Plenty for investors to think about today as stocks attempt to hold on to the strong gains made on Monday. The first U.S. presidential debate takes place today between Donald Trump and Joe Biden, Democrats are putting forward a new $2.2 trillion stimulus proposal and the UK and the EU are still struggling to make convincing progress in the Withdrawal Agreement negotiations.
- TThe Federal Reserve Bank of Dallas’ general business activity index for manufacturing in Texas increased 5.6 points from the previous month to +13.6 in September 2020, the highest since November 2018, as activity continues to recover from the coronavirus shock. The production index, a key measure of state manufacturing conditions, increased 9.2 points to +22.3, its highest reading in two years. Other measures of manufacturing activity pointed to above-average growth: new orders (up 4.9 points to +14.7); growth rate of orders (up 1.4 points to +13.2); capacity utilization (up 6.6 points to 17.5). The shipments index dropped 1.8 points to +21.5. Labor market measures indicated stronger employment growth and a continued increase in workweek length.
- On Monday: European stocks closed sharply higher, led largely by gains in the bank shares, and on fairly good performance by stocks from several other sectors, as investors indulged in some brisk buying right through the session. US stocks moved sharply higher during trading, extending the strong upward move seen in the previous session. The major averages all climbed firmly into positive territory amid broad based strength on Wall Street.
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