After its slightly bearish parenthesis the day before, the Paris Bourse should try to resume risk-taking following the strong progression of Wall Street. Hope in a new budget aid package for the United States is making a comeback in a market that is beginning to incorporate the growing likelihood of a Democratic victory on November 3. Just over half an hour from the opening, the October futures contract on the Cac 40 index is up 0.5%.
The MSCI Asia-Pacific ex- Japan index rose for the fourth consecutive session this morning to return to its best level since early September, while the Nikkei 225 of the Tokyo Stock Exchange closed up nearly 1%.
On Wall Street, the S&P 500 rose 1.7% on Wednesday, erasing its decline from the day before, and the Nasdaq Composite 1.9% as the Democratic Speaker of the House of Representatives spoke with the secretary to Treasury Steven Mnuchin of a 25 billion dollar support plan for airlines. Discussions are expected to continue on Thursday. Donald Trump , who froze negotiations in Congress on a comprehensive plan until the presidential election on Tuesday, subsequently proposed targeted measures aimed at airlines, $ 135 billion for small businesses and a check for $ 1,200 per hearth.
The Fed as a last resort?
” It’s another good day for risk taking and stocks are on the rise ,” said Chris Weston, strategist at Pepperstone in Melbourne. Discussions about a support plan are on again, but it is getting tiring and the markets don’t need a reason to go up, they just don’t need any negative news. And since there are none, stocks are soaring and US Treasuries are being abandoned, ”he adds. According to him, the Fed should adopt new support measures before Christmas if the tax package turns out to be too limited or too late.
The latest polls show that Joe Biden’s lead is strengthening as the November 3 presidential election looms, reinforcing the feeling that an agreement will be reached in Congress on a support plan. In the vice-presidents’ debate, which pitted Republican Mike Pence against Kamala Harris , Joe Biden’s running mate last night, the issue was essentially the management of the health crisis by the Trump administration. If the two candidates were courteous, unlike their respective leaders, they both avoided answering certain questions.
In this context, jobless claims in the United States for the week ended October 3 will be closely monitored. Bloomberg’s consensus is for 820,000 new allocation requests, up from 837,000 seven days earlier.