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Europe markets updates on 27/10/2020

Euro gains on weaker Dollar, U.S. stimulus doubts, European shares dips,gold gains, Oil rises towards $41 on U.S. gulf shutdowns, outlook weak-october 27th,2020

Market Roundup

• Finnish Oct Consumer Confidence  -6.9,-5.9 previous

•French Sewp PPI (MoM)  0.2%,0.1% previous

•Spanish Unemployment Rate (Q3) 16.26%, 15.90% forecast, 15.33% previous

•EU Private Sector Loans (YoY) 3.1%,3.0% previous

•EU Sep Loans to Non Financial Corporations  7.1%,7.1% previous

•EU Sep M3 Money Supply (YoY)  10.4%, 9.6% forecast, 9.5% previous

•France Jobseekers Total 3,606.3K, 3,621.5K previous

•UK Oct CBI Distributive Trades Survey  -23, 1 forecast,11 previous

•US Sep Core Durable Goods Orders (MoM) 0.8%,0.4% forecast,0.6% previous

•US Sep Durable Goods Orders (MoM) 1.9%, 0.5% forecast, 0.5% previous

•US Sep Durables Excluding Defense (MoM)  3.4%,0.9% previous

•US Sep Goods Orders Non Defense Ex Air (MoM) 1.0%, 0.5% forecast, 1.9% previous

Looking Ahead - Economic events and other releases (GMT)

•12:55 US Redbook (YoY) 2.5% previous

•12:55 US Redbook (MoM) 1.0% previous

•13:00 US Aug S&P/CS HPI Composite - 20 s.a. (MoM)  0.5% forecast, 0.6% previous

•13:00 US Aug S&P/CS HPI Composite - 20 n.s.a. (YoY)  4.2% forecast, 3.9% previous

•13:00 US Aug S&P/CS HPI Composite - 20 n.s.a. (MoM)   0.5% forecast, 0.6% previous

•13:00 US Aug House Price Index  293.0 previous

•13:00 US Aug House Price Index (YoY)  6.5% previous

•14:00 US Oct Richmond Manufacturing Index  21 previous

•14:00 US Oct Richmond Manufacturing Shipments  13 previous

•14:00 US Oct Richmond Services Index  6 previous

•14:00 US Oct CB Consumer Confidence  102.0, 101.8 previous

•14:00 US Texas Services Sector Outlook  11.5 previous

•14:30 US Oct Dallas Fed Services Revenues 14.0 previous

Looking Ahead - Economic events and other releases (GMT)

• No significant events

Fx Beat

EUR/USD: The euro held ground against dollar on Tuesday as the continued rise in coronavirus cases and the lack of progress on U.S. stimulus kept investors cautious before Thursday’s European Central Bank meeting. At the ECB meeting, the bank is not expected to change its policy, but investors will watch for hints on how likely it is to add to its bond purchases in December. After initially falling, the euro was up 0.1% by 1230 GMT to $1.1828. Immediate resistance can be seen at 1.1835 (38.2%fib), an upside break can trigger rise towards 1.1872 (Higher BB).On the downside, immediate support is seen at 1.1789 (50%fib), a break below could take the pair towards 1.1700 (Psychological level).

GBP/USD: Sterling edged higher against the dollar on Tuesday as hopes grew that British and European negotiators might be able to salvage post-Brexit trade talks. On Monday, the EU’s chief negotiator, Michel Barnier, said he would be in London until Wednesday to negotiate a deal, after which talks will switch to Brussels. Apart from Brexit, Britain is grappling with a weak economy battered by the coronavirus. Negative interest rates have not been ruled out, another hurdle the currency can ill afford. Immediate resistance can be seen at 1.3091  (23.6%fib), an upside break can trigger rise towards 1.3195 (23.6%fib).On the downside, immediate support is seen at 1.3002  (50%fib), a break below could take the pair towards 1.2912 (61.8%fib).

USD/CHF: The dollar was little changed against the Swiss franc on Tuesday as soaring global coronavirus cases and slow progress on a U.S. stimulus deal hammered investor sentiment. The United States has seen record COVID-19 infections, while in France authorities are looking at options for tighter lockdown measures as the virus has kept spreading despite some of the tightest restrictions in Europe.In Italy, there were protests against lockdown restrictions on Monday, with violence reported in Milan and Turin.A lack of progress towards U.S. fiscal stimulus also dampened sentiment. Immediate resistance can be seen at 0.9093 (14 DMA), an upside break can trigger rise towards 0.9129(50%fib).On the downside, immediate support is seen at 0.9044 (23.6%fib), a break below could take the pair towards 0.9000 (Psychological level).

USD/JPY: The dollar declined against the Japanese yen on Tuesday, as investors sat on the sidelines ahead of next week’s U.S. election.   Monday saw the steepest stock market sell-off in a month and a bond rally, but foreign exchange market activity has remained relatively muted, with price moves in early Tuesday limited. Investors were clearly cautious after the United States, Russia and France all hit new daily records for coronavirus infections. The yen, which investors tend to flock towards when nervous gained ground against dollar. Strong resistance can be seen at 104.73 (38.2% fib), an upside break can trigger rise towards 105.05 (50%fib).On the downside, immediate support is seen at 104.49 (Lower BB), a break below could take the pair towards 104.32 (23.6%fib).

