Weekly News Summary for October 30 to November 5, 2020
Friday, Oct. 30, 2020: Eurozone’s GDP Rebounds in Q3
The eurozone economy rebounded from its coronavirus-driven recession in the third quarter, but output remained below levels reached before the pandemic, while other data signaled that the bloc’s recovery has halted as the virus spreads once again.
The Eurozone’s gross domestic product (GDP) improved by 12.7% in the three months to September, higher than expectations of a 9.4% growth, although the figures remained 4.3% short of its pre-pandemic level reached at the end of 2019.
Monday, Nov. 2, 2020: Eurozone PMI Recovers
The Eurozone’s manufacturing growth recovered in October to reach its highest in over two years, although economists suggested that the latest public health measures may lead its economy to decline by 2.3% in the fourth quarter.
The Eurozone’s manufacturing purchasing managers’ index (PMI) finalized at 54.8 in October, rising from the reading of 53.7 in September, but the IHS said business layoffs and longer lead times due to disruptions caused by the pandemic continued in the area.
Tuesday, Nov. 3, 2020: Ant’s IPO Suspension Sends Alibaba Down
Chinese fintech group Ant Group’s $37 billion dual-listing in Hong Kong and Shanghai had been suspended on Tuesday, halting the world’s biggest stock market debut, following news that the company founded by Jack Ma may face stricter scrutiny from China’s financial regulators.
The suspension reverberated across markets, with Alibaba Group Holding Ltd., which owns a third of Ant, losing 9% and erasing nearly $76 billion of its market cap, more than double the amount Ant was looking to raise.
Wednesday, Nov. 4, 2020: Uber, Lyft Rises after Election Win in California
US ride-hailing companies Uber Technologies Inc. and Lyft Inc. are so far the winners of the election, as voters in California approved Proposition 22, a gig-work ballot measure that recognizes app-based and ridesharing drivers as independent contractors, rather than employees.
The election win in California sent shares of Uber up by 16%, while Lyft gained 18%, although the question about whether the two companies will pass similar privileges in other US states remains.
Thursday, Nov. 5, 2020: Asian Shares Up, Bonds See Support in US Gridlock
Asian shares gained, and US bonds continued their rally on Thursday, as investors bet on a potential policy gridlock, which could significantly support some industries while also keeping government borrowing in check.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.7% to marked its highest since February 2018, and the Nikkei closed with a gain of 1.7% after reaching a nine-month high, while the US 10-year Treasury yield retreated to 0.73%, having registered a five-month high of 0.93% on Wednesday.
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