(Bloomberg) – Tech stocks rose after Advanced Micro Devices Inc. announced a $ 35 billion takeover of another chipmaker, helping to dampen concerns about the impact of growing infections coronavirus. The oil shot up.
Xilinx Inc. jumped after agreeing to be acquired by AMD. Megacap’s tech names, including Amazon.com Inc. and Apple Inc., have also grown in popularity, with investors looking for companies that are doing well during lockdowns. Harley-Davidson Inc. jumped about 25% on better-than-expected earnings. Financials and industrials surged on the S&P 500 as it struggled to rebound from its worst loss in a month on Monday.
The Stoxx Europe 600 index fell to its lowest since May due to concerns over the faster spread of the coronavirus on the continent. BP Plc warned of many challenges ahead as the pace of the recovery in oil demand remained uncertain.
Shares have been rocked in recent weeks by speculation about whether lawmakers will pass a fiscal stimulus package, but with almost no possibility of that happening before the Americans vote on November 3, investors were looking for a new insight of the health of American companies. A report on U.S. consumer confidence was worse than expected on Tuesday, with data showing Covid-19-related hospitalizations increased by at least 10% over the past week in 32 states and the nation’s capital.
“The number of Covid cases and hospitalizations continue to rise – they will continue to be watched closely as investors assess the likelihood of stricter mitigation measures,” said Yousef Abbasi, Global Market Strategist at StoneX .
Elsewhere, the dollar slipped and Treasury yields fell. Crude oil soared as U.S. Gulf producers shut down production ahead of Tropical Storm Zeta. Bitcoin topped $ 13,500, approaching levels not seen since just after the cryptocurrency market bubble burst almost three years ago.
Here are some events to watch out for this week:
- The Communist Party of China Central Committee is holding its very important plenum, where it is expected to chart the course for the development of the economy for the next 15 years. Until October 29.
- Brexit negotiating teams have entered intense daily negotiations, and these are expected to continue as the two sides work to finalize a deal by mid-November.
- The Bank of Japan and the European Central Bank have monetary policy decisions on Thursday, followed by briefings from Governor Kuroda and President Lagarde.
- The first reading of US GDP in Q3 on Thursday is expected to be the strongest on record after a record plunge in the previous quarter as many businesses were shut down by the pandemic.
Here are the main movements in the markets:
- The S&P 500 Index fell 0.1% at 2:41 p.m. New York time.
- The Stoxx Europe 600 index fell by 1%.
- The MSCI Asia Pacific index rose 0.2%.
- The Bloomberg Dollar Spot Index plunged 0.2%.
- The British pound rose 0.3% to $ 1.3061.
- The Japanese yen strengthened 0.4% to 104.43 per dollar.
- The yield on 10-year Treasuries fell three basis points to 0.77%.
- Germany’s 10-year yield fell four basis points to -0.62%.
- The UK 10-year yield fell four basis points to 0.23%.
- West Texas Intermediate crude added 2.6% to $ 39.57 a barrel.
- Gold strengthened 0.4% to $ 1,909.45 an ounce.
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