(RTTNews) – Stocks are likely to move to the upside in early trading on Monday, adding to the strong gains posted last week. The major index futures are pointing to a higher open for the markets, although the Dow futures are up a relatively modest 71 points compared to more than 220-point jump by the Nasdaq futures.

The markets may continue to benefit from optimism about a new stimulus bill even though House Speaker Nancy Pelosi said talks will “remain at an impasse” until “serious issues” with the Trump administration’s latest proposal are resolved.

The White House has increased its offer to $1.8 billion in its latest proposal, but Pelosi still called the administration’s proposed bill “grossly inadequate.”

“The news is filled with the numbers in terms of dollars. The heart of the matter is: can we allow the virus to rage on and ignore science as the Administration proposes, or will they accept the scientific strategic plan in the Heroes Act to crush the virus,” Pelosi said in a letter to her Democratic colleagues.

“We have other differences in terms of who benefits from the spending,” she added. “But in terms of addressing testing, tracing and treatment, what the Trump Administration has offered is wholly insufficient.”

Meanwhile, Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows sent a letter to members of the House and Senate accusing Democrats of refusing to compromise on bipartisan legislation.

“It is not just about the top-line number but also about legislation that can be passed by both the House and the Senate and signed into law by President Trump to help the American people,” Mnuchin and Meadows wrote.

Mnuchin and Meadows urged Congress to vote on a bill allowing the administration to spend unused Paycheck Protection Program funds while negotiations

(Bloomberg) — The offshore yuan tumbled the most in almost seven months after China’s central bank took steps to restrain the currency’s rally.

Loading...

Load Error

The exchange rate slumped as much as 1.03% against the dollar in late Hong Kong trade on Monday. Declines steepened without an obvious trigger just before the 4:30 p.m. official close of the onshore rate, which helps determine the next day’s reference rate. The drop may mark the start of a period of consolidation after recent gains, strategists said.

The People’s Bank of China on Saturday scrapped a two-year rule that made it expensive to bet against the yuan after the currency surged to its highest in 18 months. The PBOC had in recent weeks refrained from sending clear signals on the yuan, reinforcing speculation that policy makers looking to boost consumption at home wanted a stronger yuan.

But as gains accelerated, it appears officials grew concerned the currency risked becoming a one-way bet. Reasons to buy the yuan were many. Polls showing Democrat Joe Biden may win the election. Failed U.S. stimulus talks driving the dollar lower. An attractive yield gap over Treasuries. An upcoming Communist Party plenum this month where stimulus measures are expected to be announced.

“China is just taking preemptive action to keep the yuan steady as the U.S. election could add even more appreciation pressure,” said Ken Cheung, chief Asia currency strategist at Mizuho Bank Ltd. “The yuan will be anchored for the time being — we see it trading in a 6.7-6.8 range in the near term.”



chart: PBOC acts to restrain bullish bets on the yuan


© Bloomberg
PBOC acts to restrain bullish bets on the yuan

The offshore rate was down almost 0.9% at 6.745 at 7:06 p.m., while on the onshore yuan last traded at 6.749.

The late slump may have been driven by short covering.

By Tom Westbrook



a group of people walking down the street: FILE PHOTO: Passersby wearing protective face masks walk past a screen displaying Nikkei share average and world stock indexes, amid the coronavirus disease (COVID-19) outbreak, in Tokyo


© Reuters/ISSEI KATO
FILE PHOTO: Passersby wearing protective face masks walk past a screen displaying Nikkei share average and world stock indexes, amid the coronavirus disease (COVID-19) outbreak, in Tokyo

SINGAPORE (Reuters) – Chinese stocks led Asian markets higher on Monday as investors bet on a steady recovery for the world’s no. 2 economy, though caution about the fate of U.S. stimulus kept the dollar firm and a central bank policy tweak unwound some of the yuan’s gains.

Loading...

Load Error

MSCI’s broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> rose 0.8% to 2-1/2-year highs, buoyed by a 2% gain in Chinese blue chips <.csi300> and a 1.5% rise by Hong Kong’s Hang Seng index <.hsi>. Japan’s Nikkei <.n225> slipped 0.3% as investors fretted about corporate earnings. [.T]

“If capital is moving on relative growth rates, then China is looking quite attractive,” said Chris Weston, head of research brokerage Pepperstone in Melbourne. Equities are cheap, yields advantageous and the outlook solid, he said.

