Stock Futures React To Surge In Coronavirus | Cruise Stocks In Focus | Gilead Gets The Green Light

Stimulus Saga

Traders are still concerned about
the prospects of the stimulus deal in the U.S, and this is
influencing the European and U.S. futures. There is no doubt
that this has become a never-ending saga; however, everyday,
there is another glimmer of hope.

Having said this, a
full agreement on the second stimulus package still remains
a challenging task; however, having an agreement on the
framework is a real possibility.

The U.S.
Elections

The U.S. presidential elections are only 11
days away, and last night we had the final debate between
President Trump and Joe Biden. This time there was less
drama, and the debate was much more disciplined. Both
leaders kept their focus on the coronavirus situation,
economic recovery, and green energy.

The debate
doesn’t have much influence on the markets as this is more
of a political drama than anything else. Nonetheless, we
always get more clarity behind the policies of each leader
and investors do pay attention to this.

Nearly 55
million Americans have already voted ahead of this election,
so it is safe to say that a large majority of them have
already made their decision.

Brexit
Agreement

The U.K. signed a trade agreement with
Japan under the same terms which it had when it was part of
the E.U. This is certainly good news for the U.K. economy,
and it may help the country to get more deals with other
countries. But this particular event may not have any
significant influence on the U.K.’s deal with the E.U. The
Brexit talks have not made any progress yet, and a cliff
edge is really close, given the fact that time is running
out.

Cruise Stocks

Cruise stocks are back in
demand as there is a lot of hope among investors that the
ban will be lifted soon. There is no doubt that all cruise
stocks have taken a massive beating, and some of them even
sold their cruises for scrab just to cut down the
cost.

But this week, we have seen a decent turnaround
in cruise stocks, and names like Royal Caribbean and
Norwegian have bounced back up. If the White House lifts the
bans, these stocks can really see some wild moves in the
coming days, and that could be an opportunity for
investors.

Even if Donald Trump doesn’t open the
cruises in the U.S. for another month, companies like
Carnival have already volunteered to suspend the travel
until the end of November.

Coronavirus
Update

Investors are worried about the surge in
coronavirus in Europe. France reported over 40,000 new cases
for the first time yesterday. Overall, daily Covid-19 cases
are reaching their record number in Europe.

The
situation is not getting out of control yet, but alarm bells
have started to ring for sure. The reason that I am saying
this is because curfews have started to spread across
Europe.

There are also rumors in the market that
Italy, the third-largest economy in Europe, could very soon
be implementing a national curfew—this will be a real blow
to its economy.

Overall, this may be a good strategy
to circuit break the surge in coronavirus cases, but this is
coming at a very high economic cost that most countries
cannot afford to pay.

Gilead‘s FDA
Approval

The U.S. Food and Drug Administration, FDA,
gave the green light to Gilead Sciences antiviral therapy
remdesivir yesterday. We are expecting the stock to be
highly volatile
today.

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