· ‘We’re positive that it will be a good end to 2020,’ Ally Invest’s top investment strategist says
There may be more juice left in the fourth quarter.
Ally Invest’s Lindsey Bell said she believes the backdrop supports December gains.
“We’re positive that it will be a good end to 2020,” the firm’s chief investment strategist told CNBC’s “Trading Nation” on Wednesday.
Bell sees optimism surrounding another coronavirus aid package providing a near-term upside catalyst to stocks. She also cites resilient consumer spending as a driver.
But Bell, a CNBC contributor, acknowledges the gains may be lower than the historical average.
“December is usually the third-best month of the stock market. You usually see the S&P 500 up about 1.5%,” she said. “That might be a little more muted this year.”
While constructive coronavirus aid developments should help stocks, Bell warns it will also contribute to uncertainty regarding the size and timing.
“It could make investors a little bit nervous,” added Bell. “There will be some choppiness.”
Near-term, she sees mega-cap technology and high-flying stay-at-home names as most vulnerable.
· Stock futures little changed as Wall Street awaits news on stimulus, vaccines
U.S. stock futures were largely unchanged early Thursday morning as investors awaited news on stimulus negotiations and the vaccine approval process.
Futures contracts tied to the Dow Jones Industrial Average dipped 28 points. S&P 500 futures were also mildly lower, while those for the Nasdaq 100 were in slightly positive territory.
The move in futures came after a relatively quiet day on Wall Street as investors monitored developments in Washington about a possible stimulus bill. During Wednesday’s session, the Dow and S&P 500 gained 0.2%, while the Nasdaq Composite slipped 0.1%. The slight move higher for the S&P 500 resulted in a new record high.
· Asian shares mixed, U.S. dollar near two-and-half-year lows
Asian shares were mixed on Thursday after a choppy day of Wall Street trade, thanks in part to a disappointing U.S. jobs report, while the greenback languished near 2-1/2 year lows on growing optimism of a coronavirus vaccine.
Britain became the first Western country to approve a COVID-19 vaccine, with 800,000 doses of the Pfizer and BioNTech vaccine available for those at high risk starting next week
The U.S. Food and Drug Administration is holding its advisory committee meeting next week, while New York Governor Andrew Cuomo has said the state’s first delivery, enough for 170,000 residents, is expected on Dec. 15.
Hopes that the pandemic, which has so far killed nearly 1.5 million people globally, will finally be brought under control sparked a risk-on rally in currency markets with the Australian and New Zealand dollars advancing against their U.S. counterpart.
The dollar index slipped to a fresh 2-1/2 year low of 90.948 on Thursday and was last at 90.976. [FRX/]
Hopes of a fiscal support package in the United States also boosted investor optimism.
But share traders were less enthused.
E-Mini futures for S&P500 were a shade weaker as were Dow futures. Futures for Eurostoxx 50 were down 0.1%, those for Germany’s Dax eased 0.2% and London’s FTSE futures fell 0.4%.
That left MSCI’s broadest index of Asia-Pacific shares outside of Japan up 0.4% following two straight days of gains.
· Japan shares end near 29-yr peak as vaccines, stimulus draw closer
Japan shares held close to a 29-1/2-year high on Thursday as major countries moved closer to rolling out coronavirus vaccines, while hopes of more stimulus also boosted sentiment.
The Nikkei 225 Index ended up a modest 0.03% at 26,809.37, but settled near its highest since April 1991, while the broader Topix rose 0.07% to 1,775.25.
Real estate, consumer cyclicals, industrial companies, and financials rose in a sign that investors are betting on sectors that will benefit most from a revival in economic growth.
· China stocks end lower after U.S. House clears delisting bill
China stocks ended lower on Thursday, weighed down by fresh tensions between Beijing and Washington after the U.S. House of Representatives passed a bill that threatens to delist Chinese companies from U.S. stock exchanges.
Both Democrats and Donald Trump’s fellow Republicans echoed the president’s hard line against Beijing, which has became fiercer this year as Trump blamed China for the coronavirus ravaging the United States.
Sino-U.S. relations have been a key factor influencing market sentiment since the outbreak of the trade war in 2018. On Wednesday, U.S. President-elect Joe Biden told the New York Times that he will not immediately cancel the trade agreement that President Donald Trump struck with China nor take steps to remove tariffs on Chinese exports.
At the close, the Shanghai Composite index was down 0.21% at 3,442.14, while the blue-chip CSI300 index was down 0.2%.
· European markets mixed as global markets pause for breath
European stocks opened in mixed territory on Thursday as global markets pause for breath, awaiting more news on U.S. stimulus measures and coronavirus vaccine approval.
The pan-European Stoxx 600 edged fractionally below the flatline in early trade, with banks slipping 1% while tech stocks added 0.5%.
Reference: Reuters, CNBC
Thai
Eng