A New Round Of Fiscal Stimulus Negotiations In The US Stock Market Is Deeply Deadlocked. The NASDAQ Index Has Risen For Four Consecutive Times Against The Trend. The US Euro Zone Will Announce PMI Of Manufacturing And Service Industries

In the past week, due to the deadlock in the US Congress on a new round of fiscal stimulus plan, the three major U.S. stock indexes continued to decline. However, the strong performance of the US retail sales data in September supported the market, and the weekly collective gains were made. Among them, the NASDAQ index rose for four weeks, the Dow and the S & P 500 index rose for three weeks. Last week, the Dow Jones industrial average was up 0.07%; the Nasdaq composite was up 0.79%; the S & P 500 was up 0.19%.

Europe's main stock indexes fell collectively. Britain's FTSE 100 index fell 1.61%, Germany's DAX index fell 1.09% and France's CAC40 index fell 0.22%.

In terms of commodities, WTI crude oil futures for November delivery rose 1.33%, London Brent crude oil futures for December delivery rose 0.39%, and Comex gold futures for December delivery fell 1.72%.

This week, P & G, IBM, Netflix, travelers, American Airlines and American Express will release the latest financial reports. In addition, the United States, Germany, the euro zone and the United Kingdom will release economic data such as manufacturing and services PMI in October, from which investors will judge the recovery of the global economy. The US Federal Reserve's economic Brown Book and speeches by a number of officials also deserve attention.

Many factors make the stock market ups and downs

Traders are likely to have another turbulent week as new crown cases in the US and Europe rise, while Democrats and Republicans remain deadlocked on new financial aid.

Tom essaye, founder of seven report, said in a report to clients that "the lack of fiscal stimulus, the weakening of economic momentum, and the threat of an increase in new coronavirus cases are currently having a quite negative impact on risk assets."

According to statistics, in the past seven days, 39 states in the United States, including New York, New Jersey and Wisconsin, have seen a continuous increase in the number of new coronal infections. Across the United States, the number of new cases per day has reached its highest level since August.

In Europe, the 7-day average number of new crown cases has surpassed that in the United States, prompting several countries to restore stricter social segregation rules and to cancel previous reopening measures.

"It means there may be a slight slowdown in economic activity, and we've noticed that from some data," said art Hogan, chief market strategist at national securities Hogan pointed out that the number of first-time jobless claims released on Thursday showed that the U.S. has reached a point where the job market will not get better, it will only get worse.

The number of unemployed workers reached the highest level since August last week, when it reached 89000 in August.

This week, investors will also be keeping a close eye on developments in the U.S. Congress as lawmakers continue to work on a new round of fiscal stimulus. At present, the political stance of Democrats and Republicans on fiscal stimulus "Hurts" those in need.

Last week, U.S. President trump said he would increase the current $1.8 trillion in new crown aid. However, the size of the White House's proposal is smaller than the $2.2 trillion passed by the house of Representatives. House Speaker Nancy Pelosi believes that the trump administration's proposal "is far from meeting" the required level.

This kind of repetition between the two parties has lowered market participants' expectation that the two parties will reach a compromise before the US election on November 3, which also increases concerns about the US economic recovery.

Quincy krosby, chief market strategist at Prudential Financial, said the political stance was hurting the economic groups most in need. "For small and medium enterprises like airlines, it's not just a political issue, it's everyday life. If we don't see an improvement now, the real economy will be affected. "

It is understood that the US Senate will vote on a $300 billion Senate Republican epidemic relief bill on Wednesday. In September, the rescue bill was vetoed by the Democratic Party, and it is expected to be rejected again this time.

Earnings season may no longer be the focus

The Dow and the S & P 500 fell for three consecutive days last week, the longest consecutive decline since mid September. But the two major stock indexes rose slightly on Friday, ending the downward trend.

Traders and investors will no longer be the focus of the new fiscal situation and investors are expected to continue to be the focus of this new situation.

In the past week, 49 S & P 500 companies including Goldman Sachs, JPMorgan Chase, Morgan Stanley and VF Corp. have reported their latest quarterly results. According to the learning scout, 86% of the 49 companies reported better than expected earnings.

However, negotiations on further fiscal stimulus have almost dominated the headlines, so the earnings season has little impact on the market.

Hogan said he hopes to put politics and new crown disease concerns aside next week, but there won't be much trading in this earnings season. "It's likely to be a record breaking season for companies that outperform expectations, but it's also going to be a largely ignored season because there are many other more important macro factors."

This week's global financial calendar

On October 19 (Monday), the United States released the US October NAHB housing market index; US Federal Reserve Chairman Powell, Federal Reserve vice chairman Richard Clarida, New York Fed chairman John Williams, Philadelphia Fed Chairman Patrick Harker, Atlanta Fed chairman Raphael Bostic will deliver speeches; European Central Bank President Lagarde will deliver a speech; IBM, Zions Bancorp, PPG industries, FNB and others will release financial reports

On October 20 (Tuesday), the United States announced the data of new housing starts in September and construction permits in September; Chicago Fed chairman Charles Evans will give a speech; the Australian Federal Reserve will release the minutes of the October monetary policy meeting; Procter & Gamble, Netflix, UBS, travelers, Lockheed Martin and others will release financial reports

On October 21 (Wednesday), the Federal Reserve announced the economic Brown Book; Loretta mester, chairman of Cleveland Federal Reserve, will deliver a speech; the United Kingdom will release economic data such as CPI and PPI in September; Tesla, NASDAQ, Verizon, Baker Hughes, Biogen and Manchester United will release financial reports

On October 22 (Thursday), the United States released economic data such as the number of people applying for unemployment benefits for the first time last week and the total number of completed housing sales in September; Germany released the GfK consumer confidence index in November; at & T, Coca Cola, Intel, capital one, American Airlines, Southwest Airlines and Union Pacific will release financial reports

On October 23 (Friday), the United States released the Markit manufacturing PMI, service PMI and other economic data in October; Germany, the euro zone and the United Kingdom released economic data such as manufacturing PMI and service industry PMI in October; Barclays, American Express, Illinois Toolworks, Cleveland cliffs and Daimler will release financial reports