Last Friday, the contamination of several members of the American administration, including the President himself, led financial markets to evolve according to Donald Trump’s health briefings, less than a month before a presidential election that was already shaping up to be one of the most unusual in the country’s history.
On Friday, Wall Street reacted badly to the contamination of Donald Trump, because investors saw it as an additional destabilizing factor in view of an election that is already full of them. Between contradicting statement on the real state of health of the American President, hospitalization, video interventions and POTUS’ short car ride out of the hospital on Sunday to greet the supporters gathered there, investors did not know where to stand. But promises of Trump’s return to the White House today boosted markets.
Meanwhile, Joe Biden is increasing its lead over Donald Trump in the polls, according to the The Wall Street Journal and NBC News. This means that the results of the November elections could be more clear-cut than expected. The heated televised debate between Trump and Biden seems to have finally benefited the challenger. This week will by the « vice-presidents’ debate », between Kamala Harris and Mike Pence.
In addition to this debate, investors will also be watching several speeches by central bankers this week, including Christine Lagarde and Jerome Powell on Tuesday, as well as the publication on Wednesday of the minutes of the last Fed meeting. They also hope that the Democrats and Republicans will agree on a new support plan, after rather constructive comments from both sides.
Meanwhile, fresh data shows that 662,000 new jobs were created outside the agricultural sector in September, while the consensus was for 900,000 new jobs. Nevertheless, the unemployment rate fell from 0.5% to 7.9% and is better than expected at 8.2%. According to data from the University of Michigan, economic sentiment rose to 80.4, up from 78.9 in August.
The final PMI indices for services and composites for September are published throughout the day. In the United States, the services ISM is also on the agenda.
Donald Trump, Wall Street, Stock, Thomson Reuters Corporation, Dow Jones Industrial Average
Actu monde – CA – TODAY ON WALL STREET: Reports of Donald Trump’s improving health boost markets