Dow Jones Rebounds on Stimulus Hopes, Nikkei 225 May Lead Asia Lower
Oct 16, 2020 (MENAFN via COMTEX) —
(MENAFN – DailyFX) DOW JONES, NIKKEI 225 INDEX OUTLOOK:
Dow Jones rebounded amid reignited US stimulus hopes, weaker-than-expected jobs report The US Dollar climbed to one week high. US retail sales, Michigan consumer sentiment in focus Japan’s Nikkei 225 index edged lower, Singapore’s NODX fell short of expectations. Advertisement Dow Jones Index Outlook:
The Dow Jones Industrial Average (Dow) had a ‘V-shaped’ rebound on Thursday and closed marginally lower at 28,494, fueled by renewed hopes for a relief aid that is critical to the recovery of the world’s largest economy. House Speaker Nancy Pelosi said that the stimulus package won’t wait until January, while President Trump said he’d go ahead with a US$ 1.8 trillion package, according to Bloomberg. This contrasted a dismal picture painted by Treasury Secretary Steven Mnuchin, who made it clear that the chances of a deal before the election remained thin earlier this week.
Market sentiment, however, was fragile as a second viral wave seemed to have ramped up in parts of the world, leading to partial lockdowns and travel restrictions. US initial jobless claims unexpectedly tiled up last week, showing early signs of weakness in the employment market. The actual reading came in at 898k, versus a 825k forecast. The US dollar climbed to a one week high of 93.8, pointing to resurging demand for safety.
Weekly US Jobless Claims – Week October 10th
Source: Bloomberg, DailyFX
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Corporate earnings continued to deliver more positive surprises, which may help to cushion the downside of stock markets’ consolidation. All of the five S & P 500 constituents, which