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Thursday, October 29, 2020, 22:39
S&P 500, Nasdaq rise at open on upbeat data
By Bloomberg
Thursday, October 29, 2020, 22:39 By Bloomberg

SINGAPORE - The S&P 500 and Nasdaq opened higher on Thursday after upbeat economic data allayed some worries about surging coronavirus cases, while technology heavyweights found support ahead of quarterly earnings reports. 

The S&P 500 opened higher by 6.54 points, or 0.20 percent, at 3,277.57 and the Nasdaq Composite gained 59.60 points, or 0.54 percent, to 11,064.47 at the opening bell.

The Dow Jones Industrial Average fell 38.97 points, or 0.15 percent, at the open to 26,480.98.

The US economy grew at an unrivaled pace in the third quarter as the government poured out more than US$3 trillion worth of pandemic relief which fueled consumer spending, but the deep scars from the COVID-19 recession could take a year or more to heal.

US gross domestic product rebounded at a 33.1 percent annualized rate last quarter, the Commerce Department said in its advance estimate on Thursday. That was the fastest pace since the government started keeping records in 1947

Gross domestic product rebounded at a 33.1 percent annualized rate last quarter, the Commerce Department said in its advance estimate on Thursday. That was the fastest pace since the government started keeping records in 1947 and followed a historic shrinkage rate of 31.4 percent in the second quarter.

European stocks recovered slightly on Thursday on the back of strong earnings from oil major Royal Dutch Shell and chip equipment supplier ASM, but sentiment remained fragile a day after lockdown fears sparked a sharp selloff.

The pan-European STOXX 600 index rose 0.3 percent after closing at a five-month low in the previous session, while the German DAX advanced 0.6 percent and UK's FTSE 100 and France's CAC 40 rebounded from multi-month lows.

The European Central Bank left policy unchanged on Thursday, resisting pressure to unveil more stimulus amid a new wave of the pandemic, but provided the clearest hint yet of fresh easing at its next meeting in December.

Asia’s stock markets fell on Thursday. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6 percent, with the heaviest drops in Australia, down 1.6 percent, and South Korea, down 1 percent.

Japan’s Nikkei fell just 0.3 percent, Chinese blue chips rose 0.5 percent and the yuan led a gentle bounce in Asian currencies against the greenback.

“Asia is not really partaking in this second or third wave story because it’s got its COVID largely under control,” said Rob Carnell, chief economist in Asia at Dutch bank ING.

“As a result, domestic economies look reasonable.”

Oil also steadied on Thursday, with Brent futures up 0.2 percent at US$39.20 a barrel, after dropping 5 percent on Wednesday. 

Still, for the week so far the commodity, often regarded as a proxy for global energy demand and growth, is down 6.2 percent and world stocks down 4.7 percent, as the pandemic worsens and a US election looms.

“Until yesterday the market was travelling with the hope the improvement of health care services in dealing with the pandemic would prevent the introduction of severe lockdowns,” National Australia Bank FX strategist Rodrigo Catril said in a note.

“At least in Europe, this dynamic has now changed ... the question now is whether US states will follow.”



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