US stocks rose on Friday

US equities ended mostly higher even as progress on fiscal stimulus talks seem to have stalled. The S&P 500 finished up 0.3%, the Nasdaq climbed 0.4% and the Dow lost 28 points, or 0.1%. The VIX slid to 27.

Investors remain focused on the chances of an agreement on a stimulus package as November’s election fast approaches. House speaker Nancy Pelosi said the chamber could pass a pandemic relief plan this week, though a deal with the White House remains elusive and the Republican-led Senate might not act before the US election. She cited a continuing lack of agreement on funding for stemming the pandemic and on aid related to education.

Earnings season continued on a strong note, and investors are looking ahead to big tech reporting this week. Meanwhile, oil fell on more supply from Libya expected to enter the market in four weeks.

The British pound advanced after trade talks between the UK and the European Union were extended to 28 Oct. Brexit negotiating teams have started intense daily negotiations, and these are likely to continue as both sides push to finalize a deal by the middle of November.

Asia stocks look set for a dour Monday, with the narrative focused on worsening virus outbreaks in the US and Europe. New Zealand and Hong Kong markets are closed for holidays; all eyes will be on the Chinese Communist Party’s Central Committee plenum that starts today.

Among the day’s data highlights include Japan services PPI and leading index and Singapore industrial production. The first reading of US 3Q GDP on Thursday is anticipated to be the strongest on record following a record dive in the prior quarter as businesses were shuttered by the pandemic.

Source: OCBC Research - 26 Oct 2020