U.S. Equity Futures Slip After Chaotic Presidential Debate

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U.S. stock index futures fell alongside most stock markets after an acrimonious U.S. presidential debate highlighted the risk of a contested vote in November. The dollar has fluctuated.S&P 500 contracts fell 1.3% in the hours following the chaotic fight between Donald Trump and Democratic hopeful Joe Biden in which the president suggested that postal voting could be riddled with fraud. Futures, as well as those of the Nasdaq 100, have recovered more than half of their tumbles. Declines in the shares of industrial goods and technology have outpaced the progress of utilities in European markets.

“What we’ve seen from the debate is the reinforcement that if Biden wins, Trump won’t agree to this,” said Chris Weston, head of research at Pepperstone Group Ltd. in Melbourne. “The people positioned for an ugly contest afterwards were validated.”

Investment firms also recalibrated their positions on the last day of this quarter, with traders saying flows were positive for the dollar. Various tech stocks fell in pre-commercialization alongside Walt Disney Co., which said 28,000 workers would be made redundant as part of its declining resort business in the United States. This marks one of the most significant downsizing of the Covid-19 era.

Global investors are keeping tabs on coronavirus vaccine news and discussions in Washington for a new stimulus package that is expected to reach critical juncture this week. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke Tuesday morning for 50 minutes and are expected to speak again on Wednesday.

Traders are preparing for Eurozone inflation data on Friday. Headline CPI readings below zero came for France and Germany and put the euro on Wednesday by increasing the likelihood of further easing from the European Central Bank. ECB officials speak Wednesday.

Earlier in Asia, local stocks and bonds of the China Evergrande group soared after the developer took a major step to avert a cash crunch that threatened to rock the $ 50 trillion financial system and rocket spill over into global markets.

Chinese markets are closed from Thursday for a week’s holiday. South Korea is closed on Wednesday. The fairness gauges in Japan and Australia have fallen by at least 2%.

Here are some key upcoming events:

  • A large number of ECB officials, including President Christine Lagarde, speak Wednesday at the ECB and its conference of observers.
  • The EIA’s crude oil inventory report comes out Wednesday.
  • September’s US employment report on Friday will be the last before the November election.

Here are the main movements in the markets:

Stocks

  • Futures contracts on the S&P 500 index fell 0.3 percent as of 6:45 a.m. New York time.
  • Futures contracts on the Nasdaq 100 index fell 0.4%.
  • The Stoxx Europe 600 index was little changed.
  • The MSCI Asia Pacific Index fell 0.6%.

Devises

  • The Bloomberg Dollar Spot Index was little changed.
  • The British pound was little changed at US $ 1.2857.
  • The Swiss franc was little changed at 1.0799 per euro.
  • The offshore yuan strengthened 0.1% to 6.81 per dollar.

Obligations

  • The yield on 10-year Treasury bills rose less than a basis point to 0.65%.
  • Germany’s 10-year yield climbed one basis point to -0.54 percent.
  • Britain’s 10-year yield rose one basis point to 0.198 percent.
  • New Zealand’s 10-year yield climbed five basis points to 0.519 percent.

Basic products

  • West Texas Intermediate crude fell 0.6 percent to US $ 39.06 per barrel.
  • Gold fell 0.5% to US $ 1,887.86 an ounce.
  • Natural gas fell 2.3 percent to US $ 2.50 per mmbtu.
  • Iron ore jumped 3.6 percent to US $ 121.05 per metric tonne.

– With the help of Adam Haigh and Vassilis Karamanis.



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