The Monday Market Minute
- Global stocks rally as China markets roar, investors extend stimulus bets heading into the U.S. earnings season.
- Around 31 companies will report this week, including the country’s biggest banks, with analysts expecting third quarter profits to fall 21% from last year.
- Apple unveils is new line-up of 5G phones on Tuesday, the same day that Amazon will launch its annual ‘Prime Day’ shopping event.
- President Trump renews call for stimulus deal, but confusion grips talks as both sides play politics 22 days ahead of the November elections.
- Europe records 100,000 daily coronavirus cases, the highest tally since the pandemic began, in what is likely to be an omen for a second U.S. wave as domestic weather cools.
- U.S. equity futures suggest a firmer open on Wall Street, following its best five-day stretch since August, ahead of big bank earnings and key consumer sentiment events in the week ahead.
U.S. equity futures edged higher Monday, while global stocks rallied and oil prices fell, as investors braced for a critical week ahead that could define the market’s direction heading into the final months of the year.
With Wall Street still looking for clarity on stimulus heading into the teeth of the third quarter earnings season, as well as a series of events that will gauge the strength of the U.S. consumer, stocks are holding onto solid October gains, with the Dow Jones Industrial Average creeping into positive territory for the year on Friday.
However, Europe’s recent coronavirus surge, which has lead to a record high 100,000 daily cases across the Continent Sunday, serves as a reminder that the U.S. economy is almost certain to face a similar ‘second wave’ as the domestic weather cools in the coming weeks.
Without stimulus from Washington — which appears as deadlocked and