Wall Street stocks gained Wednesday on good US economic data and revived stimulus hopes as investors shrugged off a contentious presidential debate between President Donald Trump and former Vice President Joe Biden.

After European equities retreated, US equities mounted a rally following upbeat comments by US Treasury Secretary Steven Mnuchin that reopened the door to a potential stimulus deal with congressional Democrats.

In an interview with CNBC on Wednesday morning, Mnuchin said he was “hopeful” over the talks’ prospects, and that “We’re going to give it one more serious try to get this done.”

“I think there is a reasonable compromise here. It’s something that the president very much wants to get done,” he said.

The gains ebbed somewhat later in the session as talks with House Speaker Nancy Pelosi did not yield a deal. But the two parties said they would keep talking.

“It’s hard to overstate the importance of fiscal and monetary policies in the post-COVID world, and today’s session proved just that yet again,” said Gorilla Trades strategist Ken Berman. “While the passionate presidential debate led to active overnight trading, the real fireworks were triggered by the Treasury Secretary’s stimulus-related words.”

Data showed US private sector hiring jumped by an unexpectedly big 749,000 jobs in September. Pending home sales also topped expectations.

On the negative side, Disney announced layoffs in its US division and thousands of airline workers were at risk of furlough as soon as Thursday with the expiration of a deadline from an earlier US aid bill.

Markets appeared unmoved by the loud and chaotic debate between President Donald Trump and former vice president Joe Biden.

“The market didn’t learn anything it didn’t already know or think about this particular election process,” said Briefing.com analyst Patrick O’Hare.

“To that end, it knows and thinks that

By YURI KAGEYAMA, AP Business Writer

TOKYO (AP) — Asian shares were mixed in muted trading Monday, ahead of the first U.S. presidential debate and a national holiday in China later in the week.

Japan’s benchmark Nikkei 225 rose 1.3% in afternoon trading to 23,511.62, while South Korea’s Kospi added 1.4% to 2,310.85. Australia’s S&P/ASX 200 lost earlier gains to slip 0.2% to 5,952.30. Hong Kong’s Hang Seng index rose 0.8% to 23,429.81, while the Shanghai Composite index inched less than 0.1% lower to 3,216.46.

China is celebrating its National Day and Mid-Autumn festival on Oct. 1, followed by a weeklong holiday through Oct. 8.

China’s statistical bureau reported Sunday that industrial profits rose 19% in August from a year earlier, as the economy recovered from the pandemic downturn.

Regional markets are seeing signs of improvement in economic activity despite the coronavirus pandemic, as businesses strive to achieve a new normal with social distancing and mask-wearing.

Investors are hoping for additional fiscal stimulus measures from the U.S. House Speaker Nancy Pelosi has said she hopes to find common ground for agreement with Treasury Secretary Stephen Mnuchin after the $2.4 trillion package under discussion failed to bridge the divide.

The chamber passed a $3.4 trillion rescue measure in May. Democrats cut their ambitions back by $1 trillion or so, while Senate Republicans have focused on a much smaller package in the $650 billion to $1 trillion range.

Bridging the overall topline gulf would be tough. Working out hundreds of legislative details just before the November election, amid a feud over filling Justice Ruth Bader Ginsburg’s seat on the Supreme Court could be impossible. But there is pressure on both sides to do something to help the economy and the tens of millions of voters left unemployed thanks to the pandemic.

Also

European stock markets fell back Wednesday as investors left the chaotic US presidential debate behind, while strong US jobs data helped the mood on Wall Street.

With the debate out of the way, the markets could switch their focus to more concrete topics, several analysts opined.

In London, investors had to digest data that confirmed Britain’s virus-hit economy collapsed by almost a fifth in the second quarter.

They pushed the FTSE 100 index into negative territory at the close of the day.

In New York, the Dow Jones index was 1.6 percent higher in midday exchanges following the release of positive job numbers in the private sector.

The payroll services firm ADP said that private US employers added 749,000 jobs in September as employment continues to rebound from the economic hit caused by the coronavirus.

Economists view the ADP data as a preview of the monthly Labor Department employment report due Friday that encompasses both private and government hiring.

ADP said that private-sector hiring was seen in businesses of all sizes, with services accounting for most of it.

“Traders are likely to key on economic data more than political developments, with the focus shifting to Friday’s highly-anticipated Non-Farm Payrolls report sooner rather than later,” noted Matt Weller, head of market research at GAIN Capital.

“The (US) jobs report on Friday will be very interesting, particularly against the backdrop of an exhaustive battle in Congress over the next instalment of critical economic aid,” agreed Craig Erlam, an analyst at the online brokerage Oanda.

Markets were encouraged by news that US Democratic House Speaker Nancy Pelosi had spoken for a second straight day with Treasury Secretary Steven Mnuchin over a much-anticipated stimulus package to rescue the battered US economy.

The pair have agreed to continue negotiating.

Earlier in the day, a Chinese

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Share prices in Europe and Asia were mostly lower on Wednesday after the debate between President Donald Trump and his Democratic challenger Joe Biden.

There was scant sign the clash did much to sway investors. Shares fell in Paris, Frankfurt and Tokyo on Wednesday, while upbeat manufacturing data lifted shares in Hong Kong and Shanghai.

Investors remain cautious with COVID-19 infections on the rise again in the U.S. and elsewhere. The Trump-Biden debate occurred as coronavirus deaths worldwide have surpassed 1 million. Many millions of people worldwide are jobless.


Germany’s DAX fell 0.6% to 12,755.33 and the CAC 40 in Paris lost 0.4% to 4,813.99. The FTSE 100 in Britain edged 0.1% lower to 5,889.73. U.S. futures skidded, with the contract for the S&P 500 down 0.8% and that for the Dow industrials falling 0.9%.



A survey of Chinese manufacturers, t he Caixin manufacturing purchasing manager’s index, showed economic activity accelerating further in September as businesses recovered from the downturn earlier this year due to the pandemic.

The Caixin manufacturing PMI

The first presidential debate between Donald Trump and Joe Biden took place last night. It was an acrimonious, chaotic, and insulting debate.

Presidential Debate: Trump Vs. Biden

The global stock market has become even more concerned following this debate, and investors are largely ignoring all other major fundamentals, such as the worsening coronavirus situation in Europe and strong economic numbers out of China.

The U.S. futures moved higher during the debate as investors saw Joe Biden displaying his strong position against Donald Trump, but the Dow Jones took a complete U-turn after the debate because investors believe that if Trump losses the election, the transition of power is not going to be smooth.

The presidential debate reinforced the market concerns that Trump isn’t going to accept his defeat that easily. This creates the biggest risk for not only the U.S. stock market rally, but we are seeing the global stock market take a nose-dive today.

 

Stock Market Today

Over in Asia, the stock market closed in negative territory. The Shanghai index declined by 0.20%. The Nikkei stock index also moved lower by 1.50%, while the Korean Kospi soared 0.86%. Hong Kong’s HSI Index increased by 1.02%. 

 

Coronavirus Update

The coronavirus situation continues to deteriorate over in Europe as new cases are surging. The total global number of Covid-19 cases is now