The news that moves the stock markets and ADRs
Initial jobless claims are due today, stimulus talks stall, and a vaccine warning for the markets. AUGUST 7,2020
by Trading ADR team on 08/07/20
Labor
Market
Before the much-anticipated payroll
data, the
economists expect another week of
disappointing statements. The median
estimate from Bloomberg surveyed is 1.4 million new claims that have been
filed, with ongoing claims dropping slightly , the data will be released at
8:30 a.m. ET.
Employment
report may show a 1.5 million increase in nonfarm payrolls in July, but
forecasts vary from a decrease of 600,000 to a gain of 3.2 million.
Deadline for Talks. Time is
quickly running out until the legislators' self-imposed deadline to reach a new
stimulus agreement before the end of the week, and both parties are apparently
no closer to reaching an agreement.
Treasury Secretary Steven Mnuchin said
it would be difficult to achieve a plan without "an agreement on the main
issues" after meeting with top Democrats yesterday. White House Chief of Staff Mark Meadows said
President Donald Trump was prepared to use executive authority to extend some
measures, such as supplemental unemployment insurance.
Vaccine
Warning
Goldman Sachs Group Inc. has warned
that a successful coronavirus vaccine could disrupt the markets, leading to a
sell-off in bonds and a turnover in tech stocks.
A vaccine could be approved in late
November this year, analysts wrote, meaning it could lead to disruptive rotations
just as investors are taking in the results of the
American elections.
Virus
News
Germany recorded the highest number of
new cases in more than three months, cases in the Philippines increased and
California threatened to cut power to households that host them at home.
Trump
Twitter Inc. and Facebook Inc. blocked
a video shared by accounts linked to President Trump for violating his policies
on misinformation about the coronavirus.
·
Mixed Markets
Global equity investors are reacting to
another slew of gains as they await news of a stimulus package from Washington.
·
Overnight, the MSCI Asia Pacific index added 0.2%, while
Japan's Topix index closed 0.3% lower.
In Europe, the Stoxx 600 Index was 0.5% lower at 5:50 a.m. as both
Glencore Plc and ITV Plc announced that they were abandoning their dividends.
·
S&P 500 futures pointed to a slightly higher open,
the 10-year Treasury yield was at 0.531% and gold was close to $ 2,050 an
ounce.
