Opening Bell: U.S. Futures, Global Stocks Rise; Oil Falls; Gold Pushes Higher
Investing.com | Oct 12, 2020 08:01
- Stimulus hopes in the US continue boosting markets
- China's economic recovery along with reduced yuan regulation is adding to the optimism
- Oil falls on increased supply to retest $40
- Coronavirus cases in Europe continue to escalating h2 Key Events/h2
- U.K. Prime Minister Boris Johnson has set a deadline of Thursday to thrash out the outline of a future trade deal with the European Union, ahead of the U.K. leaving the EU at the end of this year.
- This week is the start of the US Q3 earnings season with results from banks such as JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), and healthcare giant Johnson & Johnson (NYSE:JNJ) upcoming.
- IMF/World Bank meetings continue.
- Futures on the S&P 500 Index gained 0.1%.
- The Stoxx Europe 600 Index rose 0.2%.
- The MSCI AC Asia Pacific Index climbed 0.7%.
- The MSCI Emerging Markets Index increased 1%.
- The Dollar Index was little changed at 93.10.
- The euro decreased 0.1% to $1.1816.
- The British pound rose 0.1% to $1.3049.
- The Japanese yen strengthened 0.1% to 105.48 per dollar.
- The yield on 10-year Treasuries was unchanged at 0.77%.
- The yield on two-year Treasuries was steady at 0.15%.
- Germany’s 10-year yield dipped two basis points to -0.54%.
- Britain’s 10-year yield decreased one basis point to 0.269%.
- West Texas Intermediate crude dipped 1.1% to $40.08 a barrel.
- Gold weakened 0.2% to $1,927.16 an ounce.
- LME copper fell 0.3% to $6,750 per metric ton.
US futures, including for the S&P, Dow Jones and NASDAQ, as well as European stocks followed Asia higher on Monday as positive eased regulations on shorting the yuan. The central bank removed the requirement that financial institutions have to set aside 20% of the previous month’s yuan forward settlement amount as foreign exchange risk.
US indices, including the Dow and Russell 2000 climbed Friday for the third day in a row, sealing in the biggest weekly gain since early July, after President Donald Trump said he wanted a bigger stimulus package than the $2.2 trillion that Congressional Democrats have been fighting for.
That about-face followed the president tweeting earlier last week that negotiations between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin should stop until after the Nov. 3 presidential election. On Saturday, the White House flip-flopped yet again, saying it wanted the aid package to come in at $1.8 trillion. Updates on negotiations are expected to continue dominating markets for the coming weeks.
The S&P 500 completed a H&S bottom ending the index's short-term downtrend.
The move implies a target that exceeds the Sept. 2 all-time high.
Bond markets are closed for the Columbus Day holiday in the US. Yields finished Friday little changed, after Treasuries, including the 10-year note, whipsawed between gains and losses.
The dollar appears to have ended its short-term uptrend.
The greenback is resuming its medium-term downtrend, in place since the March highs.
Gold may have extended an upside breakout to a bullish rising wedge, though it might still resume a downward path according to its current rising flag and its preceding bearish symmetrical triangle.
A break above $1,950 would increase the chances that the bulls will have the final say.
Bitcoin climbed for a sixth straight day, upending a bearish pattern.
This may lead the cryptocurrency to another, larger top—confirming a massive H&S bottom since Aug. 19.
Oil fell and is retesting $40 with supply constraints easing. Libya’s largest oil field is expected to return to full capacity in 10 days.
The return of operations in the US Gulf of Mexico after Hurricane Delta, has raised the prospect of further supply. Oil’s fall from the Sept. 18 highs increases the chances of a continuation pattern, to extend the decline following the bearish rising wedge.
Up Ahead/h2
Market Moves/h2 Stocks/h3
Currencies/h3
Bonds/h3
Commodities/h3
Stocks/h3
Currencies/h3
Bonds/h3
Commodities/h3
Bonds/h3
Commodities/h3
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.