Equities Recap

European stocks slipped on Tuesday after sharp declines in the previous session, as weakness in miners and automakers offset upbeat results from UK blue-chip companies HSBC and BP.

At (GMT 12:30),UK's benchmark FTSE 100 was last trading down at 0.08 percent, Germany's Dax was down by 0.22 percent, France’s CAC was last down by 0.77 percent.

Commodities Recap

Gold prices rose on Tuesday as a weaker dollar and a fresh wave of coronavirus infections threatened to further slow down a global economic recovery from the COVID-19 pandemic, bolstering bullion’s safe-haven appeal.

Spot gold was 0.1% higher at $1,903.16 per ounce by 0801 GMT.U.S. gold futures were steady at $1,906.50.

Oil rose on Tuesday towards $41 a barrel as oil companies shut down some U.S. Gulf of Mexico oil output due to a hurricane, although surging coronavirus infections and rising Libyan supply limited gains.

Brent crude  was up 41 cents, or 1%, at $40.87 per barrel by 1124 GMT. U.S. oil  gained 38 cents, or 1%, to $38.94. Both contracts fell more than 3% on Monday.

Source: FXWire

Wall Street Breakfast: Election, Coronavirus, Earnings, Stimulus

Election, coronavirus, earnings, stimulus

Concerns about COVID-19 infection rates appear to have come back to the fore for markets as average daily cases hit a record high in the U.S., just days away from the presidential election. Wall Street sold off on Monday, led by a decline in energy, industrial stocks and other cyclicals, prompting the Dow to slide 650 points to record its worst week since September. Echoing the weakness, compounded with little hope of a stimulus package from Washington, U.S. stock index futures hugged the flatline in the overnight session. "To me, this is Phase 2 of the pandemic," said Frank Rybinski, chief macro strategist at Aegon Asset Management. "Until we get some eradication of the virus, it's going to be like a gray cloud."

Third quarter reports

More than one third of the S&P 500 index components, or 186 companies, are set to report Q3 results this week, including some of the top names in the index. Today's lineup includes manufacturing behemoth's 3M (NYSE:MMM) and Caterpillar (NYSE:CAT), healthcare giants Pfizer (NYSE:PFE), Eli Lilly (NYSE:LLY) and Merck (NYSE:MRK), as well as tech titans Microsoft (NASDAQ:MSFT) and AMD (NASDAQ:AMD). Sideshow? While net earnings are surprising to the upside, with the exception of a few misses, the market seems laser focused on the election, COVID-19 and any news related to stimulus talks.

Hopes dim for stimulus deal

A coronavirus aid package before the election is looking less likely by the day as the Senate adjourned after confirming Amy Coney Barrett's nomination for the U.S. Supreme Court. Members will now be allowed to leave the capital and join their House counterparts on the campaign trail, where the representatives have been since early October. House Speaker Nancy Pelosi still remains "optimistic" about a pre-election deal following Monday's phone call with Treasury Secretary Steven Mnuchin, but is still waiting on the White House to accept "language around Covid-19 testing."

Data center push

Intensifying its battle with Intel (NASDAQ:INTC) in the data center chip market, Advanced Micro Devices (AMD) has agreed to buy Xilinx (NASDAQ:XLNX) in a $35B all-stock deal. The tie-up would create a combined firm with 13,000 engineers, with a nimble manufacturing strategy that relies heavily on Taiwan Semiconductor Manufacturing (NYSE:TSM). Since taking over AMD in 2014, Lisa Su has focused on data centers that power internet-based applications and services, which have fueled the rise of artificial intelligence and 5G telecom networks. AMD -4.5%; XLNX +10.2% premarket.

Overnight earnings roundup

HSBC (NYSE:HSBC) soared nearly 7% after the bank beat estimates and signaled it may resume limited dividend payments, as well as accelerating a restructuring plan. On the energy front, BP (NYSE:BP) swung back to profit, with the stock climbing 2% in premarket trade amid a "continuing oil demand recovery." Novartis (NYSE:NVS) shares meanwhile went south, falling 2% overnight, after revenues missed expectations, though the drugmaker did lift its full-year forecast.

Blockbuster listing

Ant Group is reportedly planning to stop taking investor orders for the Hong Kong leg of its IPO on Wednesday, a day earlier than scheduled, as the record stock sale has already been heavily subscribed. The potential move would bring the closing in line with the Shanghai leg of its dual offering, which is slated to begin trading on Nov. 5. Putting it in perspective: Ant, which is a third owned by Alibaba (NYSE:BABA), will have a market value of at least $315B, about the same valuation as JPMorgan (NYSE:JPM) and four times larger than Goldman Sachs (NYSE:GS).

Cloud gaming

Facebook Gaming (NASDAQ:FB) is launching cloud-streamed games for the Facebook app and web browser, a move that will expand its content library to include more-complex and multiplayer titles. Its free-to-play model is in contrast to the paid, subscription cloud-gaming services of rivals like Google Stadia (GOOG, GOOGL) and Amazon's Luna (NASDAQ:AMZN). Facebook's service will launch on the desktop web and Android, but not iOS due to terms and conditions of the App Store. "Apple treats games differently and continues to exert control over a very precious resource," reads a blog post.

