Stocks fluctuated between positive and negative territory last week, as investors continue to weigh rising pandemic concerns with encouraging economic data. In the U.S., September retail sales rose as consumer prices also rose for the fourth month in a row following the sharp falls seen in the first half of the year. The optimism was tempered by an unexpected rise in unemployment claims and ‘High frequency’ data continues to be somewhat erratic as the effects of the economic response to the pandemic continue to be distilled.
Stimulus talks in the U.S. are also ongoing as comments over the weekend raised hopes that there could be a deal agreed prior to the election. However, the highly politicised nature of the negotiations means an agreement may yet prove elusive, as localised outbreaks begin to return across the U.S.
Eurozone stocks fell as the lockdown debates, we are seeing here in Ireland, were echoed across the continent with Italy the latest country to announce measures yesterday. The fears over a winter spike in cases pushed German Bund yields (which move inversely to price) to their lowest levels since March. ECB Chief Economist, Philip Lane, commented that ‘the next phase is going to be tougher’ in terms of the evolution of the eurozone economy.
For the week ahead, Brexit negotiations are set to continue, over 30 S&P 500 companies are reporting earnings and the final U.S. presidential debate takes place on Thursday. CLICK HERE