Returning to its highest since September 21, the Paris Bourse is about to chain a second week of gains in a row, which had not happened since mid-August. The soap opera of the fiscal stimulus plan in the United States continues to hold the markets in suspense, thus maintaining a renewed appetite for risk. Another supporting factor is the continued acceleration in the growth of activity in the service sector in China in September .
Latest episode to date, the White House seems to want to change its tune, which leaves hope that Donald Trump would again lean towards a broader support plan. Treasury Secretary Steven Mnuchin has indeed announced to Nancy Pelosi, the Democratic President of the House of Representatives, that the president is once again leaning towards a comprehensive aid plan after having dismissed it last Tuesday.
Towards a “blue wave” on November 3?
Investors also believe that a clear victory for Joe Biden in the November 3 presidential election and a strengthening of Democrats in Congress would be pro-equities by increasing the likelihood of an ambitious fiscal stimulus package, which has effect of alleviating fears about tax increases. We’re facing a ” growing likelihood of seeing, let’s call it a blue wave [color of Democrats],” said Abby Joseph Cohen, senior investment strategist at Goldman Sachs on Bloomberg TV. This ” might not be such a bad thing, because it would give us more certainty about politics, especially about using fiscal policy to support our economy at this time ”.
US index futures are trending higher this morning after a 0.8% gain in the S&P 500 on Thursday night. Asian markets are advancing, driven by the 2% increase in the CSI 300, which includes the main capitalizations of the Shanghai and Shenzhen stock exchanges . We should not neglect the catching-up aspect of this movement when the Chinese markets remained closed for a week.
Euronext completes the takeover of Borsa Italiana
Euronext will buy Borsa Italiana, the operator of the Milan Stock Exchange, from the London Stock Exchange (LES) for 4.325 billion euros, the two groups announced this morning.
Orange . Orange Belgium has chosen Nokia to gradually renew its existing mobile network and to deploy 5G.