Adelson may exit U.S. gambling industry

Las Vegas Sands (NYSE:LVS) is exploring the sale of its casinos in Las Vegas, according to Bloomberg, in a deal that would leave Sheldon Adelson focused on Asia. The world’s largest casino company is working with an adviser to solicit interest for the Venetian Resort Las Vegas, the Palazzo and the Sands Expo Convention Center, which are all connected along the city's famous strip and together may fetch $6B or more. Investor attention has focused on its Macau operations of late, but a sale in Nevada may point to trouble for Las Vegas casinos. LVS +1.2% premarket.

Taiwan sales

Not paying any attention to China's recent sanctions, the U.S. State Department has signaled its approval for a potential $2.4B sale of anti-ship missiles to Taiwan. As many as 100 Harpoon Coastal Defense Systems built by Boeing (NYSE:BA) could be shipped. On Monday, Beijing said it would impose sanctions on Boeing's defense unit, Lockheed Martin (NYSE:LMT) and Raytheon (NYSE:RTX) over another $1.8B arms sales to Taiwan, an island with which it has not ruled out the use of force to achieve reunification.

What else is happening...

Eli Lilly (LLY) ends COVID-19 antibody trial after lack of improvement.

Schwab (NYSE:SCHW) begins cutting 1,000 jobs from TD Ameritrade acquisition.

U.S. appeals court rejects immediate WeChat (OTCPK:TCEHY) ban.

Big shakeup at AIG... New CEO and life insurance separation.

Facebook (FB) achieves goal of helping 4M people register to vote.

Smucker (NYSE:SJM) to sell Crisco unit to B&G Foods (NYSE:BGS) for $550M.

Monday's Key Earnings

NXP Semiconductors (NASDAQ:NXPI) +3.1% AH driven by auto and mobile recoveries.
Twilio (NYSE:TWLO) -1.5% AH forecasting wider-than-expected Q4 loss.

Today's Markets

In Asia, Japan flat. Hong Kong -0.5%. China +0.1%. India +1%.
In Europe, at midday, London flat. Paris -1%. Frankfurt -0.4%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq +0.2%. Crude +1.1% to $38.98. Gold -0.2% at $1902.70. Bitcoin -0.9% to $13199.
Ten-year Treasury Yield unchanged at 0.80%

Today's Economic Calendar

8:30 Durable Goods
8:55 Redbook Chain Store Sales
9:00 S&P Corelogic Case-Shiller Home Price Index
9:00 FHFA House Price Index
10:00 Consumer Confidence
10:00 Richmond Fed Mfg.
1:00 PM Results of $54B, 2-Year Note Auction

 

 

Source: Seeking Alpha

Stocks to watch today

Morning Movers

TWLO.NY0.62%
Twillio - The cloud communications site reported a 52% jump in third quarter revenue in its latest quarter but an overall loss from operations of $112.3 million for the third quarter, the number compared to a loss of $94.7 million for the third quarter of 2019. The company reported 208,000 Active Customer Accounts as of September 30, 2020, up 21% year-over-year. Dollar-based net expansion rate, calculated using total revenue, was 137% for the third quarter of 2020. Piper Sandler PT increase.

LLY.NY-4.07%
Elly Lilly - The National Institute of Allergy and Infectious Diseases said late yesterday it will not enroll any more participants in a Phase 3 clinical trial evaluating Eli Lilly's antibody treatment in hospitalized COVID-19 patients due to the low likelihood that it will demonstrate a treatment benefit. Enrollment has been officially closed. The company also reported quarterly results this morning that fell short of analysts' expectations as increased costs to develop COVID-19 treatments and lower demand for some its medicines weighed. Lilly said it expects 2020 COVID-19 research and development expense to be roughly $400 million. Net income fell 4% to $1.21 billion, or $1.33 per share, excluding items, the drugmaker earned $1.54 per share, below analysts' average estimate of $1.71 per share.

AMD.NQ0.57%
AMD - Finalized a previously rumored deal to buy Xilinx for $35 billion in an all-stock deal that will combine the two Silicon Valley chip makers. The deal announced Tuesday puts AMD in a place it wants to be; competing more fiercely with Intel. Xilinx stockholders will receive 1.7234 shares of AMD stock for each Xilinx share they hold, or approximately $143 per share of Xilinx stock. Because of the announcement the company reported earnings early as well saying Q3 revenue hit a record $2.8B beating estimates on both the top and bottom lines. Revenue totaled $1.67B vs. the $1.49B consensus, up 22% Q/Q and 31% Y/Y. The strength was driven by a "significant increase" in Ryzen processor sales.

PFE.NY-0.08%
Pfizer - Reported a third-quarter profit of $2.19 billion. On a per-share basis, the New York-based company said it had profit of 39 cents. Earnings, adjusted for non-recurring costs, came to 72 cents per share. The drugmaker posted revenue of $12.13 billion in the period. Both numbers beat expectations. Pfizer said it expects full-year earnings in the range of $2.88 to $2.93 per share, with revenue in the range of $48.8 billion to $49.5 billion. The company reported a third-quarter profit of $2.19 billion.

HOG.NY9.48%
Harley-Davidson - Reported better than expected results this morning, the motorcycle maker posted EPS of 78 cents per share for the third quarter, well above the consensus estimate of 21 cents a share. Revenue also beat. Profit improved as the company said it continues its current turnaround efforts.

