Global stocks mixed ahead of first Trump-Biden debate – National


Global stocks were mixed on Tuesday after the Wall Street rally as investors anticipated a debate between US President Donald Trump and his November election challenger Joe Biden.London and Frankfurt opened lower while Shanghai and Tokyo advanced.

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U.S. equity futures fell a day after the Wall Street S&P 500 benchmark gained 1.6%, boosted by announcements of company acquisitions and gains from big tech stocks.

“It is a welcome joy, but it does not make it possible to buy back the shares of a negative September,” Mizuho Bank said in a report. With no obvious catalyst, its analysts questioned whether the rise was due to little more than “month-end short hedging” or traders buying stocks to meet their commitments to sell them back.

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In early trading, the London FTSE 100 lost 0.9% to 5,876.80 and the Frankfurt DAX lost 0.7% to 12,786.27. The CAC 40 in Paris fell 0.5% to 4,820.42.

On Wall Street, the future of the S&P 500 was down 0.1% and that of the Dow Jones Industrial Average was 0.2%.

On Monday, 90 percent of the S&P 500 shares rose. The index is on track to close in September with a loss of 4.2% after five months of gains.

Amazon climbed 2.5%, Apple 2.4%, and Microsoft 0.8%.

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The Dow Jones Industrial Average gained 1.5 percent. The Nasdaq composite climbed 1.9%.

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Investors were awaiting the 90-minute Trump-Biden televised debate on Tuesday. It comes amid trade tensions with China and rising coronavirus deaths. Tens of millions of Americans are out of work.

Markets are monitoring the impact of the November election on tax policy and how long it will take to determine the winner.

The outcome of the debate is “not necessarily entirely relevant to the market,” ING’s Robert Carnell said in a report.

“With a reasonable poll lead, it could be argued that Joe Biden has more to lose here than President Trump,” Carnell said. He said that with some potential for goofs or other colorful moments, the debate could be “cringe-worthy, but unlikely to cause an electoral car crash for both camps.”

In Asia, the Shanghai Composite Index gained 0.2 percent to 3,224.36 while the Hang Seng in Hong Kong fell 0.8 percent to 23,275.53. The Nikkei 225 in Tokyo edged up 0.1% to 23,539.10.

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Shares of Japanese telecommunications giant NTT Corp. fell 2.7% after reports announced plans to privatize its mobile operator NTT DoCoMo. DoCoMo said it will announce news after a board meeting on Tuesday.

Seoul’s Kospi was up 0.9% to 2327.89 while Sydney’s S & P-ASX 200 was unchanged at 5,952.10.

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The Sensex Indian gained 0.5 percent to 38,167.66. The New Zealand and Southeast Asian markets declined.

Tech stocks led an earlier rebound in global stock prices, but investors began to worry about their overvaluation, leading to another selloff.

Investor confidence has been bolstered by infusions of central bank credit into struggling economies and hopes of developing a vaccine against the coronavirus.

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However, the US Congress is still arguing over the size of a new support program after the expiration of additional unemployment benefits that have helped prop up consumer spending that powers the world’s largest economy.

A monthly unemployment report expected by the government on Friday could help shed light on an economic recovery.

In energy markets, benchmark US crude fell 31 cents per barrel to $ 40.28 in electronic trading on the New York Mercantile Exchange. Brent, used for the price of international oils, fell 32 cents to $ 42.55 a barrel in London.

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The dollar gained 105.60 Japanese yen against 105.51 yen on Monday. The euro went from $ 1.1690 to $ 1.1690.

© 2020 The Canadian Press


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