GLOBAL MARKETS-Asian equities set to slip as vaccine trials, stimulus talks stall

By Suzanne Barlyn

Oct 14 (Reuters)Asian equities were set to slip on Wednesday as halted COVID-19 vaccine trials and an elusive U.S. stimulus agreement weighed on investor sentiment, while the dollar rose from Tuesday’s three-week low as demand firmed for safe-haven assets.

Johnson & Johnson JNJ.N said on Tuesday that it was pausing a COVID-19 vaccine trial due to a study participant’s unexplained illness. Eli Lilly and Co LLY.N later said that it had also paused the clinical trial of its COVID-19 antibody treatment due to a safety concern, leading the U.S. equity market to deepen losses.

J&J shares lost 2.3%, while Eli Lilly closed down nearly 3%.

“That just spoke to the fact that a vaccine could take longer to be delivered than what the market’s expectations are calibrated towards,” said CommSec market analyst Tom Piotrowski in Sydney.

The Australian share market will likely open about

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US Banks Report Good Earnings, But Warn Of Hit If No More Stimulus

Large US banks reported better-than-expected results Tuesday on an improving economy, but cautioned that the recovery could falter if Washington fails to enact new stimulus measures.

“It’s important and it needs to happen as quickly as possible,” said Citi Chief Financial Officer Mark Mason, who added that massive spending from Washington has helped avert a tidal wave of delinquencies so far.

JPMorgan Chase executives warned of a “double-dip” recession if there is not another package. That takes place when a second period of economic contraction follows an initial recovery.

“The people we need to help the most are small businesses and the unemployed,” said JPMorgan Chief Executive Jamie Dimon, who said Washington’s actions will determine whether it needs to take much higher reserves for bad loans.

“If the better outcomes happen” with a good a stimulus package, “we are over reserved by $10 billion,” he said. But if there is

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Global economy’s recovery hinges on stimulus, virus battle, officials say

By David Lawder and Jan Strupczewski

WASHINGTON/BRUSSELS, Oct 13 (Reuters)Global finance leaders on Tuesday said the world economy had escaped a coronavirus-triggered collapse so far, but warned that failure to conquer the pandemic, maintain stimulus and tackle mounting debt among poor nations could crush a fragile recovery.

At the start of the annual meetings of the International Monetary Fund and World Bank, the IMF issued slightly improved growth forecasts spurred by unexpectedly stronger rebounds from coronavirus lockdowns in the wealthiest countries and China.

The IMF said it now expected global gross domestic product to shrink 4.4% in 2020, compared to the 5.2% contraction it predicted in June, when business closures were at their peak. Some $12 trillion in stimulus supplied largely by advanced economies limited the damage, but poor countries and other emerging market economies faced a worsening picture, the global lender said.

“The story is

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CURO Is More Than Just A Stimulus Play (NYSE:CURO)

Investors, mainly on fears that have failed to materialize, have thrown away CURO Group Holdings Corp. (NASDAQ: CURO), like many other financial companies catering to the sub-prime borrowers. In the meantime, the core business is starting to come back and Katapult, in which CURO owns a minority stake, continues to perform well.

No doubt, the business faces some risks, ranging from an economic slowdown that may lead to a rise in delinquencies amid deteriorating creditworthiness of the borrowers it serves to taper off of stimulus that has helped the borrowers in the US to bridge the lockdown driven economic collapse. Longer term, there is a risk of increasing interest rates leading to higher cost of borrowing, similar to any other financial institution.

But these risks are more than offset by favorable dynamics of the sub-prime lending industry in general that has benefited immensely from the stimulus package provided

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Asian Stocks Set to Rise as Tech, Stimulus Hopes Fuel Global Rally | Investing News

NEW YORK (Reuters) – Asian stocks were set to rise on Tuesday as a renewed tech rally and fresh optimism that Washington would deliver a coronavirus relief package helped lift global equity markets.

Shares in Apple Inc

surged 6.4% on Wall Street on Monday ahead of an expected debut of its latest iPhone on Tuesday, helping boost technology stocks, while Amazon

rallied 4.8% ahead of its Prime Day shopping event this week.

CommSec Senior Economist Ryan Felsman said a COVID-19 resurgence in Europe and the United States is partly fueling the tech rally.

“Once again, there is a desire to hold the stay-at-home types of technology stocks…which will still generate profits and will be greatly oriented to a more challenging economic environment,” Felsman said.

