With coronavirus cases surging and little progress in US stimulus negotiations or Brexit talks, stocks were down on Thursday. US stocks moved sharply lower in early trading, but showed a significant recovery attempt over the course of the session. Markets in the UK and Europe have opened higher this morning. Investors are monitoring developments on Brexit after the EU told the UK it must make concessions a move the UK has called “disappointing”.
- Confirmed coronavirus cases in the United States closed in on eight million with Wisconsin and other states in the US Midwest facing record rises in infections as we approach the flu season and the winter months. The global coronavirus pandemic has now infected more than 38 million people and claimed over 1 million lives.
- Wall Street closed in the red for a third session, as fiscal uncertainty continues and the second coronavirus wave in Europe intensifies. Treasury Secretary Steven Mnuchin said that the White House won’t let differences over funding targets for coronavirus testing detail aid negotiations. Meanwhile, France declared a public health emergency and the United Kingdom extended lockdowns. On the corporate side, United Airlines posted a $1.8 billion net lost, dragged by the pandemic slump. On the data front, 898 thousand American workers filled for jobless benefits last week, well above market expectations of 830 thousand.
- The FTSE 100 lost more than 100 points or 1.7% to close at 5,833,its lowest level since September 24th, as concerns about the economic impact of new coronavirus restrictions across Europe mounted. Stocks were also pressured by ex-dividend trading, with business supplies distributor Bunzl and Britain’s biggest retailer Tesco falling as they traded without dividend.
- On Thursday: European stocks closed sharply lower as investors pressed sales across the board amid fading hopes of a U.S. stimulus before the presidential election, and fresh lockdown restrictions across Europe due to spikes in cornavirus infections. In the US the major averages climbed well off their worst levels of the day but still ended the day in negative territory. Early selling pressure was also generated in reaction to a Labor Department report showing an unexpected increase in first-time claims for U.S. unemployment benefits in the week ended October 10th.
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