Mandatory Parent Guidance Stickers are caught up in Monday’s Global Equity Movement. Because during elections, company data, and COVID uncertainty, it was a pure horror show.
Global stocks were barely uplifted in elections
Taking the boots just a week after the US election, Global Equity is engaging in fear that the priced Biden lead is slowly but surely taken away.
Early on, and with a 12% poll lead in the Biden campaign, Team Trump reduced the consensus voting margin to 9%.
National GE:
48% (+1)
Biden 47%@rasmussen_poll,lv,10/21-25https://t.co/okfy9js3zj
– Politics polls (@politics_polls) October 26, 2020
Now, certainly, Rasmussen is Trump’s favourite pollster, and they may be trying to make Trump’s lead manifest in their existence, but data like these may be enough to shake up the confidence of investors who have previously relied on Biden’s victory. Speaking about market preferences for election outcomes, Kingswood CIO Rupert Thompson said:
“The market’s favorable outcome appears to be for a clean sweep by Democrats that allows for the implementation of substantial fiscal stimulus. In contrast, if there was a divisional control of the presidency and Congress, this effectively leads to a continuation of the status quo with the divided government, resulting in major constraints on new policies. But the worst is the close and contested outcome, probably due to the prospect of several weeks of rancor and confusion.”
Company data is expected to be positive, but disappointing preparations may add to Monday’s shortcomings
Another factor in weighing global stocks is to expect data from blue chip companies to be made public in the week. And while much of this revenue data is expected to have a positive tone, pricing with positive results creates the possibility of disappointment, and that kind of jitter could be amplified by other concerns on Monday.
Companies that plan to publish performance data this week include American Big Tech Cabal, including Microsoft, Amazon, Apple, Alphabet, and Facebook. Additionally, there will be a Q3 GDP read on Thursday, on top of which is commented by Connor Campbell from Spreadex Financial Analyst.
“At least, that’s positive and analysts should forecast growth of 32% at the annual rate, compared to a 31.4% contraction in Q2.”
It’s nothing more than a COVID genocide
The third final factor in the weight of global equity performance on Monday is the ongoing COVID update. As case numbers are expanding rapidly across Europe, stock losses were led by Germany, with SAP falling about 22% and DAX falling 3.43% on Monday. IG analyst Joshua Mahony adds:
“Germany’s focus is also highlighted by the latest IFO business environment figures, and the survey is falling for the first time since the height of the April crisis.”
Following the German fall, France’s CAC has dropped by 1.50%, cases reaching “record highs,” with Spain entering an emergency, with FTSE being cut by 0.97% in FTSE. Mahony adds:
“We’re looking at countries trying to curb the spread of the virus through more localized and interim restrictions, but it appears that if we don’t reverse the track, we’ll likely see a nationwide lockdown in the end.”
Although there may be further restrictions, hope will prevail when the Covid vaccine is developed early next year. However, these hopes were not enough to help eurozone stocks settle down. Dow Jones opened over 2.50% and provided a slow gut shot.
