Equities slip, bonds rise ahead of U.S. presidential debate

By David Randall NEW YORK (Reuters) - Global equity benchmarks slid and government bonds inched higher Tuesday as investors remained hesitant ahead of the first U.S. presidential debate and watched for progress in talks for further fiscal stimulus in Washington. With time running out to change minds or influence undecided voters, the stakes are high as the main two White House candidates take the stage tonight, five weeks before the Nov

Reuters September 30, 2020 03:05:35 IST
Equities slip, bonds rise ahead of U.S. presidential debate

Equities slip bonds rise ahead of US presidential debate

By David Randall

NEW YORK (Reuters) - Global equity benchmarks slid and government bonds inched higher Tuesday as investors remained hesitant ahead of the first U.S. presidential debate and watched for progress in talks for further fiscal stimulus in Washington.

With time running out to change minds or influence undecided voters, the stakes are high as the main two White House candidates take the stage tonight, five weeks before the Nov. 3 election.

Former Vice President Joe Biden's campaign has seized on a fresh line of attack ahead of the debate with President Donald Trump that is set for Tuesday night, accusing the Republican incumbent of gaming the system to avoid paying his fair share of taxes.

Many see a Biden victory increasing the chances of further fiscal stimulus to counter the economic damage from the COVID-19 pandemic, judging such a scenario a boon for stocks.

"What seems clear is that were you to see a blue wave, a Democratic sweep, you'd see substantial fiscal stimulus," said Mike Bell, global market strategist at J.P. Morgan Asset Management. "The risk, I have always thought, to this recovery is premature fiscal tightening."

"Tonight's debate will be critical, since it represents one of the last set-piece opportunities for either candidate to change the contours of the race," Deutsche Bank analysts wrote in a note.

MSCI's gauge of stocks across the globe <.MIWD00000PUS> shed 0.24% following broad declines in Europe and Asia. Among the European sectors in negative territory were growth-sensitive banks <.SX7P>, automakers <.SXAP> and travel & leisure <.SXTP>.

On Wall Street, the Dow Jones Industrial Average <.DJI> fell 132.32 points, or 0.48%, to 27,451.74, the S&P 500 <.SPX> lost 16.17 points, or 0.48%, to 3,335.43 and the Nasdaq Composite <.IXIC> dropped 32.28 points, or 0.29%, to 11,085.25.

As the global death toll from COVID-19 rose past 1 million, according to a Reuters tally, investors have remained focused on prospects for a stimulus package to help the U.S. economy recover from the damage wrought by the virus.

U.S. House of Representatives Speaker Nancy Pelosi said on Monday that Democratic lawmakers had unveiled a new, $2.2 trillion coronavirus relief bill. Pelosi in recent days has said she thinks a deal can be reached with the White House on a new coronavirus relief package and that talks were continuing.

Stimulus packages were also in focus in bond markets, where Germany's 10-year bond yield fell to its lowest in seven weeks before first-estimate inflation readings for September.

U.S. benchmark 10-year notes rose 5/32 in price to yield 0.6479%, from 0.663% late on Monday.

The dollar index <=USD> fell 0.27%, with the euro up 0.62% to $1.1736.

Oil prices sank as investors remained hesitant to take on risk.

U.S. crude fell 4.01% to $38.97 per barrel and Brent was at $40.83, down 3.77% on the day.

(Reporting by David Randall; Editing by Alistair Bell and Chizu Nomiyama)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Oil rises 2% as OPEC complies with production cuts
Business

Oil rises 2% as OPEC complies with production cuts

By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000
Business

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000

By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen
World

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen

By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son