RENEWABLE.ENERGY6.80%
Renewable Energy - The group is back on the move again this morning led by SPI Energy stock that is trading up nearly 40% in the premarket, the company said its board of directors has approved a plan to spin off its Solar Juice subsidiary through an initial public offering. The company will retain majority ownership of Solar Juice after the spin-off. Recent high flyers WWR and SUNW are also higher on the news.

DKNG.NQ1.79%
DraftKings Inc - Back on watch this morning looking to rebound after yesterday's slide, the company announced a long-term agreement extension with MansionBet that will see DraftKings’ B2B technology continue to power the tier one operator’s sportsbook and casino platform, in addition to providing a suite of managed services covering compliance, payments and anti-fraud protocols.

SAP.NY2.79%
SAP AE - The software giant is set to open sharply higher after yesterday's tumble that followed news the company would pull its current quarter and FY sales guidance, the stock tumbled more than 24% yesterday on the news.

PT.NQ8.55%
Pintec Technology - Micro-cap Chinese based IT company announced it has secured about $60m US in new financing through a equity transfer agreement.

ISIG.NQ53.70%
Insignia Systems Inc - The US based micro-cap retail marketing company updated its current quarter financials that were better than expected aftermarket yesterday ahead of earnings due the first week of November.

 

Source: tradertv(daytradetheworld)

Asia markets updates on 27/10/2020

Aussie gains on upbeat Chinese data, greenback eases as investors await U.S. election, Asian shares plunge - Tuesday, October 27th, 2020

Market Roundup

    • Oil steadies amid gloomy outlook
    • Gold prices gain as coronavirus cases surge

Economic Data Ahead

    • (0500 ET/0900 GMT) ECB Bank Lending Survey
    • (0500 ET/0900 GMT) Private Loans (YoY)(Sep)
    • (0500 ET/0900 GMT) M3 Money Supply (3m)(Sep)
    • (0500 ET/0900 GMT) M3 Money Supply (YoY)(Sep)

Key Events Ahead

    • No Significant Events Scheduled

FX Beat

DXY: The dollar index slumped after White House economic adviser Larry Kudlow told reporters that talks over a coronavirus relief package have slowed, though House Speaker Nancy Pelosi remained hopeful an agreement can be reached before the Nov. 3 elections. The greenback against a basket of currencies traded 0.05 percent down at 93.02, having touched a low of 92.47 on Wednesday, its lowest since September 2.

EUR/USD: The euro rose, reversing most of its previous session losses, as the greenback eased amid growing wariness about the U.S. presidential election. The European currency traded 0.2 percent higher at 1.1833, having touched a high of 1.1880 on Wednesday, its highest since September 16. Investors’ attention will remain on a series of economic data from the Eurozone economies, ECB Bank Lending Survey, EZ Private Loans and M3 Money Supply, ahead of the U.S. Durable Goods Orders ex Transportation, Durable Goods Orders ex Defense, Durable Goods Orders, Nondefense Capital Goods Orders ex Aircraft, Housing Price Index, S&P/Case-Shiller Home Price Indices, Richmond Fed Manufacturing Index and Consumer Confidence. Immediate resistance is located at 1.1860, a break above targets 1.1880. On the downside, support is seen at 1.1783 (10-DMA), a break below could drag it below 1.1766 (21-DMA).

USD/JPY: The dollar slumped as market participants tread cautiously ahead of the U.S. election. With eight days to go until the U.S. election, President Donald Trump addressed boisterous rallies in Pennsylvania on Monday, while Biden made a low-key appearance in the state considered crucial to the chances of victory for both men. The major was trading 0.1 percent down at 104.76, having hit a low of 104.34 on Wednesday, its lowest since September 21. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. Durable Goods Orders ex Transportation, Durable Goods Orders ex Defense, Durable Goods Orders, Nondefense Capital Goods Orders ex Aircraft, Housing Price Index, S&P/Case-Shiller Home Price Indices, Richmond Fed Manufacturing Index and Consumer Confidence. Immediate resistance is located at 105.05, a break above targets 105.20. On the downside, support is seen at 104.45, a break below could take it near at 104.08.

GBP/USD: Sterling rose, halting a 3-day losing streak, as an extension to Brexit talks gave markets some cause for optimism about a deal being reached before the Dec. 31 deadline. The major traded 0.05 percent higher at 1.3030, having hit a high of 1.3152 on Wednesday, it’s highest since September 7. Investors’ attention will remain on the geopolitical developments, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.3060, a break above could take it near 1.3082. On the downside, support is seen at 1.2974, a break below targets 1.2958 (21-DMA). Against the euro, the pound was trading 0.2 percent down at 90.82 pence, having hit a high of 90.11 on Wednesday, it’s highest since October 14.

AUD/USD: The Australian dollar gained after data showed profits at China's industrial firms rose for a fifth straight month in September, but at a slower pace as factory-gate deflation and rising raw materials costs undercut a recovery in the manufacturing sector. The Aussie trades 0.1 percent up at 0.7129, having hit a high of 0.7158 on Friday, it’s highest since October 15. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.7160, a break above could take it near 0.7186. On the downside, support is seen at 0.7084, a break below targets 0.7047.

