Global Stocks edge higher against all odds
- 7th October 2020
- Posted by: Hakeem
- Category: Stock
Global Stocks edged higher at London’s trading session on Wednesday as impressive earnings reports from Germany’s Dialog Semiconductor and UK’s Tesco stopped the selling pressure noticed earlier on the cancellation of the U.S stimulus deal.
What we know; S&P 500 futures were last up 0.54%, Dow 30 futures up 0.64% with Euro STOXX 50 futures up 0.88% at 9.55 am GMT
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4% higher to a fresh two-week peak, led by a 1.3% gain in Australia where an expansionary budget lifted stocks.
However, Stephen Innes, Chief Global Market Strategist at Axi in a note to Bigwig FX spoke on the implication of President’s Trump action by saying;
“President Trump put a halt to the stimulus talks, effectively pin pricking the stimulus balloon. And with no fiscal honey balloon to float the market, the laws of gravity took over. Global stock markets fell back to earth as traders turned their focus on the latest warning from Federal Reserve Chair Jerome Powell that without more funding, the economy is in deep trouble.”
Asian stocks and U.S. futures also rebounded from a significant amount of losses after U.S. President Trump on Tuesday momentarily called off talks with the opposition party over COVID-19 relief legislation until after the U.S Presidential election.
At the time of writing, Dialog Semiconductor soared to about 5.4% to the top of STOXX 600 after it forecast better-than-expected revenue in Q3.
Britain’s largest supermarket chain Tesco also recorded impressive gains as it reported a surge in sales and forecast full-year retail operating profit to be at least the same level as 2019-20