US futures are up as of 8:30 am ET this morning on stimulus talks, and this is also helping some markets in Europe, but overall they are mixed. Markets in Asia were mixed overnight, with the NIKKEI +1%, Hang Seng +0.64% and China’s CSI -0.76%. Oil is down slightly as OPEC meets today to discuss weakening demand due to rising Covid-19 cases. Gold is up this morning, trading back over $1,900.
Exchange operator Euronext halted equity trading in several major markets across Europe as they opened this morning, including Paris, Amsterdam and Lisbon. The exchange operator said the issue had affected all Euronext products. The halt in equities began just before 10:00 am in Paris and was not resolved until 12.45 pm. All markets in Europe are now open.
Is this the week of a stimulus package? House Speaker Pelosi has said she is giving the White House 48 hours to come back to her with a new proposal. As this is going on, the Senate is expected to vote on a Republican-sponsored $500 billion stimulus bill on Wednesday, which will include funding for schools, expanded unemployment benefits and a second round of the Paycheck Protection Program. This is not expected to pass.
China reported that its third-quarter GDP grew 4.9% as compared to a year ago, but the figure was below the expectations of 5.2%. Japan’s exports fell 4.9% in September, compared to September 2019, but this was an improvement on August’s 15% drop.
Last week Boeing’s 737 Max was cleared to fly in Europe and now American Airlines said it will begin flying the plane again in the US by the end of the year. The FAA said it has no timeline for approving the plane’s return to service, so there is more to come on this story. Boeing is trading up this morning.
For you market historians, today is the 33rd anniversary of “Black Monday”. For those of you who do not know or remember, on October 19, 1987, both the Dow and S&P 500 lost more than 20% in a single day.
With options expiring on Friday, we saw a nice uptick in overall market volume. SPY trade 89 million shares, its highest volume of the week, but QQQ traded only 40 million shares, slightly below its average.
There were some stock splits at the close of business on Friday, as IVW split 4-1, while IJK, IJS and IJJ split 2-1.
Friday saw sellers of Materials (XLB) and Industrials (XLI), while there were buyers of Consumer Staples (XLP), Utilities (XLU) and financials (XLF).
Last week US-listed ETFs surpassed $350 billion in net new inflows for the year to date. At this time last year, there was only $211 billion in net new inflows.
The Wall Street Journal published a state over the weekend, showing how the S&P 500 (market cap index) is beating the S&P 500 Equal Weight Index by almost 10% year to date. This is its highest amount since 1999.