NZD/USD: The New Zealand dollar advanced towards the 0.6700 handle, as the greenback eased across the board. The Kiwi traded 0.1 percent higher at 0.6684, having touched a high of 0.6704 on Friday, its highest level since September 21. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6720, a break above could take it near 0.6737. On the downside, support is seen at 0.6653 (5-DMA), a break below could drag it below 0.6637 (10-DMA).

Equities Recap

Asian shares slumped as soaring global coronavirus cases and slow progress on a U.S. stimulus deal dented risk sentiment.

MSCI’s broadest index of Asia-Pacific shares outside Japan slumped 0.4 percent.

Tokyo's Nikkei fell 0.05 percent to 23,485.80 points, Australia's S&P/ASX 200 index declined 1.7 percent to 6,051.00 points. South Korea's KOSPI declined 0.6 percent to 2,330.84 points.

Shanghai composite index rose 0.1 percent to 3,254.32 points, while CSI 300 index traded 0.2 percent up at 4,699.28 points.

Hong Kong’s Hang Seng traded 0.6 percent lower at 24,780.18 points. Taiwan shares shed 0.3 percent to 12,875.01 points.

Commodities Recap

Crude oil prices steadied after tumbling to a 3-week low in the prior session as a surge in global coronavirus cases hit prospects for crude demand while supply is rising. International benchmark Brent crude was trading 0.7 percent up at $40.76 per barrel by 0603 GMT, having hit a low of $40.20 on Monday, its lowest since October 5. U.S. West Texas Intermediate was trading 0.7 percent higher at $38.83 a barrel, after falling as low as $38.31 on Monday, its lowest since October 5.

Gold prices surged after a fresh wave of coronavirus infections raised concerns over a global economic recovery and bolstered the metal’s safe-haven appeal. Spot gold was trading 0.4 percent higher ar $1,908.99 per ounce by 0611 GMT, having hit a low of $1891.50 on Thursday, its lowest since October 15. U.S. gold futures were up 0.3 percent at $1,911.20.

Treasuries Recap

The U.S. Treasury yields eased, with the benchmark 10-year note yield trading at 0.798 percent and the 30-year yield at 1.591 percent.

Source: FXWire

U.S markets updates on 27/10/2020

Dollar gains in surge in covid cases, U.S. stimulus worries,Wall street closes down,gold slips, Oil drops 3% as virus infections, Lybian Oil output rebound-october 27th,2020

Market Roundup

• US Sep Chicago Fed National Activity 0.27, 0.79  previous

• French 3-Month BTF Auction -0.638%,-0.685% previous

• French 6-Month BTF Auction -0.652%, -0.678% previous

• French 12-Month BTF Auction -0.673%,-0.646% previous

• US Sep New Home Sales (MoM)  2.8% forecast, 4.8% previous

• US Sep New Home Sales 959K, 1,025K forecast, 1,011K previous

• US Oct Dallas Fed Mfg Business Index 19.8,13.6  previous

• US 3-Month Bill Auction 0.100%, 0.100% previous

• US 6-Month Bill Auction 0.110%, 0.115% previous

Looking Ahead - Economic events and other releases (GMT) 

•01:30 Chinese Sep  Industrial profit (YoY)  19.10% previous

•01:30 Chinese Sep Industrial profit YTD  -4.4% previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events

Fxbeat

EUR/USD: The euro declined against dollar on Monday after a survey showed German business morale fell in October. German business morale fell for the first time in six months in October, weighed down by companies’ concerns about rising coronavirus infection rates that are making them more cautious about the coming months. The Ifo institute said its business climate index fell to 92.7 from a downwardly revised 93.2 in September. An index tracking the U.S. dollar against a basket of currencies was last up 0.2% at 92.95. Euro  the most traded currency pair and part of the index fell 0.3% at 1.1831.Immediate resistance can be seen at 1.0827(38.2% fib), an upside break can trigger rise towards 1.0890 (50% fib).On the downside, immediate support is seen at 1.0754 (23.6% fib), a break below could take the pair towards 1.0700 (Psychological level).

GBP/USD: Sterling edged lower against the dollar on Monday as markets turned cautious over new lockdown restrictions in Europe and record-high daily virus cases in the United States. U.S. COVID-19 cases hit record highs over the weekend, with hospitalisations at a two-month high. In Europe, Spain announced a new state of emergency and Italy imposed new lockdown measures to curb a second wave of infections. Immediate resistance can be seen at 1.3072 (Daily high),an upside break can trigger rise towards 1.3092 (23.6%fib)On the downside, immediate support is seen at 1.3016 (50%fib), a break below could take the pair towards 1.2995 (9 DMA).

USD/CAD: The Canadian dollar weakened by the most in nearly five weeks against its U.S. counterpart on Monday, as investors grew more worried about the outlook for the global economy and eyed a Bank of Canada interest rate decision this week. The Bank of Canada is due to make an interest rate decision and update its economic outlook on Wednesday. The central bank has said it will leave rates at a record low of 0.25% until its 2% inflation target is achieved sustainably, which it does not expect for at least two years. The Canadian dollar was trading 0.6% lower at 1.3197 to the greenback, its biggest drop since Sept. 23. The currency touched its weakest intraday level since Oct. 16 at 1.3225. Immediate resistance can be seen at 1.3262(50%fib), upside break can trigger rise towards 1.3300 (Psychological level).On the downside, immediate support is seen at 1.3192 (38.2%fib), a break below could take the pair towards 1.3106 (23.6%fib).