On Wall Street, the Nasdaq Composite <.IXIC> on Monday staged its biggest one-day rally in a month, jumping 2.56%. The Dow Jones Industrial Average <.DJI> rose

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Will Michiganders see federal stimulus money before the election?

President Donald Trump halted negotiations for a coronavirus stimulus bill last week, but has changed his tune in the days since, once again encouraging Congress to make a deal.

Meanwhile, Michigan residents and businesses sit idle, pleading for federal help.

“For small businesses to survive, we need immediate and direct financial support,” said Gricelda Mata, CEO of Lindo Mexico Restaurante near Grand Rapids. “That’s why it’s so frustrating to see the president of the United States cease negotiations until after the election.”

Trump argued in an Oct. 6 that the Democrats weren’t negotiating in good faith, saying “I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major stimulus bill that focuses on hard-working Americans and small business.”

Within minutes, the stock market took a hit. Stock prices recovered the next morning after Trump tweeted overnight his renewed

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Dollar lower as investors now believe US economic stimulus will be reached after Nov. 3 election

TOKYO – The dollar flirted with three-week lows on Tuesday as investors stuck to hopes that there will be large U.S. fiscal stimulus after the Nov. 3 election to shore up a pandemic-hit economy, supporting riskier currencies.

The dollar index stood at 93.036, just above Friday’s near-three-week low of 92.997. The euro traded at $1.1841, having gained 0.60% on Monday.

“It seems there is a strong optimism that eventually there will be stimulus. It is hard to argue against fiscal expansion given the coronavirus epidemic is almost like a natural disaster,” said Makoto Noji, chief currency and foreign bond strategist at SMBC Nikko Securities.

DOLLAR’S RECENT DIRECTION POINTS TO BIDEN WIN

While markets are getting sceptical about the chances of having a bipartisan package before the election, a widening lead by Democratic presidential candidate Joe Biden over

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GLOBAL MARKETS-Asian stocks set to rise as tech, stimulus hopes fuel global rally

By Suzanne Barlyn

NEW YORK, Oct 12 (Reuters)Asian stocks were set to rise on Tuesday as a renewed tech rally and fresh optimism that Washington would deliver a coronavirus relief package helped lift global equity markets.

Shares in Apple Inc AAPL.O surged 6.4% on Wall Street on Monday ahead of an expected debut of its latest iPhone on Tuesday, helping boost technology stocks, while Amazon AMZN.O rallied 4.8% ahead of its Prime Day shopping event this week.

CommSec Senior Economist Ryan Felsman said a COVID-19 resurgence in Europe and the United States is partly fueling the tech rally.

“Once again, there is a desire to hold the stay-at-home types of technology stocks…which will still generate profits and will be greatly oriented to a more challenging economic environment,” Felsman said.

On Wall Street, the Nasdaq Composite .IXIC on Monday staged its biggest one-day rally in a month, jumping

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World stocks zoom to 5-week highs on economic, stimulus hopes

By Koh Gui Qing

Oct 12 (Reuters)Global stocks scaled five-week highs on Monday on hopes that more government stimulus was coming and the world economy was on the mend, while the Chinese yuan retreated from a 17-month high after a policy move over the weekend.

Investor optimism that Washington will work through talks that have repeatedly stalled to deliver another round of fiscal stimulus drove major U.S. stock indices to highs last seen in early September.

Hopes that the top Wall Street banks will announce a decent set of third-quarter earnings this week that show business activity was not as weak as feared also helped.

Slugged by stronger investor demand for risk, the U.S. dollar was pinned near a three-week low and gold, another safe-haven asset, stayed below a three-week high. The U.S. bond market is closed on Monday for Columbus Day.

The cheer over the economic

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GLOBAL MARKETS-Earnings, stimulus hopes keep U.S. stocks buoyant, oil dips

Dow up 0.94%, S&P 500 up 1.41%, Nasdaq up 2.09%

Oct 12 (Reuters)U.S. stocks climbed on Monday as investors looked to Washington to unveil more fiscal stimulus to aid the economy and hoped that Wall Street’s largest banks would post decent quarterly earnings later this week.

Optimism that more U.S. stimulus was in the offing came in spite of indications that talks in Washington had stalled again, leading the Trump administration to call on Congress to pass a less ambitious coronavirus relief bill.

U.S. President Donald Trump on Friday had offered a $1.8 trillion coronavirus relief package after urging his team on Twitter to “go big” in negotiations with the Democrats to reach a deal.

Edward Moya, a senior market analyst at OANDA, a currency broker, said despite the uncertainty of stimulus negotiations, investors were hopeful that banks would announce earnings that suggest the economy is not

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