US markets have seen a huge boost in the wake of last week’s selloff. But investors will remain cautious ahead of the US Election 2020 debates between US President Donald Trump and Joe Biden. Hong Kong’s Hang Seng index was up 0.2 percent while Chinese shares opened higher with the blue-chip CSI 300 index up 0.41 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.39 percent to 555.01. Asian markets have been boosted by positive signs around China’s economic recovery. However, the coronavirus pandemic continues to wreak economic havoc globally and raise concern about high valuations.
Investors will remain cautious ahead of the first US presidential debate later in the day and as lawmakers continue efforts to cobble together additional economic stimulus.
Upcoming US economic data should help show how well the country is positioned to rebound from pandemic lockdowns, and how necessary more stimulus will be.
“Globally, a loss of momentum and the renewed rise in COVID-19 infection rates points to the need for additional fiscal and monetary support.
“That policy outlook is continuing to provide a supportive backdrop to equities despite recent volatility,” ANZ Bank analysts wrote in a note.
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11.30pm update: Full steam ahead fo Germany’s spending push
German Finance Minister Olaf Scholz has said he would persist with heavy spending to help Europe’s largest economy recover from the coronavirus pandemic as rescue and stimulus measures push debt to its highest level on record.
Speaking to lawmakers to present his draft budget for 2021, he said the government would continue to help companies and consumers by expanding job protection schemes and would keep public investments high.
He said: “With the investments of this budget, we’re pushing the door further open for the future of our country.”
10.00am update: FTSE slide continues
FTSE’s dire start to the morning shows no signs of stopping.
The UK index opened at 5,927 this morning before quickly falling to 5,897 in just 20 minutes.
It has since fallen to 5,873, before recovering slightly to 5,878.
8.25am updatw: FTSE drops on open
FTSE has dropped on open this morning, in contrast to yesterday’s bright start.
The UK index closed at 5,927 yesterday, after rising from 5,842.
This morning it has fallen to 5,896.
More to follow…