- Rates and a half fell 48.03 points-1.99%, temporarily reported 2369.17 points
- TSMC ADR falls 1.35% to $ 87.40 per share
- Yield on 10-year US Treasuries fell to 0.701%
- New York light crude oil fell 3.63% to $ 39.55 a barrel
- Brent crude oil fell 3.30% to $ 41.89 a barrel
- Gold fell 0.47% to $ 1,898.40 an ounce
- The US dollar index rose 0.52% to 93.855 points
Focus actions:
Morgan Stanley (MS-US) fell 1.22% in early trading to $ 50.03.
Key figures from the third quarter 2020 earnings report:
- Revenue: US $ 11.66 billion, an annual increase of 16%, better than Refinitiv’s US $ 10.64 billion
- Net profit: $ 2.717 million, an annual increase of 25%
- Diluted earnings per share (EPS): US $ 1.66, higher than the US $ 1.27 for the same period last year, and better than the US $ 1.28 expected by Refinitiv
- Return on equity (ROE): 13.2%, up from 11.2% in the same period last year
- Stock trading income: $ 2,262 million, an annual increase of 14%, better than Refinitiv’s forecast of $ 2,190 million
- Fixed Income Business Income: $ 1.924 billion, an annual increase of 35%, better than the $ 1.59 billion expected by Refinitiv.
Alcoa (AA-US) fell 11.23% to US $ 11.54 in early trading.
Key figures from the third quarter 2020 earnings report:
- Revenues: $ 2.365 million, a 7.9% annual decrease
- Adjusted net loss: $ 218 million, compared to $ 82 million in the same period last year
- Adjusted net loss per share (LPS): $ 1.17, better than Zacks’ expectation of $ 1.51, and net loss per share of $ 0.44 in the same period last year.
United Airlines (LAU-US) fell 2.44% in early operations to $ 34.74.
Key figures from the third quarter 2020 earnings report:
- Revenue: US $ 2.49 billion, a 78% annual decrease, Refinitiv expects US $ 2.5 billion
- Adjusted net loss: US $ 1.84 billion and a net gain of US $ 1.024 billion in the same period last year
- Net loss per share (LPS): $ 8.16, which is less than Refinitiv’s expected net loss per share of $ 7.53
- Average daily cash consumption: $ 21 million, down from $ 37 million in the prior quarter
Daily key economic data:
- The United States last week (10/10) reported 898,000 unemployment benefits, with an expectation of 825,000. The previous value rose from 840,000 to 845,000.
- The United States reported last week (3/10) 10,018 million unemployment benefits, which are expected to be 10.55 million. The previous value rose from 10,976 million to 11,183 million
- New York Fed October Manufacturing Index reported 10.5, expected 12, previous value 17
- The Philadelphia Fed’s October Manufacturing Index reported 32.3, expected 14.5, previous value 15
- At 23:00 Taipei time, the rise and fall of EIA crude inventories will be announced last week, the previous value of which was -501,000 barrels.
Wall Street Analysis:
Mike Zigmont, head of trade and research at Harvest Volatility Management, said: “Last week’s optimism took off like a rocket and receded this week.” He believes that as a large, macro event, the impact of the rescue plan has been reflected. Among the stock prices, there are only questions about when the details will be announced and when the measures will take effect.
The US Department of Labor announced pre-market unemployment benefits claim data last week. The number of initial beneficiaries increased to 898,000 from the previous value of 840,000.
Derek Halpenny, MUFG’s head of research, said: “The data shows that economic activity in the fourth quarter will be more impacted. We need to adjust market prices to some extent.”
Art Hogan, market strategist at National Securities, said: “Like a roller coaster, the market seems to be looking for clues mainly from stalled relief plans. At the same time, it worries that if the stimulus measures are not successful after elections, corporate earnings in the next quarter Could not get support.
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