USD/JPY: The dollar edged higher against the Japanese yen Monday as surging coronavirus cases in Europe and the United States and a lack of progress on a U.S. stimulus package made traders switch to greenback. U.S. reported 79,852 new infections on Saturday, close to the previous day's record of 84,244 new cases. Hospitalizations are also rising and have hit a two-month high and deaths are trending upwards. France registered record increase in infections over the weekend, while Spain announced a state of emergency as a second wave of cases surges through Europe. Strong resistance can be seen at 105.00 (50%fib), an upside break can trigger rise towards 105.15 (9 DMA).On the downside, immediate support is seen at 104.74 (38.2% fib), a break below could take the pair towards 106.30 (23.6% fib).

Equities Recap

European stocks fell on Monday as Italy and Spain imposed fresh restrictions to control a resurgence in coronavirus cases, while shares in German heavyweight SAP slumped after it cut its 2020 outlook.

UK's benchmark FTSE 100 closed down by 1.16 percent, Germany's Dax ended down by 3.71 percent, France’s CAC finished the day down by 1.91 percent.

U.S. stocks tumbled on Monday in thin trade, with the S&P 500 posting its biggest daily decline in four weeks, as soaring coronavirus cases and uncertainty about a fiscal relief bill in Washington dimmed the outlook for the U.S. economic recovery.

Dow Jones closed down by 2.29 percent, S&P 500 ended down by 1.86 percent, Nasdaq finished the day down by 1.64 percent.

Treasuries Recap

Longer-term U.S. Treasury yields fell on Monday as investors sold stocks amid a fast-rising case count in the COVID-19 pandemic and as stimulus talks in Washington dragged on.

The benchmark 10-year yield was down 4.3 basis points in afternoon trading at 0.7977%, well below its four-month high reached on Friday.

Commodities Recap

Oil prices fell more than 3% on Monday, extending last week’s losses as coronavirus cases continued to surge in the United States and Europe, while Libya’s rebound in crude production raised fears of oversupply.

Brent   dropped $1.31, or 3.1%, to settle at $40.46 a barrel. U.S. West Texas Intermediate (WTI) fell $1.29, or 3.2%, to settle at $38.56 a barrel. Both contracts fell almost 2.5% last week.

Gold edged up on Monday as growing fears over a second COVID-19 wave countered a firmer dollar and a lack of headway on a U.S. stimulus package to combat the economic impact of the pandemic.

Spot gold was 0.1% higher at $1,902.06 per ounce by 1221 GMT, regaining some ground after earlier falling to its lowest since Oct. 15, at $1,890.19.

Source: FXWire

Europe markets updates on 26/10/2020

Sterling steadies against Dollar as Brexit talks extends, European stocks fall,gold slips, Oil drops on rising virus cases, increasing Lybian output-october 26th,2020

Market Roundup

•German Oct Business Expectations  95.0, 96.5 forecast, 97.7 previous

•German Oct Current Assessment  90.3, 89.8 forecast, 89.2 previous

•German Oct Ifo Business Climate Index  92.7, 93.0 forecast, 93.4 previous

Looking Ahead - Economic events and other releases (GMT)

•13:00 French 3-Month BTF Auction -0.685% previous

•13:00 French 6-Month BTF Auction -0.678% previous

•13:00 French 12-Month BTF Auction -0.646% previous

•14:00 US Sep New Home Sales (MoM)  2.8% forecast, 4.8% previous

•14:00 US Sep New Home Sales  1,025K forecast, 1,011K previous

•14:30 US Oct Dallas Fed Mfg Business Index  13.6  previous

•15:30 US 3-Month Bill Auction 0.100% previous

•15:30 US 6-Month Bill Auction 0.115% previous

•15:30 US 5-Year Note Auction 0.275% previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events

Fxbeat

EUR/USD: The euro declined against dollar on Monday after a survey showed German business morale fell in October. German business morale fell for the first time in six months in October, weighed down by companies’ concerns about rising coronavirus infection rates that are making them more cautious about the coming months. The Ifo institute said its business climate index fell to 92.7 from a downwardly revised 93.2 in September. An index tracking the U.S. dollar against a basket of currencies was last up 0.2% at 92.95. Euro  the most traded currency pair and part of the index fell 0.3% at 1.1831.Immediate resistance can be seen at 1.0827(38.2% fib), an upside break can trigger rise towards 1.0890 (50% fib).On the downside, immediate support is seen at 1.0754 (23.6% fib), a break below could take the pair towards 1.0700 (Psychological level).

GBP/USD: Sterling stabilised against the dollar on Monday as markets turned cautious over new lockdown restrictions in Europe and record-high daily virus cases in the United States. U.S. COVID-19 cases hit record highs over the weekend, with hospitalisations at a two-month high. In Europe, Spain announced a new state of emergency and Italy imposed new lockdown measures to curb a second wave of infections. At 12:30 GMT, the pound was up against the dollar at $1.3051. Immediate resistance can be seen at 1.3072 (Daily high),an upside break can trigger rise towards 1.3092 (23.6%fib)On the downside, immediate support is seen at 1.3016 (50%fib), a break below could take the pair towards 1.2995 (9 DMA).

