European markets came under pressure after the giant SAP revised down its 2020 outlook
U.S. stock indexes closed mostly higher Friday as investors monitored Washington for updates to stimulus negotiations, with House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continuing to hold talks on a measure. As a result, the S&P 500 rose 0.34%, the Dow Jones Industrial Average dropped 0.1%, and the Nasdaq Composite gained 0.36%.
Today in Asia, stocks were mixed-to-lower as new coronavirus cases surged in the U.S. as well as in Europe. On Sunday, House Speaker Nancy Pelosi said she’s not giving up on passing another coronavirus relief economic package before the November 3 election. The Shanghai Composite in China was down 0.82%. In Japan, the Nikkei 225 dipped marginally. Markets in Hong Kong were closed for holidays.
In Europe, equities opened lower on Monday amid new restrictions on activity in response to surging virus cases. Also, regional markets came under pressure after the German business software giant SAP revised down its 2020 outlook and said the impact of the pandemic has been to push back customer investments between one and two years. SAP stocks plunged by nearly 20% on the announcement before trimming intraday losses to 17%.
Meanwhile, dollar demand has surged on Monday, with EURUSD extending losses to the 1.1810 area in recent trading after Germany’s October Ifo business climate index arrived at 92.7 versus 93.0 expected, marking the first drop in German business morale in six months. Furthermore, the expectations component also fell amid the resurgence in virus cases. The expectations index arrived at 95.0 versus 96.5 expected and 97.7 previously. In the short term, the euro could derail the 1.18 handle if the pressure intensifies.
In other markets, bitcoin price is marginally higher today after a rejection from mid-2019 highs around $13,360 registered on Sunday. The BTCUSD has settled in the $13,000 area in recent trading, struggling to challenge the mentioned peaks. It looks like the digital currency could retreat further if this handle gives up in the short term while the overall trend continues to look bullish.
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