LCG: Markets move on from presidential debate

LCG: Markets move on from presidential debate

October 23, 2020

Equity
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The day ahead will see the reaction to the second and final US presidential debate as well as the release of October PMIs and Q3 earnings from British bank Barclays.

European stocks look set for cautiously higher open with the idea that the presidential debate won't have diminished chances of a new US stimulus bill. The approval of Remdesivir by the FDA as the first drug to treat COVID-19 is a big positive for markets beset by second wave concerns.

The standout market mover was Bitcoin, flying through the $13,000 handle – and seemingly moving to its own beat. Cryptocurrencies have been moving consistently higher this week – unaffected by the incessant stimulus on/off talk besetting other asset classes. PayPal allowing its users to store, pay and sell cryptocurrencies is, in the mind of crypto bulls, one more step towards mainstream use.

Stock markets remain in a volatile holding pattern before the US election. Europe faces the extra hurdle of earnings season but there were glimmers of hope on Thursday. Having slumped 5% in early trading, shares of IAG – the owner of British Airways – took off – surging 10% to finish 5% higher. The turnaround fuelled a rally that put other airlines like EasyJet among the top gainers on the today.

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