Por Geoffrey Smith
Investing.com – Chaotic and meaningless presidential “debate”, strong economic data in China and Europe, a review of U.S. second quarter GDP – and Disney and Shell (LON 🙂 cutting thousands of jobs.
Here’s what you need to know about the financial markets on Wednesday, September 30th.
1. Two grumpy old men
Two old men shouted at each other for a few hours in an effort to resolve the question of who is best suited to lead the free world and the world’s largest economy.
By consensus, President Donald Trump has failed to pressure his opponent Joe Biden for the type of gaffes and brain freezes he has done so much on social media in recent weeks, despite interrupting him 73 times (according to the CBS count).
Biden also failed to hit a knockout, but given his leadership in the polls, he is the most likely of the two to settle for an event in which they just canceled each other out.
Investors have learned nothing new about either candidate’s agenda, except to the extent that Trump again had doubts about his willingness to accept defeat, seeming at one point to instruct right-wing militias to “wait” to dispute the outcome.
2. Big job cuts at Disney and Shell
Companies are becoming more ambitious with their cost-cutting plans as North America and Europe prepare for a full Covid-19 winter.
Walt Disney (NYSE 🙂 said it would cut 28,000 jobs at its theme park, retail and cruise operations – many of them part-time – while Anglo-Dutch oil company Royal Dutch Shell (NYSE 🙂 said it would cut up to 9,000 jobs, or 11% of its workforce, to adapt to a sustained period of low oil prices and a possible long-term decline in demand for oil and gas.
Walt Disney’s shares fell 2.4% in the pre-market, while Shell’s shares achieved a modest 0.3% gain, marginally outperforming Europe’s broader market.
3. Shares should open lower; Expected GDP and ADP
US stocks are likely to open lower after a poor sample of American democracy has reminded investors that electoral risk is not reserved for emerging markets, while Disney job cuts point to tougher times for the job market. .
At 8:44 am (Brasília time), it fell 187 points, or 0.7%, while it also dropped 0.6% and it fell 0.7%.
Investors are likely to be looking at the figures for the second quarter and the ADP’s monthly survey of. In addition, the cyber security company Palantir will debut on the market, which has set a reference price of $ 7.25 for its shares, valuing them at around $ 16 billion.
4. Lagarde suggests that the ECB will follow the Fed
Christine Lagarde signaled that the European Central Bank could follow the Federal Reserve in a formal commitment to let inflation run above its traditional 2% target when it completes the review of its monetary policy strategy next year.
Lagarde’s comments came against the backdrop of some better-than-expected high-frequency data: they increased 3.1% in August and the July figures were also revised upwards. The also exceeded expectations with an increase of 2.3% in August, while the German numbers fell modestly, in line with expectations. The fell 0.2% to $ 1.1709.
Activity data from China’s purchasing managers had shown a recovery still intact, but flattening out after a strong recovery over the summer.
5. Oil slips before stock data
Crude oil prices were again testing two-week lows with stock markets responding gloomily to the electoral debate, in the realization that a disputed election result can generate the usual uncertainty that weighs on the markets every four years.
At 8:44 am, futures fell 0.7%, to $ 39.03 a barrel, while the international benchmark fell 0.9% to $ 41.20 a barrel.
Prices failed to rise much with the American Petroleum Institute’s assessment that U.S. oil stocks fell 831,000 barrels last week, instead of the expected 1.4 million barrel increase. The deadline, as usual, is at 11:30 am.