Tech Stocks Drop as Trump Virus Test Fuels Swings

US stocks slumped in volatile trading as investors weighed the implications of President Donald Trump’s positive test for the coronavirus along with renewed efforts to forge agreement on fiscal stimulus. The S&P 500 rose by 0.96% to 3,348.44 while Dow Jones was up 134.09 points (0.48%) to 27,682.81.

Trump Presses for Stimulus Deal, Saying ‘get It Done’

President Donald Trump pressed for a deal on another round of pandemic aid to jolt the US economic recovery, saying the country “wants and needs” fiscal stimulus. With Trump receiving treatment at Walter Reed military hospital outside Washington after testing positive for the coronavirus, his tweet departed from his health to focus on weeks of partisan deadlock over another stimulus bill.

Jobs Slowdown Points to Shaky US Recovery Without Vaccine, Aid

US employment figures for September showed an economic recovery that’s becoming increasingly shaky without a Covid-19 vaccine or fresh government aid. The weakerthan-forecast headline gain in payrolls left the US 10.7 million jobs shy of February’s total, and Friday’s report evinced other troubling trends: People who permanently lost a job hit a seven-year high.

ECB Inflation Risks Mount as Prices Drop More Than Forecast

Consumer prices in the 19-nation euro area fell more than economists forecast in September, keeping up pressure on the European Central Bank as it debates whether to add stimulus to support the recovery from the coronavirus recession. The inflation rate came in at -0.3%, slightly below the median estimate in a Bloomberg survey. Prices for services were a particular drag in September, with some food and energy also cheaper than during the previous month. Core inflation fell to a record-low 0.2%.

Canada’s Recovery, Already Slowing, Faces Second-wave Roadblock

Canada’s already slowing economic recovery risks losing further momentum, according to a set of high-frequency indicators. Alternative data from credit card transactions, restaurant bookings and job postings show the economy fell into a more uneven pace of growth in September after the initial strong summer rebound. With virus cases rising and provinces tightening restrictions, the path to a full recovery faces major obstacles.

Indonesia Jobs Bill Gets Parliamentary Backing, Antara Reports

An Indonesian parliamentary body approved the latest version of an omnibus bill on jobs that the government says will boost investment and revive an economy battered by the pandemic. The bill will be submitted to a plenary session after all but two parties agreed to it, state news agency Antara cited Supratman Andi Agtas, chairman of parliament’s legislative body, as saying.

Hong Kong to Issue Up to US$1.9bn of Inflation-linked Bonds

Hong Kong plans to issue as much as 13bn yuan (US$1.9bn) of inflation-linked bonds to encourage residents to take part in the city’s financial development, according to Financial Secretary Paul Chan. The government issued about HK$60bn (US$7.7 bn) of inflation-linked so-called iBonds from 2011 to 2016, Chan said.

Oil Edges Up From Three-week Low as Trump’s Outlook Improves

Oil inched higher in New York as President Donald Trump’s doctors gave an upbeat assessment of his health even as labor market weakness heightened concerns over an economic recovery. Brent crude for December settlement rose US$0.08 to US$39.35 per barrel.

Source: Affin Hwang Research - 5 Oct 2020