Better-Than-Expected Economic Data Offsets Worries About Lockdowns
China reported that Manufacturing PMI increased from 53 in September to 53.6 in October while analysts expected that it would stay unchanged at 53. The new report highlighted the continued economic recovery in China which managed to contain the virus and enjoys a strong economic rebound.
In the Euro Area, Manufacturing PMI increased from 53.7 to 54.8 compared to analyst consensus of 54.4.
Today, the U.S. will also provide its Manufacturing PMI report which is expected to indicate that Manufacturing PMI increased from 53.2 in September to 53.3 in October. A better-than-expected report will likely provide additional support to stocks ahead of U.S. presidential election.
Oil Is Trying To Rebound From Recent Lows
WTI oil has found itself under additional pressure after UK Prime Minister Boris Johnson announced that England will have to go through another lockdown until December.
Lockdowns deal significant damage to oil demand as they limit mobility so it’s not surprising that oil continued to lose ground after this announcement and even tried to settle below the $34 level.
However, oil managed to find some support and is currently trading above the $35 level. It looks like traders believe that robust demand from Asian countries which managed to contain the virus will provide enough support to the oil market during Europe’s lockdowns. Meanwhile, stocks of oil majors are gaining ground in premarket trading.
Traders Make Their Final Bets Ahead Of U.S. Presidential Election
While S&P 500 futures are pointing to a strong start of the day, today’s trading session may still be choppy as traders manage their positions ahead of the U.S. presidential election day on Tuesday.
There is no shortage of forecasts about what will happen if either candidate wins, but one thing is certain – this week’s trading sessions will be very active.
For the next few days, economic reports and virus updates will take a back seat to the main event of the week, and traders should be prepared for increased volatility.
For a look at all of today’s economic events, check out our economic calendar.