European stocks and U.S. equity futures were dropping on the last trading day of the month and quarter, with investors rattled by U.S. politics after a messy presidential debate, and rising coronavirus cases.
Down 0.4% on Wednesday, the Stoxx Europe 600 index SXXP,
Dow futures YM00,
What has been described as an acrimonious and chaotic debate between President Donald Trump and Democratic contender Joe Biden late Tuesday probably didn’t change the minds of undecided voters, analysts said.
“If anything the betting markets have moved slightly in the direction of Joe Biden and U.S. futures moved lower,” said Ian Williams, economics and strategy analyst at Peel Hunt, in a note to clients.
Futures losses may reflect fears that a Biden win will mean higher corporate taxes, which could be a negative for the stock market. Meanwhile, investors will closely watch last-ditch efforts by U.S. lawmakers to get a coronavirus fiscal stimulus package passed.
Read: Here’s how the stock market tends to perform after the first presidential debate
Elsewhere, data showed China’s economic recovery following its coronavirus outbreak earlier in the year picked up the pace. The official manufacturing purchasing managers index rose to 51.5 in September, beating forecasts and August’s reading of 51.0, The service sector also rebounded with a strong September.
Europe continues to struggle with rising coronavirus cases, in what some are calling a second wave. The U.K. recorded the largest-ever rise in new cases on Tuesday, with a jump in deaths.
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