(Bloomberg) — U.S. stocks climbed as lawmakers and the White House appeared closer to reaching a fiscal stimulus deal even as a volatile presidential debate raised concerns about a chaotic election.
The S&P 500 Index advanced after Treasury Secretary Steven Mnuchin told CNBC that he expects to reach a deal on relief with House Speaker Nancy Pelosi. Sentiment was helped by a private report that showed U.S. companies added a better-than-forecast 749,000 jobs in September, while the sparring between Donald Trump and Democratic hopeful Joe Biden fueled concern about a contested election outcome.
In Europe, stocks edged higher, led by utilities. Portfolio rebalancing tied to the end of the month had the potential to fuel choppy trading.
Global investors are also keeping an eye on news about coronavirus vaccines and the latest efforts to push through new stimulus measures in Washington. A reminder of the pandemic’s economic pain came from Walt Disney Co.’s announcement that 28,000 workers will be let go from its U.S. resort business.
“The market will react to headlines like last night’s debate, but at the end of the day Covid and economic statistics are more important for the longer term future of equity prices,” said Cristopher Grisanti, chief equity strategist at MAI Capital Management. “The prospect of a contested election is unsettling, but it doesn’t really affect earnings.”
Treasuries and the dollar were mostly steady, along with the price of gold. Emerging-market stocks gained.
Elsewhere, equities slumped in Asia. Crude oil traded around $39 a barrel in New York, heading for the first monthly loss since April, as the world’s biggest trading houses signaled a meaningful recovery in demand is some way off.
Here are some key events coming up:
The EIA crude oil inventory report comes out Wednesday.The September U.S. employment report on Friday will be the last before the November election.
These are the main moves in markets:
Stocks
The S&P 500 Index rose 0.4% as of 9:31 a.m. New York time.The Stoxx Europe 600 Index rose 0.1%.The MSCI Asia Pacific Index decreased 0.6%.
Currencies
The Bloomberg Dollar Spot Index was little changed.The British pound decreased 0.1% to $1.2854.The euro weakened 0.3% to $1.1714.
Bonds
The yield on 10-year Treasuries rose one basis point to 0.66%.Germany’s 10-year yield rose less than one basis point to -0.55%.Britain’s 10-year yield climbed one basis point to 0.19%.New Zealand’s 10-year yield climbed five basis points to 0.485%.
Commodities
West Texas Intermediate crude rose 0.4% to $39.42 a barrel.Gold weakened 0.3% to $1,892.62 an ounce.The Bloomberg Commodities Index fell 0.1%.
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