Solid economic data supported equity trading in the US. However, the buyers are holding back because of the dwindling prospect of a new Corona aid package. In the end, the last quarter of the year started quietly.
Wall Street ended the first trading day of the final quarter with a slight plus. On the one hand, mostly good US economic data supported the mood, on the other hand, the dwindling hope for a new Corona aid package before the US presidential election at the beginning of November weighed on it. Although the Democrats and Republicans negotiated again, a solution has not yet been found.
Now there is speculation in the market about an "escalation clause", as Marios Hadjikyriacos, investment analyst at XM, said. This would allow both sides to agree on a smaller package, but agree on the possibility of higher expenditure in the event that this becomes necessary. Other observers pointed out that US Treasury Secretary Steven Mnuchin signaled progress in the negotiations.
Of the Dow Jones Index gained 0.1 percent to 27,817 points. The broader one S&P 500 rose by 0.5 percent to 3381 points. The technology-based Nasdaq Composite climbed 1.4 percent to 11,327 points.
Even if the actual reporting season is still a bit long in coming, some companies have already given a foretaste of what could come: So has the beverage and snack company Pepsico Figures published. Sales and earnings in the third fiscal quarter were above analysts' expectations. The share closed with a plus of 1.6 percent.
The figures for the second fiscal quarter of are also better than expected Constellation Brands failed. The manufacturer of alcoholic beverages, known among other things for Corona brand beer, does not dare to look ahead. The stock fell 2.6 percent.
The responded with a plus of 1.4 percent ford-Share on restructuring plans of the auto company. In addition, there were US sales figures, which showed a slight stabilization for the third quarter. At General Motors US sales collapsed in the second quarter by a third percent, in the third quarter the minus was only 10 percent. The group also said that production has largely returned to pre-pandemic levels. General Motors shares rose 2.7 percent.
The good mood among stocks has meanwhile dampened interest in the supposedly safe haven of the US bonds. However, the quotations made up their losses later on. Participants pointed to signs that no agreement could be reached on a new aid package in the US. The ten-year return was down 0.9 basis points to 0.67 percent. Of the dollar, wanted as a safe haven currency in times of crisis, was sold. The dollar index fell 0.2 percent.
Oil prices fell to their lowest level in two weeks. The oversupply was another burden. In addition, there were growing concerns about the global economic recovery. Observers also referred to a Reuters survey, according to which the OPEC countries increased their oil production by 160,000 barrels per day in September. The reasons for this are Libya and Iran, which are excluded from the agreed production reductions. A barrel of the US grade WTI fell 3.9 percent to $ 38.67. Brent fell 3.3 percent to $ 40.90. Of the Gold price was supported by the slightly weakening dollar. The troy ounce regained the $ 1,900 mark and was 1.0 percent higher.
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