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China’s economic recovery quickens in third quarter but misses forecasts By Reuters

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© Reuters. A worker is seen on a crane at a construction site in front of Lujiazui financial district, in Shanghai

By Gabriel Crossley and Kevin Yao

BEIJING (Reuters) – China stepped up its economic recovery in the third quarter from the coronavirus shock but missed forecasts, pointing to continued challenges for one of the few drivers of global growth this year.

Gross domestic product (GDP) grew 4.9% in July-September from a year earlier, the National Bureau of Statistics (NBS) said on Monday, slower than the median 5.2% forecast by analysts in a Reuters poll and following 3.2% growth in the second quarter.

The world’s second-largest economy grew 0.7% in the first nine months from a year earlier, NBS said.

Policymakers globally are pinning their hopes on a robust recovery in China to help restart demand as economies struggle with heavy lockdowns and a second wave of coronavirus infections.

China has been steadily recovering from decades-low growth seen in the first months of the year caused by the coronavirus shock.

But several recent indicators have pointed to a broader upturn in consumption as well in the third quarter.

On a quarter-on-quarter basis, GDP rose 2.7% in July-September, the bureau said, compared with expectations for a 3.2% rise and an 11.5% rise in the previous quarter.

Industrial output grew 6.9% in September from a year earlier, after a 5.6% rise in August, while retail sales grew 3.3%, versus a 0.5% rise in August.

Fixed-asset investment rose 0.8% in the first nine months from a year earlier, after dipping 0.3% in the first eight months.

The government has rolled out a raft of measures this year, including more fiscal spending, tax relief and cuts in lending rates and banks’ reserve requirements to revive the coronavirus-hit economy and support employment.

While the central bank stepped up policy support earlier this year after widespread travel restrictions choked economic activity, it has more recently held off on further easing.

The International Monetary Fund has forecast an expansion of 1.9% for China for the full year, the only major economy expected to report growth in 2020.

Premier Li Keqiang warned earlier in October that China needs to make arduous efforts to achieve its full-year economic goals, citing a complex domestic and foreign environment.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

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U.S. issues fresh Iran-related sanctions targeting state oil sector By Reuters

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WASHINGTON (Reuters) – The United States on Monday imposed fresh Iran-related sanctions targeting the Islamic Republic’s oil sector, including the Iranian Ministry of Petroleum, in Washington’s latest action to increase pressure on Tehran.

Also blacklisted in Monday’s move targeting individuals and entities are the National Iranian Oil Company (NIOC), and the National Iranian Tanker Company (NITC), according to a statement from the U.S. Treasury Department.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Virus Gains Momentum, Stimulus Stalls, Ant Group IPO

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© Shutterstock

By Geoffrey Smith 

Investing.com — The spreading coronavirus triggered sharp new containment measures in Europe, hitting global stocks. Aides to Vice President Mike Pence tested positive for the virus, while U.S. stimulus talks remained deadlocked. Ant Group gets closer to completing its IPO. New homes sales are set to hit a new 14-year high. Here’s what you need to know in financial markets on Monday, October, 26th.

1. Virus spreads further; Stimulus talks still deadlocked

The U.S. registered over 60,000 new cases of Covid-19 on Sunday, a drop from the daily records set last week but still up from a week earlier. While the high number is partly explained by expanded testing, hospitalizations, at just under 42,000, are up by some 50% from a month ago, while the seven-day daily average for deaths, at 885, is also up by over 10% over from a week ago.

Over the weekend, the White House confirmed that a number of aides to Vice-President Mike Pence had tested positive for the virus, casting further doubt over the administration’s ability to keep the virus under control. Pence, who denied the reality even of a second wave of the pandemic in the summer, has indicated he won’t suspend his campaigning activities, with only eight days to go before the election.

The chance of a package of economic stimulus measures, meanwhile, receded still further at the weekend, with both sides blaming each other (yet again) for the lack of progress.

2. Europe takes fright as cases hit record 

Europe lurched further toward a full lockdown as France – with just 20% of the U.S.’s population – posted over 52,000 new cases on Sunday, or nearly 90% of the U.S.’s number. Italy meanwhile enforced a 6 PM nationwide closing time on bars and restaurants, while Spain’s government declared a fresh nationwide state of emergency (which can stay in force for up to six months).

