Todays’ Market Summary
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The US dollar index dropped on Tuesday.
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Yesterday, US stocks rose thanks to good third-quarter reporting by Johnson & Johnson (+ 2.3%), a manufacturer of the Covid-19 vaccine.
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World oil prices hit their recent highs this morning, but are now correcting slightly downward.
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Gold quotes are rising today for the second day in a row on the back of the fall in the US dollar index.
Top daily news
On Tuesday, the US dollar index dropped due to unexpectedly weak data on the residential real estate market in September. For now the dollar has won back some of the losses thanks to the 10-Year Bond rise in US yields. Yesterday, US stocks rose on strong third-quarter reporting from Johnson & Johnson. Today, their dynamics can be influenced by the reporting of the electric car manufacturer Tesla. The Chinese authorities are going to make every effort to reduce energy prices for the domestic market. Warm and windy weather forecasts in Europe could reduce the demand for natural gas.
Forex news
| Currency Pair | Change |
|---|---|
| EUR USD | -0.1% |
| GBP USD | -0.17% |
| USD JPY | +0.03% |
The US dollar index dropped on Tuesday. This was facilitated by unexpectedly weak data on the residential real estate market in September and, possibly, the start of trading in ETFs for Bitcoin. Housing Starts and Building Permits have declined much more than expected. In addition, Richmond Fed President Thomas Barkin said the labor shortage could slow US economic growth if the government does not improve childcare, education and health care. These improvements may require additional budgetary costs. At the end of the day, the dollar won back some of the losses thanks to the growth of the US 10-Year Bond yield to a 5-month high of 1.672% per annum. Investors are confident that at a meeting on November 3, the Fed will announce a reduction in the volume of redemption of government and mortgage bonds by $ 15 billion per month. The Fed is now buying back these bonds for $ 120 billion a month, mainly through the issuance of the dollar. The Federal Reserve System Beige Book will be published in the US today. In Britain, the Eurozone and Canada, there are important inflation data for September. They can affect the rates of the respective currencies. They are strengthening slightly against the US dollar this morning. Today the price of bitcoin has increased, but has not yet been able to renew its historical maximum, which was in mid-April of this year. Yesterday, the ProShares Bitcoin Strategy ETF began trading on the New York Stock Exchange. Taking into account over-the-counter trading (After Hours), it grew by about 5%. Bitcoin itself has risen in price less - by 3.5%. In theory, a Bitcoin correction could support the dollar in the short term. However, it is still difficult to say whether there will be a noticeable correlation between them.
Stock Market news
| Indices | Change |
|---|---|
| Dow Jones Index | +0.56% |
| S&P 500 | +0.74% |
| Nasdaq 100 | +0.71% |
| US Dollar Index | +0.13% |
Yesterday, US stocks rose thanks to good third-quarter reporting by Johnson & Johnson (+ 2.3%), a manufacturer of the Covid-19 vaccine. In addition, against the backdrop of the start of ETF trading for Bitcoins, shares of IT companies rose in price: Apple (+ 1.5%), Facebook (+ 1.4%) and Microsoft (+ 0.3%). Facebook has created a new crypto wallet Novi, in collaboration with crypto exchange Coinbase (+ 4.2%). The social network may rebrand in connection with the development of a new product - the metaverse. Netflix’s financials were neutral (+ 0.2%). Bank Goldman Sachs raised its recommendation on Walmart shares (+ 2.1%). Pharmaceutical companies Merck (+ 3%) and Pfizer (2%) rose after failed testing of a new coronavirus drug developed by their rival Atea Pharmaceuticals (-65%). Quarterly reports of large companies will be published in the US today: Tesla, Verizon, IBM, Biogen and others. Futures for US stocks are now declining as investors fear that a shortage of computer chips and other microcircuits could have a negative impact on Tesla’s electric vehicle sales.
Commodity Market news
| Commodities | Change |
|---|---|
| WTI Crude | -0.97% |
| Brent Crude Oil | -0.96% |
| COPPER | -1.05% |
World oil prices hit their recent highs this morning, but are now correcting slightly downward. Yesterday they rose despite the announcement of the American Petroleum Institute on the increase in oil reserves in the United States for the week by 3.3 million barrels. Today, an additional negative for hydrocarbon quotes was the announcement of China’s National Development and Reform Commission (NDRC) about plans to stimulate an early increase in coal production in the country to 12 million tons per day. This is 1.6 million tons per day more than the September level. The Chinese authorities are going to make every effort to reduce energy prices for the domestic market. Natural gas quotes may continue to decline amid forecasts of warming and strong winds in Europe. This could increase energy production from wind farms and reduce demand for heating gas. Another negative factor for gas quotes may be the launch of the new Nord Stream 2 gas pipeline.
Gold Market News
| Metals | Change |
|---|---|
| Gold | +0.31% |
| Silver/US Dollar | +0.01% |
Gold quotes are rising today for the second day in a row on the back of the fall in the US dollar index. Today’s data on inflation in the EU, Britain and Canada may affect the price of precious metals, if they help investors predict tightening of monetary policy by the central banks of these countries. Market participants now believe that the Fed may raise the rate for the first time in September 2022. However, the Central Banks of other countries, and especially the European Central Bank (ECB), may do this earlier. The ECB rate is now 0%, while the Fed and Bank of Canada rates are higher at 0.25%. The Bank of England rate is also less than that of the Fed and is equal to 0.1%.