The Paris Bourse continues its momentum of the past two weeks, with hopes of a sustained recovery in the Chinese economy offsetting doubts about a quick deal in the US Congress around a broad fiscal stimulus package. Still, the market continues to rely on a limited deal focused on airlines, small businesses and homes.
The upward movement is limited by the worsening health crisis in Europe. Prime Minister Jean Castex has not ruled out localized reconfinements in France, while Boris Johnson and the Italian Minister of Health are preparing to announce new restrictions at the national level in their respective countries. Activity is limited on this Columbus Day, a public holiday in the United States. If Wall Street will be open on Monday, some managers should be absent, the US bond market will be closed. In addition, the third quarter results season in the United States begins in earnest this week with the accounts of the big banks. The results of the S&P 500 companies are expected to be down about 20% from the same period last year, after contracting 32% in the second quarter, according to FactSet data.
At 12:25, the Cac 40 gained 0.49% to 4,971 points in a business volume of 635 million euros. The December futures contract on the Dow Jones index is stable.
Biden still ahead of Trump in the polls
In the United States, discussions on a plan to expand Congressional support to the economy seem to be deadlocked after the failure of negotiations between the Democrats and the Trump administration, especially as the American president has called on parliamentarians to support its proposal for a limited plan using unspent funds from the previous plan. Mitch McConnell, the Republican Majority Leader in the Senate, said on Friday that a bipartisan agreement on a new comprehensive budget support plan ahead of the Nov. 3 election was unlikely.
There remains the prospect of an ambitious stimulus plan in the event of Joe Biden’s victory in the presidential election on November 3, accompanied by a majority in both houses of Congress. According to a Washington Post-ABC News poll released Sunday, Joe Biden is still ahead of Donald Trump by 12 points in voting intentions, against 42% for the outgoing president
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