This week, the portfolio had to use backup parachutes, and it was using its first parachute in the market in March. Global stocks mostly held their position on Thursday, thanks to ECB stimulus and GDP announcements after three consecutive days of losses. Earlier in the day, IG Chief Market Analyst Chris Beaushan said:
“We’ve been calming down in the market again today. Ahead of the major day of central bank news, GDP figures and, of course, a one-night reversal of stock markets ahead of the barrage of revenue reporting. It remains to be seen whether this is enough to stem the avalanche of sales that has dominated this week.”
In fact, ECB chief Christine Lagarde has shown that central banks will continue their stimulus packages by expanding their bond buying programme in December as Europe prepares for a “very negative” November following the announcement of lockdowns in France and Germany.
In the US, a 33.1%-31.4% contraction in Q2, which is better than the 33.1% Q3 GDP rebound, is enough to boost confidence in investors, and hides the pain that the average American has felt.
The answer is pretty flat in that these updates leave global stocks ahead of the presidential election. As Beauchan said:
“Investors have witnessed a tremendous reset of stocks over the past few days, which portends another sellout like February and March (the return of lockdowns that provide support for the virus and the idea).
“But with a few days left until the election, it is unlikely that there will be many bargain hunters shopping on this side of the weekend.
At the end of the trading, eurozone stocks rose slightly, with DAX rising 0.26% to 11,590, and CAC rising 0.070% to 4,574 points. Similarly, Dow Jones has grown by 0.40% to date to 26,626 points, but was shy at the 28,800 point level seen a few weeks ago.
Unfortunately, despite the hilarious company data, the FTSE fell on the wrong side of the fence.
“There were many great company updates this morning in the FTSE 100, but perhaps “so bad” is a better explanation of the third quarter figures for Lloyds, Shell, BT and others,” adds Beauchan.
You cannot be saved by Lloyds (LON:LLOY). Reporting profits of £1 billion and a stock price rise of over 2%, the FTSE 100 slid just below its starting location. FTSE, which had risen about 30 points at one point, fell 0.019% to 5,581 points.