USD/CHF: The dollar strengthened against the Swiss franc on Monday as surging coronavirus cases in Europe and the United States and a lack of progress on a U.S. stimulus package made traders cautious. U.S. House Speaker Nancy Pelosi said on Sunday that she expected a White House response on Monday to the latest stimulus plan, but there is little evidence a deal is close.The United States has recorded its highest number of new COVID-19 cases for two consecutive days. So has France. Spain announced a new state of emergency and Italy has ordered restaurants and bars to shut by 6 p.m. Immediate resistance can be seen at 0.9080 (Daily high), an upside break can trigger rise towards 0.9091 (38.2%fib).On the downside, immediate support is seen at 0.9046 (23.6%fib), a break below could take the pair towards 0.9000 (Psychological level).

USD/JPY: The dollar rose against the Japanese yen Monday as surging coronavirus cases in Europe and the United States and a lack of progress on a U.S. stimulus package made traders switch to greenback. U.S. reported 79,852 new infections on Saturday, close to the previous day's record of 84,244 new cases. Hospitalizations are also rising and have hit a two-month high and deaths are trending upwards. France registered record increase in infections over the weekend, while Spain announced a state of emergency as a second wave of cases surges through Europe. Strong resistance can be seen at 105.00 (50%fib), an upside break can trigger rise towards 105.15 (9 DMA).On the downside, immediate support is seen at 104.74 (38.2% fib), a break below could take the pair towards 106.30 (23.6% fib).

Equities Recap

European stocks fell on Monday as Italy and Spain imposed fresh restrictions to control a resurgence in coronavirus cases, while shares in German heavyweight SAP slumped after it cut its 2020 outlook.

At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading down at 0.37 percent, Germany's Dax was down by 2.88 percent, France’s CAC finished was down by 1.18 percent.

Commodities Recap

Gold prices eased to an over one-week low on Monday  as the dollar firmed and talks over the new U.S. coronavirus aid package showed no signs of progress.

Spot gold fell 0.2% to $1,897.71 per ounce by 0908 GMT, after hitting $1,890.19, its lowest since Oct. 15.U.S. gold futures fell 0.3% to $1,900.50.

Spot gold fell 0.1% to $1,899.41 per ounce by 0053 GMT, after hitting $1,890.19, its lowest since Oct. 15. U.S. gold futures were down 0.2% at $1,900.

Oil prices fell on Monday, extending last week’s losses, as increasing coronavirus cases in the United States and Europe raised worries about energy demand, while Libya’s fast growing production also weighed on prices.

Brent was down 80 cents, or 1.9%, at $40.97 by 1121 GMT. U.S. West Texas Intermediate (WTI) dropped 82 cents, or 2.1%, to $39.03. Both contracts fell almost 2.5% last week.

Source: FXWire

Wall Street Breakfast: Flurry Of Dealmaking

Flurry of dealmaking

Bayer (OTCPK:BAYRY) is paying as much as $4B for U.S. biotech firm Asklepios BioPharmaceutical, bolstering its pharmaceuticals division as it continues to reel from its acquisition of crops giant Monsanto (and cancer-related Roundup lawsuits). The latest deal, which includes upfront consideration of $2B and potential milestone payments of up to $2B, is a bet on cutting-edge gene therapy, which offers the potential to cure a wide range of often-rare diseases by editing errors in the body's instruction manual. Drugmakers including Novartis (NYSE:NVS), Roche Holding (OTCQX:RHHBY) and Bristol-Myers Squibb (NYSE:BMY) have also made big bets on the industry, snapping up gene therapy makers.

Dunkin' may sell and go private

Dunkin' Donuts and Baskin Robbins chains owner Dunkin' Brands (NASDAQ:DNKN) confirmed preliminary talks to be acquired by Inspire Brands after the NYT reported on the negotiations. Inspire would take Dunkin' private at $106.5 per share, valuing the company at $8.8B, or a 20% premium over DNKN's closing price of $88.79 on Friday. While Dunkin' said "there is no certainty that any agreement will be reached," if successful, Inspire would add the new assets to the Buffalo Wild Wings, Arby's Sonic, and Jimmy John's chains that it already owns. DNKN +19% premarket.
More M&A: Blackstone to buy Simply Self Storage for about $1.2B.

New Canada oil giant

Cenovus Energy (NYSE:CVE) has agreed to buy Husky Energy (OTCPK:HUSKF) in a C$3.8B ($2.9B) all-stock deal that will combine two of the largest players in Canada's struggling oil-sands industry. The combined company will have about 750K boe/d production, making it the third-largest Canadian oil and natural gas producer. it would also be the second-largest Canadian-based refiner and upgrader with total North American upgrading and refining capacity of ~660K boe/d.

Coronavirus surge, elusive stimulus deal

U.S. stock index futures are starting the week on the backfoot, falling nearly 1% overnight, as the nation reported a record of more than 83,000 new COVID infections on both Friday and Saturday. "We're not going to control the pandemic. We are going to control the fact that we get vaccines, therapeutics and other mitigation areas," White House Chief of Staff Mark Meadows told CNN's State of the Union program. Meadows and Nancy Pelosi also accused each other of "moving the goalposts" on stimulus legislation in back-to-back interviews, dimming chances a deal could be reached before Election Day.

