U.S. Stocks Rallied on Monday after Last Week’s Selloff


Equity markets traded in the green on Monday as investors prepared for a crucial week spanning the U.S. election, along with a Federal Reserve meeting.


Futures on the S&P 500 surged forward by 1.4% after last week’s sharp selloff. Meanwhile, equity benchmarks across Europe and Asia soared as well, with investors taking comfort in data that showed strength in China’s economic expansion.


Online grocery retailer Ocado Group Plc skyrocketed by 8%, leading gains in the Europe Stoxx 600 Index.


Dunkin’ Brands Group Inc. also jumped by 6.2% in U.S. pre-market trading. The company agreed for private equity-backed Inspire Brands Inc. to acquire it in an $11.3 billion deal. That will be one of the largest transactions ever in the restaurant industry.


Overall, futures on the S&P 500 Index gained 1.1% on Monday, while the Stoxx Europe 600 Index soared by 1.4%. The MSCI Asia Pacific Index also climbed up by 1.1%, and the MSCI Emerging Market Index edged up by 0.8%.


However, not everyone gained in the markets today. Oil prices tumbled down to a five-month low. Libya accelerated production, while the U.K. joined other European countries in toughening travel restrictions, causing oil’s slump. Russia depends on crude as a key export. The country saw the ruble weaken to the lowest level since March against the greenback.


This week’s main event will be Tuesday’s U.S. election. Thus far, Democratic nominee Joe Biden is leading President Donald Trump in polls. However, Covid-19 developments are also front and centre, as daily cases surge in many parts of the world.


While other countries struggle with the pandemic crisis, China remains a bright spot in the global economy. According to the newest data, the Caixin China October manufacturing purchasing managers’ index increased to 53.6.


What do analysts say?


Simon Ballard, the chief economist at First Abu Dhabi Bank PJSC, stated that this coming week would be huge for the United States and global markets. Analysts see the potential for a sharp rise in volatility around these events. All this happens in the context of a still deteriorating coronavirus situation across much of America, Europe and elsewhere.


During the last session, gold surged forward while the yield on 10-year Treasuries remained at 0.86%. The VIX Index, which is a measure of implied volatility in U.S. stocks, lowered to 37.


Earlier today, the calculation of the Stoxx Europe 600 Index and other equity benchmarks was delayed by a technical glitch that lasted approximately an hour. However, neither equity derivative trading nor the cash market was affected by the glitch.

Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. Subscribe now and receive FREE updates on the market today!

View original post