MarketDeal24.Com – Here are five things to keep in mind in the financial market on Monday, 19th October:
China continues to recover economically as the world’s only major economy. According to official data released the night before, the gross domestic product grew by 2.7% in the third quarter, up from 4.9% a year earlier.
Although GDP growth slowed this quarter to 11.6% in the three months ended June, China’s GDP was expected to grow by 3.2%. Yet retail sales and industrial production rose the most in September since the epidemic began.
The political drama over the US incentive package continues, with House Speaker Nancy Pelosi saying she is still optimistic that an agreement on the stimulus package could be reached before the November 3 election.
Pelosi has set a deadline of Tuesday afternoon for the deal, but he has not clarified what will happen next.
Senate Majority Leader Mitch McConnell said the GOP-controlled chamber would vote on the matter, which would avoid the plan of House Democrats, where they are considering giving money to local government.
President Trump is 9 points behind Joe Biden in a recent poll, although he has expressed support for a bigger incentive package than Pelosi.
The US stock market is going to start the day on an upward trend. Investors are seeing some hope because of the deadline set by Nancy Pelosi.
At 6:25 a.m. Eastern time, the Dow 30 futures gained 169 points, or 0.7%, while the S&P 500 futures gained 0.8% and the Nasdaq futures gained 1.0%.
Sterling has traded above $1.30 in hopes of a Brexit deal between the United Kingdom and the European Union. The next Brexit transaction expires on December 31st.
The British government has raised fears of a new bill that would violate the agreement and impede imports and exports of goods across the Irish border. The European Union is seeking more concessions from Britain on fishing.
Representatives of the European Union will arrive in London this week to discuss. But Boris Johnson said the talks would not work if the EU remained steadfast in its position.
OPEC and its allies will hold talks in Vienna on whether to reduce oil supplies to world markets under their current agreement.
The company is hopeful of meeting its target of producing 2 million barrels of oil a day from the beginning of next year. At present, 7 million barrels of oil are produced in one day.
U.S. Crude traded down 0.8% at $40.7 per barrel and Brent traded down 0.8% at $42.75 per barrel.