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Here’s what you need to know before markets open.
1. Mohamed El-Erian says investors should prepare for slower economic recovery and not expect ‘US lawmakers to come to the rescue’. Investors need to wake up to the reality that the economic recovery will take longer to take place and they shouldn’t overly rely on US lawmakers, Mohamed El-Erian said, in an opinion piece in the Financial Times on Monday.
2. The US economy has a ‘good chance’ to see more stimulus before the presidential election, a fund manager says. Revived discussions over a new $2.2 trillion US stimulus deal unveiled by House Democrats represents a fresh effort to “likely get something done” before the presidential election, Michael Cuggino of Permanent Portfolio Family of Funds told CNBC on Tuesday.
3. Warren Buffett’s Berkshire Hathaway discloses Snowflake stake, confirming a rapid $800 million gain. Warren Buffett’s Berkshire Hathaway officially disclosed its stake in Snowflake on Monday, confirming it has scored a $800 million gain on its investment in the cloud-data platform.
4. 4 reasons why the stock market will be volatile throughout October. And 3 reasons why this presents opportunities, Evercore says. US political tensions are expected to be a significant contributor to stock market volatility. Tensions have started to rise in recent days and there is an expectation they will intensify until and possibly after election day on November 3.
5. 'We are going to see some big shifts in the coming 3 to 6 months': Investing pioneer Rob Arnott sounds the alarm on 'quite a few bubbles' in the market, including the tech boom — and tells us where he is finding bargains now. Rob Arnott has been practicing what he calls "sensible social distancing" these days.
6. BANK OF AMERICA: Buy these 11 stocks to profit as e-commerce and robotics revolutionize their businesses and keep them growing faster than peers. Bank of America says $1 trillion might be up for grabs thanks to the trade war and rapid changes in technology, and it's giving investors a heads up about some of the biggest winners.
7. Markets can 'sleep through' the US presidential debate as the event is unlikely to produce bold new initiatives, UBS says. The US presidential debates are unlikely to produce "anything of substance" since bold new policy initiatives are usually not announced at televised debates, Paul Donovan, global chief economist at UBS Global Wealth Management said on Tuesday.
8. Stocks, oil and the dollar fall ahead of presidential debate, while coronavirus death toll hits 1 million. Stocks fell in Europe on Tuesday, as investors ditched riskier assets, such as industrial commodities and took some profit on the dollar's two-month highs ahead of the first of three presidential debates later in the day and as the global coronavirus death toll passed 1 million.
9. Earnings coming in. Carnival Corp and Market Q3 2020 earnings are due.
10. On the economic front. The Fed's Williams speech is due and the first presidential debate between Republican Donald Trump and Democratic Joe Biden is taking place later.