The rapid deterioration in the public health situation was evident in the closely-watched , which tracks German business sentiment. It fell more than expected to 92.7 from 93.2.

Some modest relief came from the delayed reaction to Standard & Poor’s ratings announcements over the weekend. S&P upgraded the outlook on Italy’s sovereign debt to stable from negative, leaving the long-term rating at BBB. It also left the U.K.’s AA-rating untouched, adding some favorable commentary about the flexible response of U.K. monetary and fiscal policy to the pandemic. bond yields fell nearly 10 basis points to test record lows

3. Stocks set to open lower: SAP shocks, Astra reassures

U.S. stock markets are indicated to open markedly lower, with investors spooked by the surge in virus cases and the prospect of a long and difficult winter.

By 7:35 AM ET (1135 GMT), were down 266 points, or 0.9%, while were also down 0.9% and were down 0.8%.

Europe’s stock markets had fallen sharply at the open before recovering somewhat, as business software giant SAP (NYSE:) slashed its short- and medium-term profit forecasts after accepting that the pandemic will have a longer-lasting impact on business.

Markets were supported by positive news from AstraZeneca (NYSE:), which claimed that its experimental Covid-19 drug had provoked a robust response in the immune systems of elderly patients in its late-stage trial.

4. China sanctions U.S. defense companies, Ant Group prices HK leg of IPO

China slapped sanctions on Boeing (NYSE:) and Lockheed Martin (NYSE:) in response to the recent U.S. deal to sell state-of-the-art weaponry to Taiwan.

The measure came as China’s Communist Party begins a four-day meeting to map out its priorities for the next five years. The event is closed to the press so its conclusions may not be known until later in the week.

Elsewhere, Bloomberg reported that Ant Group has priced the Hong Kong leg of its record-breaking IPO at HK$80 a share. The IPO, which is set to be the world’s largest ever with an estimated US$35 billion of shares up for grabs, has sparked a scramble for stock among notoriously exuberant Chinese retail investors. Ant Group has earmarked 80% of the dual offering in Shanghai and Hong Kong for institutional investors.

5. New home sales, regional Fed surveys due

The U.S. will report new home sales data for September at 10 AM ET.  Sales are expected to hit 1.025 million, the highest level since the heady days of the subprime credit boom in 2006, albeit that would reflect a slowdown in month-on-month growth to 2.8% from over 4% in August.

There will also be surveys from the at 8:30 AM ET and the at 10:30 AM ET, as the focus sharpens on the Federal Reserve’s policy-making committee meeting next week.

The earnings calendar is also relatively light before a flood of updates later in the week, with Hasbro (NASDAQ:) already reporting better-than-expected results. Twilio (NYSE:) and NXP (NASDAQ:) report after the closing bell.





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IRS Gives More Time to Claim $500 in Stimulus Aid for Each Child By Bloomberg

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© Bloomberg. The Internal Revenue Service (IRS) headquarters stands in Washington, D.C., U.S., on Tuesday, Jan. 8, 2019. The IRS will issue refunds to taxpayers even if the U.S. government shutdown extends into the filing season, a decision that may reduce political pressure on Congress and President Donald Trump to reach a deal to reopen the federal government.

(Bloomberg) — Parents who have yet to receive the $500 stimulus payments for each child as part of the coronavirus stimulus package passed in March now have until Nov. 21 to claim the money, the Internal Revenue Service said.

“Federal beneficiaries who didn’t register to receive $500 per child payments earlier this year now have additional time,” the IRS said in a statement Monday. The new guideline gives parents until 3 p.m. Eastern Standard Time on Nov. 21 to claim the payment using a tool for people who don’t file income taxes.

The IRS previously said that recipients needed to claim their payments by Sept. 30. Individuals can also claim any outstanding payments related to the economic aid package filing a tax return next year and claiming the benefit.

The IRS said it is still working to distribute the $1,200 stimulus payments for low and middle-income adults, and the $500 for children that Congress included in the March coronavirus relief bill. The agency said it has struggled to locate individuals that aren’t required to file tax returns or aren’t connected to another federal benefit program, such as Social Security.

Democrats and Republicans have both supported including a second round of stimulus payments in another relief bill, but the two sides have been unable reach a deal. IRS Commissioner Charles Rettig told a House committee earlier this month that his agency is “better prepared” to send more stimulus checks now than they were in March.

©2020 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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