Dow index, yesterday renewed its all-time high - 21.10.2021

Todays’ Market Summary

On Wednesday, the US dollar index dropped for the 2nd day in a row.
Yesterday US stock indices S&P 500 and Dow rose.
Yesterday, world oil prices rose for the second day in a row.
Gold quotes rose on the back of the fall in the US dollar index.

Top daily news

Yesterday, the US stock indexes S&P 500 and Dow rose. Moreover, the Dow managed to renew its historical maximum. To date, only about 15% of American companies have reported for the 3rd quarter. However, their performance was good. Refinitiv has raised its forecast for the increase in the total profit of companies from the S&P 500 list to 33%. The index itself has grown by 32% in 12 months. Today, oil is correcting downward after some importing countries approached OPEC + with a request for a more significant increase in production.
Forex news

Currency Pair Change

EUR USD: -0.11%

AUD USD: -0.41%

GBP USD-: 0.15%

On Wednesday, the US dollar index dropped for the 2nd day in a row. This happened in spite of the positive economic outlook for the Federal Reserve System Beige Book. It noted a slight acceleration in the growth of the American economy as the Covid-19 epidemic subsided. Another good factor for the US currency was the statement by the Fed Governor Randal Quarles that it is time for the Fed to cut its asset repurchase program, but the rate hike (+ 0.25%) is still premature. Investors now expect the US regulator to raise rates twice next year. The rate of the American currency yesterday completely ignored all this positive and fell against the background of the powerful growth of bitcoin to $ 67,000. Bitcoin is correcting downward this morning and the US dollar index has started to rise. Most likely, the relationship between their quotes will soon cease, as the excitement around the crypto ETF will pass. In the US today economic data will be published: unemployment for the week (Initial Jobless Claims), Philadelphia Fed Manufacturing Index (activity in the industry from the Federal Reserve Bank of Philadelphia), Existing Home Sales (sales in the secondary market of residential real estate). Forecasts are neutral. The British pound is weakening today. Good data on the decline in inflation (+ 3.1%) in Britain in September slightly lowered the likelihood of a rate hike by the Bank of England at its meeting on November 4.

Stock Market news

Indices Change

Dow Jones Index: +0.43%

S&P 500: +0.37%

Nasdaq 100: -0.05%

US Dollar Index: +0.17%

Yesterday US stock indices S&P 500 and Dow rose. Moreover, the Dow managed to renew its historical maximum. Tesla’s earnings were positive, but its stock gained very modest 0.2% as investors fear a chip shortage could cut car production in the fourth quarter. The Nasdaq Index declined slightly due to weak quarterly reporting by computer company IBM (-4.3%) and medical Biogen (-0.6%). IBM released its financials after the close of yesterday’s trading (After Hours), so investors continue to react to them today. Futures on US stock indices are now declining. An additional negative was the next problems with the redemption of bonds from China Evergrande Group (-13.2%) and the decline in Asian stock indices Hang Seng (-0.9%) and Nikkei (-1.9%). Quarterly financials for PayPal, Intel, AT&T and others are due in the US today. Note that the quotes of the PayPal payment system yesterday fell by almost 5% after the announcement of its purchase by Pinterest (+ 12.8%) for $ 45 billion.

Commodity Market news

Commodities Change

WTI Crude: -0.67%

Brent Crude Oil: -0.91%

COPPER: -2.16%

Yesterday, world oil prices rose for the second day in a row. U.S. The Energy Information Administration unexpectedly announced a 431,000 barrels cut in inventories last week. Oil is getting cheaper this morning thanks to the statements of the representatives of the largest importing countries: the Minister of Oil of India and the Prime Minister of Japan. They expressed concern about high prices and called on OPEC + to increase production above the planned level of 400 thousand barrels per day (bpd). The next OPEC + meeting will take place on November 4. It will discuss oil production in December. Earlier, the countries of the cartel have already agreed on a monthly increase in production by 400 thousand bpd until March or September 2022. Importers are asking to increase this limit as soon as possible. High oil prices have triggered an increase in the demand for biofuels. The United States Department of Agriculture (USDA) reported that its production in the United States increased to its highest since 2018 and reached 1.1 million bpd. This may increase the price of corn, which is a raw material for biofuels (ethanol).

Gold Market News

Metals Change

Gold: -0.04%

Silver/US Dollar: -0.73%

Gold quotes rose on the back of the fall in the US dollar index. Palladium fell in line with the Norilsk Nickel forecast we mentioned in previous reviews. Norilsk Nickel added negative news to palladium yesterday, announcing that it increased its production in the third quarter of this year by 9% to 598 thousand ounces. It also boosted platinum production by 8% to 145,000 ounces. The highest growth among precious metals was shown by silver, which is used in green energy and electric vehicles. For 2 days, Tuesday and Wednesday, silver has risen in price by more than 5%.