“From a virus perspective as well, we’re seeing concerns in Europe, while China is considered a quasi-safe haven.”

China has returned from an eight day Mid-Autumn festival with investors encouraged by a robust rebound in tourism and ebbing coronavirus cases.

Qingdao city said on Monday it will conduct COVID-19 tests for the entire population of more than 9 million people over five days after small number of new cases.

Elsewhere, in the U.S. midwest, infections are at record levels and the World Health Organization is urging fresh curbs for Europe.

Video: Potential US stimulus deal could impact global markets (ABC NEWS)

Potential US stimulus deal could impact global markets

UP NEXT

UP NEXT

Coronavirus aid plans in the United States are also in disarray, with the Trump administration on Sunday calling on Congress to pass a stripped-down

(RTTNews) – The China stock market returned from its long National Day holiday to the upside on Friday, after finishing lower in four of five sessions before the break. The Shanghai Composite Index now sits just above the 3,270-point plateau and it’s got a positive lead again for Monday’s trade.

The global forecast for the Asian markets is cautiously optimistic, with optimism for stimulus tempered by weakness from the oil markets. The European and U.S. bourses were up and the Asian markets are tipped to open in similar fashion.

The SCI finished sharply higher on Friday following gains from the properties and oil and insurance companies, while the financials were mixed.

For the day, the index spiked 54.02 points or 1.68 percent to finish at 3,272.08 after trading between 3,260.19 and 3,280.51. The Shenzhen Composite Index surged 66.42 points or 3.09 percent to end at 2,215.96.

Among the actives, Industrial and Commercial Bank of China fell 0.20 percent, while Bank of China collected 0.31 percent, China Construction Bank eased 0.16 percent, China Merchants Bank added 0.50 percent, Bank of Communications rose 0.22 percent, China Life Insurance advanced 0.95 percent, Ping An Insurance surged 2.15 percent, PetroChina gained 0.49 percent, China Petroleum and Chemical (Sinopec) increased 0.51 percent, China Shenhua Energy climbed 0.61 percent, Gemdale was up 0.21 percent, Poly Developments jumped 1.07 percent, China Vanke improved 0.04 percent and Beijing Capital Development spiked 1.64 percent.

The lead from Wall Street is solid as stocks opened higher on Friday and remained in the green throughout the session to finish higher for the third straight day.

The Dow climbed 161.40 points or 0.57 percent to finish at 28,586.90, while the NASDAQ spiked 158.94 points or 1.39 percent to end at 11,579.94 and the S&P 500 jumped 30.30 points or 0.88 percent to

(Reuters) – European stocks posted a second consecutive week of gains on Friday as bumper forecasts from Denmark’s Pandora and Novo Nordisk set a brighter tone for the earnings season, while investors kept an eye out for signs of fresh U.S. stimulus.

The STOXX 600 index <.STOXX> ended up 0.6% to close the week with a gain of 2.1%.

Global equities advanced this week as growing expectations the Democratic party will win U.S. elections next month revived hopes for more economic stimulus there.

In Europe, a string of mergers and acquisitions as well as a rebound in beaten-down sectors like travel & leisure <.SXTP>, banks <.SX7E> and oil & gas <.SXEP> lifted regional markets.

Shares of aircraft engine maker Rolls Royce

have almost doubled in value since Monday, while British Airways owner-IAG

jumped 13.2%.

Jewellery maker Pandora rose 17.2% to the top of STOXX 600 on Friday after hiking its profit guidance on stronger sales and a big boost to its online business.

Drugmaker Novo Nordisk

gained 3.3% after raising its 2020 sales and operating outlook.

German online fashion company Zalando

rose 3.2% and Global Fashion Group

surged 24.0% after upgrading their earnings outlook.

Companies on the STOXX 600 are expected to post a profit decline of 38% in third quarter and 22.7% in the current quarter, according to Refinitiv data, as businesses recoup from the coronavirus-driven hit.

“Even though we’ve had rising infection rates in developed markets for the best part of the month, there hasn’t been any negative impact on consensus earnings forecasts,” said Alastair George, head strategist at Edison Investment Research.

“As long as strict lockdowns can be avoided, equities are likely to continue to make progress on the back of very loose monetary policy and global stimulus packages as well.”

Europe surpassed 100,000 daily reported COVID-19