News / Analysis
Finance Update – A Day to TradeNovember 3, 2020
Americas – America Votes
With America voting, US indices started the week nicely, the DOW adding 1.6% and the NASDAQ 0.4%.
The dollar reacted weakly to a 1-tick increase in Markit’s manufacturing PMI but ISM’s 4-point increase to a staggering 59.3.
Europe – Europe manufacturing excels
European indices are capturing the voting spirit, all indices closing green yesterday led by Poland’s WIG20’s 2.65% rise.
The Dax stopped just short of the 2% mark, and the FTSE added an unassuming 1.39%. Manufacturing PMIs yesterday all surprised to the upside.
Asia – BoA Drops rates
Asian indices this morning were led up by the Hang Seng’s 2.2% increase.
The Australian dollar is showing some backwind after the nation’s central bank – as expected – dropped interestThe cost of accessing money not owned. rates by 15 basis points to 0.1%, Governor Lowe mentioning better-than-expected economic data but the threat of continued high unemployment.
Commodities – WTI hoping for OPEC+
WTI yesterday briefly dropped beneath $34 before shaking it off and quickly soaring to above $37 per barrel on hopes of an extended production agreement between Russia and OPEC+.
Gold arrested a 3-day rise yesterday hitting 1900 before regressing to 1889, as the IMF officially advised the G20 to keep supporting individuals, businesses and the healthcare sector. Previously, the IMF threatened a 4.4% global drop in GDP, which would not recover before 2022.
Corporate – Aramco profits plummet
PayPal yesterday reported an amazing 121% increase in earnings to 86c per share on a 25% increase in revenues YoY to $5.46 bn. ARAMCO (+0.88%) this morning reported a 44.6% drop in quarterly profits at $11.79 bn. In Europe, Bayer reported a 5% drop in sales YoY to €8.5 bn, and NBP Paribas’ net income fell 2.3% to €1.89 bn.
Still ahead today, earnings reports from Crédit Agricol, Exelon, Ferrari, Pandora, Jyske Bank, Humana, Prudential Financial, Fox and Eaton.
|01:55 PM GMT||US||Redbook Index, business & economic sentiment at 2:45, factory orders at 3, vehicle sales at 9:30 and elections throughout the day.|
|08:30 PM GMT||OIL||API Weekly Crude Oil Inventories|
|09:30 PM GMT||Australia||Construction index. Composite & services PMIs at 10, and retail sales at 0:30 AM (+1)|
|09:45 PM GMT||NZ||Unemployment, participation & labour cost.|
|01:45 AM GMTGreenwich Mean Time (usually equals UTC – Universal Coordinated Time). GMT is a time zone, while U... (+1)||China||Services PMI|
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