By Geoffrey Smith
GossipMantri.com – Stocks are expected to open lower as new hospital admissions hit the United States and New York City shuts down public schools. Data on jobless claims is due, as are two regional Federal Reserve surveys. Turkey dramatically increases rates to stop the lira from falling, while Indonesia pushes them back to a new all-time high. Oil is slipping on reports of dissatisfaction among its members at current production quotas. Here’s what you need to know about the financial markets on Thursday, November 19.
1. The number of viruses is increasing; New York closes schools
The United States has passed the grim milestone of more than 250,000 deaths from Covid-19 as cities and states across the country rally to tighten restrictions on gatherings and economic life to prevent their health systems from falling. be overwhelmed.
The number of people hospitalized with the virus hit a new record of more than 79,000, while the death toll hit its highest since early May.
New York City will be closing its public schools starting today, a measure that, when implemented in the first wave of lockdowns, did more than most to hit economic activity.
There was slightly better news in Europe, where the number of hospitalizations in France fell sharply.
2. Unemployment claims, regional Fed polls due
The surge in Covid-19 cases and the corresponding pressure on the leisure and hospitality sector, in particular, can be reflected in the data for the week, which is expected at 8:30 a.m. ET (1:30 p.m. GMT). Initial demands are expected to remain largely unchanged at 707,000, after registering a post-pandemic low of 709,000 last week.
The Federal Reserve’s monthly business survey is scheduled to be done at the same time, while the Fed’s comes out at 11 a.m. ET.
In between, there will be data on existing home sales for October. These had reached a 14-year high in September, as the pandemic sparked a rush for the suburbs by city dwellers.
3 actions should open lower on Covid concerns
U.S. stock markets are expected to extend Wednesday’s losses when they open later, fearing the current spate of Covid-19 cases could weigh heavily on production in the last quarter of the year.
As of 6:30 a.m. ET, were down 128 points, or 0.4%, while also down 0.4% and down 0.5%, slightly affected by the disappointing outlook given by the chipmaker after the close from Thursday.
Nvidia (NASDAQ 🙂 lived up to expectations with a good quarter driven by demand from data centers and videographers, very much in line with the story that has fueled a big rally in its stock this year. However, questions remain around its planned $ 40 billion acquisition of UK-based ARM Holdings (LON 🙂 from Softbank (OTC :), a deal seen by many as expensive.
4. Do you want interest rates? We have interest rates!
The Central Bank of Turkey has raised its main one-week lending rate by 475 basis points, as its new governor moved to consolidate the world‘s worst performing currency among major emerging markets this year.
The lira, which had fallen to record lows against the dollar in early November, rose 1.0% to 7.693 in response. It had peaked at near 8.58 two weeks ago.
Other central banks, however, have contributed to the recent trend of further policy easing. Indonesia cut its key rate to a new record low. The move pushed the dollar up 0.8% against the rupee, which is still up more than 3% on the month against a generally weak greenback.
The South African Reserve Bank will also announce the results of its latest policy meeting at 8:00 a.m.ET (1:00 p.m. GMT).
5. Oil dips in the middle of UAE chatter
Crude oil prices have slipped again amid fears for the future of global demand as the coronavirus tightens its grip on the northern hemisphere. Besides the United States, Russia also reported a record rate of daily infections, while the death rate reached its highest level since spring in the UK. In Germany, the daily infection rate remained stubbornly above 22,000.
As of 6:30 a.m., U.S. futures were down 1.2% to $ 41.53 per barrel, while futures were down 0.6% to $ 44.08 per barrel.
Market sentiment has not been helped by the UAE’s consideration of abandoning the OPEC + bloc in protest of its low production quota. While the UAE is unlikely to take such a step, reports indicate the depth of their dissatisfaction with the current arrangements and give an indication of the problems that may arise in agreeing on a production policy for 2021. .