Shouty Old Men, ADP and PIB, big cuts; What’s New in the Markets Wednesday By


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By Geoffrey Smith – A chaotic and largely meaningless presidential “debate”, strong economic data in China and Europe, a revision of US GDP in Q2 – and Disney and Shell (LON 🙂 have cut thousands of jobs. Here’s what you need to know about the financial markets on Wednesday, September 30e.

1. Two screaming old men

Two old men yelled at each other for a few hours trying to sort out the question of who is best placed to run the free world and the world‘s largest economy.

By mutual agreement, President Donald Trump has failed to pressure his opponent Joe Biden in the kind of blunders and brain freezes he’s done so much on social media in recent weeks, although he interrupted him 73 times (according to CBS tally).

Biden also failed to land any knockouts, but, given his lead in the polls, he’s the more likely of the two to be happy with an event in which they simply canceled each other out.

Investors haven’t learned anything new about either candidate’s agenda, except to the extent Trump once again stoked doubts about his willingness to accept defeat, appearing at one point. to order the right-wing militias to “stand by” to challenge the result.

2. Significant job cuts at Disney, Shell

Businesses are getting more urgent and ambitious with their cost cutting plans as North America and Europe brace for a full winter of Covid-19.

Walt Disney (NYSE 🙂 has said it will cut 28,000 jobs at its theme parks, retail and cruise lines – many of them part-time – while Anglo-Dutch oil major Royal Dutch Shell (NYSE: ) announced the loss of 9,000 jobs. , or 11% of its workforce, to make it fit for a prolonged period of low oil prices and a possible long-term decline in demand for oil and gas.

Walt Disney shares fell 2.4% pre-release, while Shell shares registered a modest gain of 0.3%, slightly outperforming the market as a whole in Europe.

3 stocks ready to open lower; GDP, ADP (NASDAQ 🙂 watched

U.S. stocks are set to open lower after bad publicity for U.S. democracy reminded investors that election risk isn’t just for emerging markets, while job cuts at Disney signaled tougher times for the work market.

As of 6:25 a.m. ET (10:25 a.m. GMT), were down 231 points, or 0.8%, while also being down 0.7% and down 0.8%.

Investors should take inspiration from the revised second quarter data and ADP’s monthly survey later on. In addition, there will be the market debut of cybersecurity firm Palantir, which has set a benchmark price of $ 7.25 for its stock, valuing it at around $ 16 billion.

4. Lagarde suggests that the ECB will follow the Fed

Christine Lagarde has signaled that the European Central Bank may follow the Federal Reserve in a formal commitment to let inflation exceed its traditional 2% target when it completes its review of its monetary policy strategy next year.

Lagarde’s comments came amid better-than-expected high-frequency data: a 3.1% rise in August and July’s figures were also revised upwards. also exceeded expectations with an increase of 2.3% in August, while German figures declined slightly, in line with expectations. The decline of 0.2% to $ 1.1709.

Data from purchasing officials in China earlier had shown a recovery still intact, but stabilized after a strong rebound throughout the summer.

5. Oil slips ahead of inventory data

Crude oil prices were testing two-week lows again as stock markets reacted sadly to the electoral debate, over the perception that a contested election result could remove the usual uncertainty that plagues markets every four years .

As of 6:25 a.m. ET, futures were down 1.2% to $ 38.84 a barrel, while the international benchmark was down 1.3% to $ 41.01 a barrel.

Prices had not really improved by the American Petroleum Institute’s assessment that US crude inventories fell by 831,000 barrels last week, rather than the expected 1.4 million barrels increase. are due, as usual, at 10:30 a.m. ET.


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