IHS Markit also noted that the PMIs will be the first major surveys to provide clues as to how business conditions have changed in the aftermath of the US elections and at a time when the adverse impact of new lockdowns in many countries will have been countered by encouraging news on COVID-19 vaccines.
US markets shut for Thanksgiving
Markets are also watching for any potential news on a fiscal stimulus package from the US, although it currently looks unlikely that any progress on the trillion-dollar package will be made before president-elect Joe Biden takes office on January 20.
More consolidation expected
IHS Markit viewed the US PMI data to provide the first post-election snapshot of the world’s largest economy. “October data showed business activity growth accelerating to the strongest since May 2018, driven by the largest increase in service sector activity since April 2015 and a marked improvement in business confidence about the year ahead,” IHS Markit added.
Markets weigh new infections, vaccine
“This outlook, however, is still being hampered by uncertainties with regards to the timing of when vaccines will have a meaningful impact on the global community. Not least considering the continued surge in coronavirus cases across the world leading to renewed lockdowns and reduced mobility.”
More data from UK, US, Eurozone
“In the UK, growth weakened markedly in October, and the further lockdown in November is expected to have hit the economy hard, threatening a double-dip downturn. The data will also reveal the extent of stockpiling by companies ahead of the end of the Brexit transition period.”
Last month’s IHS Markit survey showed that firms were slightly behind on stock building compared to the same time ahead of ‘Brexit deadlines’ in March and October 2019.
UAE bourses off to a positive start this week
Both the bourses in the UAE gained on Sunday, as investors continued to pocket weekly gains with markets worldwide witnessing an improving pandemic-stricken backdrop.
The Dubai Financial Market (DFM) ended up 0.4 per cent, while the Abu Dhabi Securities Exchange (ADX) too recorded a similar-sized gain. While the DFM ended last week up about 2 per cent, the ADX rose about 1 per cent.
Similar gains were recorded in indices elsewhere in the GCC, with benchmarks in Kuwait, Qatar and Bahrain, all edging up, while the region’s largest bourse – Saudi Arabia’s Tadawul – traded largely flat.
Original news source Credit: gulfnews.com
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