The energy and financial sectors determined the mood of market players. All this was compounded by the official statistics on coronavirus – about 1 million deaths. The statement of New York Mayor Bill de Blasio that the number of positive test results for coronavirus is more than 3% for the first time in several months did not bring relief to the market.
This week, financial companies, in particular banks, which lost a significant part of the profit achieved just a day earlier, are also suffering a defeat. In recent months, investors have been concerned about how much the growth of coronavirus infection can affect the revival of the economy. Moreover, this problem is still open. The market is looking forward to the adoption of a bill to stimulate economic growth, however, this long-awaited event remains unfulfilled.
The following events may affect market sentiment on Wednesday: the next IPO of the technology company Palantir, the confrontation between two contenders for the US presidency (Trump and Biden), and the publication of economic data on home sales in the US.
Let's start with the IPO or the first public sale of shares of a joint-stock company to an unlimited number of people. This time, Palantir Technologies is a public company. Founded in 2003, Palantir is a privately held American company that develops software for data analysis. It focuses on the intelligence agency of the US government, intelligence agencies, investment banks, and hedge funds. Palantir launches through a direct listing on the New York stock exchange. It is worth noting that investors expect the latest technologies to enter the market with great interest. It is noteworthy that the company's founder, Peter Thiel, is also a co-founder of PayPal Holdings Inc. and one of the first investors in Facebook and Microsoft.
The declarative battle of US presidential candidates can also affect the market. On Tuesday night in Cleveland, Trump and Biden met for their first debate, and according to polls, the winner of the verbal battle was Joe Biden. During an hour and a half of the argument, he gave Donald Trump a large number of offensive characteristics. Two more meetings are expected ahead, during which the audience will form a certain opinion about the problem and largely determine the outcome of the upcoming elections in November. The second meeting of candidates for the post of head of the White House is scheduled for October 15 and will be held in Miami, and the third – on October 22 in Nashville. According to the Financial Times newspaper, which refers to a study by financial consultant deVere Group, the US presidential election concerns investors many times more than the second wave of coronavirus.
However, we will not underestimate the role of other equally important factors that can affect the market on Wednesday. Investors are waiting for the publication of economic data on home sales and expect that in the third reading, the US GDP for the 2nd quarter will remain unchanged, namely at the level of 31.7%. It is worth noting that the press release will present GDP statistics for the first time concerning industries. Investors also expect that the number of pending home sales in the US in August will be able to rise by 3.2% compared to July (then the number of transactions increased by 5.9%). Analysts also forecast that the number of people employed in the US non-agricultural sector will rise from 428 thousand in August up to 650 thousand.
