US Stimulus, Rising Covid & Falling Oil
October 20, 2020 7:37 AM
The stimulus clock ticks, covid cases rise & oil extends losses
Wall Street ended lower as the stimulus clock ticked. News that there was still no agreement on fiscal stimulus unnerved investors. The negativity spilled over into Asia overnight and Europe is also set to start in the red.
Looking ahead, the final election debate between Trump and Joe Biden will be live. Whilst Joe Biden holds the lead in the national polls there are signs that this could be narrowing as we move closer to the big day. Netflix is also due to report later today,
A word on oil
Oil prices are dropping for a fourth straight session on Tuesday amid growing concerns that the second wave of covid cases globally will choke the oil price recovery whilst increasing output from Libya is providing additional supply at a time when it is not needed.
Tighter lockdown restrictions are being applied globally as the number of covid cases crosses the 40 million mark, with Europe and the US seeing a strong resurgence.
An OPEC meeting on Monday did little to calm concerns over waning demand and plentiful supply as Russia and Saudi Arabia avoided giving any indication, they would reconsider the planned output increase in January.
Currently the OPEC+ group will stick to the planned output cut of 7.7 million barrels per day in December, reducing to5.8 million in January. WTI is currently just holding above $40.
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