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New developments for the USA and Europe markets - Market Overview – October 12

New developments for the USA and Europe markets - Market Overview – October 12

On a public holiday in the United States and some other countries around the world, stock markets experience significant growth as investor interest focuses on the start of the Q3 season.

Technology companies are the ones leading this upward momentum, after the announcement in Europe of new restrictive mobility measures. In the first lockdown from the second quarter of this year, the use of technologies that facilitate communication both in the workplace for private and personal use were highly promoted.

The American context

The US elections seem to have taken a back seat due to the substantial difference in voting intention shown by the polls in favor of the Democratic candidate Biden. Here everything indicates that the uncertainty is minimal, and as indicated in previous materials, the market is positive of a Democratic victory. This is mainly because the possibility that a larger fiscal stimulus package would be assured with the victory of Biden.

And in any case, Nancy Pelosi and Mnuchin, the American Secretary of the Treasury will continue to have meetings in search of an agreement to implement these measures even before the electoral date.

In this positive scenario in terms of market risk sentiment, USA500 has broken above the 3422 area, activating a reversal-pattern that has a theoretical target at the all-time highs located at 3580.

Everything will depend on the results of the companies, a result which we will find out by the end of the current month. It must be kept in mind that forecasts are positive for many companies, thus it will be necessary that expectations are met or exceeded for the upward trend to continue.

Indices in Europe

In the case of the European indices, they still settle behind the North American ones. Germany30 stands out with three weeks of advances that bring it back to the resistance level around $13,277.

Even though the pandemic situation in Europe has worsened in recent weeks, the strict measures taken by governments seek an improvement in the number of infections soon.

Also, as a positive element, we must consider the statements of the President of the European Central Bank, Lagarde, who has stated that they are prepared to increase their monetary stimulus, and that the current expansionary policy will be maintained for a long and indefinite period of time. It seems that if the American indices – which have always had a high degree of correlation – have a good performance, the German index would be closer to the maximum levels at the beginning of the crisis around $13,700.

Maklumat/penyelidikan ini disediakan oleh Miguel Ruiz (“tpenganalisis penyelidikan”) dan tidak mengambil kira objektif pelaburan tertentu, keadaan kewangan atau keperluan khusus individu. Penganalisis penyelidikan bertanggungjawab terhadap kandungan laporan penyelidikan ini, samada sebahagian atau keseluruhannya, memperakui bahawa pandangan mengenai syarikat dan sekuriti mereka yang dinyatakan dalam laporan ini jelas mencerminkan pandangan peribadi dan pedagang bertanggungjawab sepenuhnya ke atas risiko mereka sendiri.

Penyelidikan yang disediakan bukanlah pandangan JME Financial Services (Pty) Ltd ataupun undangan untuk melabur dengan JME Financial Services (Pty) Ltd. Penganalisis penyelidikan juga memperakui bahawa tiada sebahagian daripada pampasannya, adalah, atau akan, secara langsung atau tidak langsung, berkaitan dengan cadangan atau pandangan tertentu yang dinyatakan dalam laporan ini.

Sehingga tarikh laporan diterbitkan, penganalisis penyelidikan dan pasangannya dan/atau saudara-mara yang bergantung kepada penganalisis penyelidikan, tidak memegang kepentingan dalam sekuriti yang dicadangkan dalam laporan ini (“kepentingan” termasuk pemilikan langsung atau tidak langsung terhadap sekuriti).

Penganalisis penyelidikan tersebut bukanlah di bawah JME Financial Services (Pty) Ltd. Anda digalakkan mendapatkan nasihat daripada penasihat kewangan bebas mengenai kesesuaian pelaburan, di bawah penglibatan berasingan, seperti yang anda anggap sesuai dengan objektif pelaburan tertentu anda, keadaan kewangan atau keperluan kewangan tertentu sebelum membuat komitmen untuk melabur.

Undang-undang Republik Afrika Selatan akan mengawal sebarang tuntutan yang berkaitan dengan atau yang timbul daripada kandungan maklumat/ penyelidikan yang disediakan.