Bel20 awaits lower opening after Trump’s positive corona test

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(ABM FN) The Brussels stock exchange is expected to start lower on Friday. Futures on the Euro Stoxx 50 index showed a loss of approximately 1 percent an hour before the gong.

US President Donald Trump and his wife Melania have tested positive for the corona virus. Trump himself announced this on Twitter on Friday morning.

Earlier last night it was announced that Trump and his wife were going into quarantine, because adviser Hope Hicks tested positive for the corona virus on Friday. A few hours after this message, Trump himself reported being infected with the virus.

“Tonight his Flotus [Melania] and I tested positive for Covid-19. We will go into quarantine and immediately begin the recovery process, “Trump said on Twitter.” We’ll work it out together! “

US futures are trading lower after the news and in Asia, where the Chinese stock markets are closed due to a holiday, the main indices are also losing ground following the Trump news. Sydney and Tokyo, which was closed on Thursday due to a technical failure, lose roughly 1 percent.

On Thursday, the Bel20 was still narrowly in the green at 3,236.79 points. Sentiment was positively impacted by hopes of agreement on a new US bailout package to support the US economy. According to CMC Markets market analyst David Madden, Democratic House Leader Nancy Pelosi sounded fairly hopeful on Thursday about the chances of a new bailout package, and that gave investors a boost.

On Wall Street, main indicator S&P 500 closed 0.5 percent higher on Thursday, while tech exchange Nasdaq even gained 1.4 percent.

On Thursday evening, the House of Representatives then indeed approved a bailout package worth $ 2.2 trillion, or $ 2,200 billion. However, it is expected that necessary support from the Republican-dominated Senate will not be forthcoming. Senate Republican Majority Leader Mitch McConnell emphasized that the amount of the bailout package is financially irresponsible and that Republicans will only agree to a much smaller bailout package.

Democratic House Speaker Nancy Pelosi, meanwhile, remains in talks with Treasury Secretary Steven Mnuchin about new aid measures.

It may be the Democrats’ last attempt to get a bailout package through before preparing for the upcoming presidential election in November.

In addition, it was announced on Thursday that the number of new weekly support applications for unemployment benefits in the US reached 837,000 last week. That was a decrease of 36,000 applications compared to the week before. Consulted economists predicted an increase to 850,000 new applications in advance. Wednesday, a better than expected report from pay slip processor ADP was also released.

Both figures serve as precursors to the official US jobs report for September released this afternoon at 2:30 p.m., which is considered the world’s most important macro data. In August there was still a job growth of 1.4 million and a decrease in unemployment to 8.4 percent, while economists had expected an increase to 9.8 percent.

Economists now expect, on average, a further fall in unemployment in September to 8.2 percent and a job growth of 875,000.

The oil price fell 3.8 percent in New York on Thursday to $ 38.71. According to Price Futures analyst Phil Flynn, markets continue to be concerned about oil demand as corona cases continue to rise globally. In the meantime, oil stocks are declining. On Wednesday, the Energy Information Administration reported that US oil stocks had fallen for the third straight week.

Nevertheless, the developments surrounding the virus outbreak are currently weighing more heavily, because investors fear that new lockdown measures in, for example, Europe will lead to a less strong demand for oil.

The dollar was stable against the euro this morning. The currency pair was quoted at 1.1730. A real response to Trump’s corona news on the currency markets is therefore not yet necessary.

In addition to the jobs report, investors today also have an eye for an inflation rate from the eurozone and US factory orders. The purchasing managers’ indices for the services sector are on the agenda on Monday.

Company news

Groupe Bruxelles Lambert announced on Thursday that its subsidiary Oliver Capital will issue approximately 450 million euros in convertible bonds that can be exchanged for shares in GEA Group.

Retail Estates saw rental income recover to the level before the corona crisis in the past quarter.

Aedifica took over a residential care center in Schelle, Belgium from Vivalto Home for 14 million euros.

UCB wants Stefan Oschmann to join the board. Evelyn du Monceau will have to step down as chairman of the board by April 2021, as she will have reached the age limit.

Closing positions Wall Street

The S&P 500 closed 0.5 percent in green on Thursday at 3,380.80 points and the Dow Jones index rose a modest 0.1 percent at 27,816.90 points. The Nasdaq ended 1.4 percent in the plus on a close of 11,326.51 points.

ABMFNABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.

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