Todays’ market summary
The US dollar index declines today for the second time in a row.
On Friday, the US stock market was mixed.
Today, world oil prices continued to rise.
Gold quotes are rising today for the 5th day in a row on the back of the fall in the US dollar index.
Top daily news
The US dollar index is declining today, for the second time in a row. This is happening in contrary to the statement by Federal Reserve Chairman Jerome Powell that his department should begin to reduce the volume of buybacks of government and mortgage bonds. Shares in computer processor maker Intel tumbled nearly 12% on weak quarterly earnings. U.S. West Texas Intermediate (WTI) renewed its 7-year high and approached $ 85 per barrel due to several positive factors at once.
The US dollar index declines today for the second time in a row. This is happening in contrary to a statement by Federal Reserve Chairman Jerome Powell that his department should begin to reduce the volume of buybacks of government and mortgage bonds. Now it is $ 120 billion per month. At the same time, the FRS rate hike (+ 0.25%) may begin in the second half of next year. Macroeconomic data disappointed investors on Friday. The indicator of activity in the American industry Markit Manufacturing PMI Flash for October turned out to be worse than forecast and fell to 59.2 points. Similar indicators in Germany and the Eurozone exceeded forecasts in October and amounted to 58.2 and 58.5. This contributed to the strengthening of the euro, despite the fact that they were lower than in the US. The Coincident Index and the Leading Economic Index were released this morning in Japan. They turned out to be worse than the forecast. This contributed to a slight weakening of the yen. Bitcoin maintained its $ 60,000 support level on Friday. Today bitcoin is becoming more expensive, which may become another negative factor for the US dollar.
Stock market news
|Dow Jones Index||+0.21%|
|US Dollar Index||-0.13%|
On Friday, the US stock market was mixed. PC processor maker Intel shares plummeted nearly 12% on weak quarterly earnings. This contributed to the decline in the S&P 500 and Nasdaq indices. The Dow rose and hit a new all-time high thanks to strong reporting by American Express (+ 5.4%). This payment system works with cryptocurrency exchanges such as FalconX. Refinitiv raised its forecast for the total profit of companies from the S&P 500 listing in the 3rd quarter to + 34.8%. Quarterly financials for Facebook, Kimberly-Clark and other companies are due out today in the US. Facebook quotes on Friday plummeted 5% amid internet problems with the Snapchat photo service. Snap Inc shares plunged nearly 26%. No significant economic information is expected to be released in the US today.
Commodity market news
|Brent Crude Oil||+0.73%|
Today, world oil prices continued to rise. U.S. West Texas Intermediate (WTI) hit a new 7-year high and approached $ 85 a barrel. Several factors contributed to this. U.S. Commodity Futures Trading Commission announced an increase in positions to buy oil futures and options (net long). Oilfield services company Baker Hughes reported a weekly cut in the number of US oil and gas rigs for the first time in 7 weeks. This was very unexpected, since against the backdrop of a strong growth in quotations, an increase in hydrocarbon production in the United States was expected. Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman has called on OPEC + to be careful in managing oil supplies to the global market. Investors decided that the cartel will keep the schedule of monthly production increase by 400 thousand barrels per day unchanged. Saudi Arabia's opinion has already been supported by Nigeria and Azerbaijan. Construction company China Evergrande Group has paid off part of its debt. This significantly reduced the risks of a large-scale economic crisis in China. This supported the rise in oil and copper prices.
Gold market news
Gold quotes are rising today for the 5th day in a row on the back of the fall in the US dollar index. Precious metals prices are supported by new forecasts for further increase in US inflation. In October, it may grow to + 5.6% in annual terms compared to + 5.3% in September. The data will be released on November 10. Note that on Friday, inflation rose in Japan and Mexico. The Fed's plans to reduce bond redemption through money emission contributed to a decrease in positions to buy (net long) gold for the week. This was reported by the U.S. Commodity Futures Trading Commission.
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