Vaccine trials

The COVID-19 vaccine being developed by the University of Oxford and AstraZeneca (NASDAQ:AZN) produces a robust antibody and T-cell immune response in elderly people, the group at highest risk, FT reports. While details of the finding are expected to be published shortly in a clinical journal, sources cautioned that positive immunogenicity tests do not guarantee that the vaccine will ultimately prove safe and effective in older people. AstraZeneca resumed the U.S. trial of its experimental vaccine on Friday after a pause due to safety concerns, while Johnson & Johnson (NYSE:JNJ) also restarted trials, saying the first batches of its shot could be available in January.

Farm purchases under China trade deal

"China has purchased approximately 71% of its farm purchases target for 2020," according to an interim report on agricultural trade from the U.S. Trade Representative. "They have purchased $23.6B in agricultural products so far this year, substantially more than the base year of 2017, and should end up being our best year ever in sales to China. It is worth noting that the Phase One Agreement did not go into effect until February 14, 2020, and March is the first full month of its effect... We already are on pace to have all-time high sales to China in beef, pork, corn, and soybeans."

California blackouts

PG&E (NYSE:PCG) is pre-emptively cutting power again in northern California, affecting 386,000 homes and businesses in 38 counties, or nearly 1M people. It's the fourth times this year the state’s largest utility had to shut off electricity due to high winds and extreme wildfire danger, which could spark blazes if live wires topple into dry brush. Utilities in Southern California, like Southern California Edison (NYSE:EIX), are also warning of potential blackouts.

Potential election chaos

As the threat of election-related unrest escalates in the U.S., Facebook (NASDAQ:FB) said it would implement emergency measures reserved for "at-risk" countries to bring down the online temperature. The social media giant plans to limit the "spread of viral content" and lower the bar for "suppressing potentially inflammatory posts" using internal tools previously deployed in Sri Lanka and Myanmar, WSJ reports. The tools would only be used in the event of election-related violence or other serious circumstances, though some employees are concerned it could slow down viral content and unintentionally hide legitimate political discussions.

Samsung chairman and icon dies

A chapter has closed for the Samsung conglomerate following the death of Lee Kun-hee, who transformed the South Korean appliance maker into the world's biggest producer of smartphones, TVs and memory chips. He had been incapacitated for years following a 2014 stroke, leaving day-to-day operations to his son, Lee Jae-yong, who goes by Jay Y. in the West. While Lee spends about 95% of his time focused on Samsung Electronics (OTC:SSNLF), the conglomerate's most valuable arm, he formally takes the reins with Samsung on the defensive and struggling to evolve within the tech industry.

What else is happening...

SAP (NYSE:SAP) tumbles 18% premarket after slashing revenue forecast.

Coca-Cola (NYSE:KO) steps away from bottling in Australia.

Chinese policymakers discuss new five-year development plan.

Airbnb (AIRB) approves private share split ahead of IPO.

American (NASDAQ:AAL) plans PR events before 737 MAX (NYSE:BA) takes to the skies.

AT&T (NYSE:T) job cuts at historical levels; CNN's Zucker may be on the block.

Today's Markets

In Asia, Japan -0.1%. Hong Kong +0.5%. China -0.8%. India -1.3%.
In Europe, at midday, London -0.2%. Paris -0.6%. Frankfurt -2.1%.
Futures at 6:20, Dow -0.9%. S&P -0.9%. Nasdaq -0.9%. Crude -2.5% to $38.85. Gold -0.2% at $1902.40. Bitcoin +0.6% to $13099.
Ten-year Treasury Yield -3 bps to 0.81%

Today's Economic Calendar

8:30 Chicago Fed National Activity Index
10:00 New Home Sales
10:30 Dallas Fed Manufacturing Survey

 

Source: Seeking Alpha

Dow futures fall more than 300 points after U.S. coronavirus cases surge to record high

(CNBC) Futures tied to major U.S. equity benchmarks traded lower in early morning trading on Monday as Wall Street headed for the last full trading week ahead of Election Day.

Dow Jones Industrial Average futures fell 307 points. The S&P 500 futures and the Nasdaq 100 futures both also traded in negative territory.

The decline in futures came amid a record surge in new coronavirus cases in the U.S. The country saw more than 83,000 new infections on both Friday and Saturday after outbreaks in Sun Belt states, surpassing a previous record of roughly 77,300 cases set in July, according to data from Johns Hopkins University.

White House chief of staff Mark Meadows said Sunday that the U.S. will not get control of the pandemic amid the surge in new cases. Vice President Mike Pence’s chief of staff and three aides tested positive for coronavirus, but his office said he will not quarantine himself.

This week marks the last week of October and the final trading period before Nov. 3. Major averages are on track for modest gains for the month, with the S&P 500 and the Nasdaq both rising more than 3% so far. The 30-stock Dow is up about 2% this month.

“Based on the action in the stock market we’ve seen over the past two weeks, it seems to us that it will take some serious new-news to fuel a significant decline over the next week and a half,” Matt Maley, chief market strategist at Miller Tabak, said in a note on Sunday.

Former Vice President Joe Biden maintains a sizable lead over President Donald Trump in national polls, although the gap has narrowed slightly as of late.

Traders will keep their eyes peeled for a raft of Big Tech and blue-chip corporate earnings as well as key economic data this week. Apple, Facebook, Alphabet, Amazon, Boeing and Caterpillar all report later in the week, while the first look at third quarter GDP is due on Thursday.

The Dow and the S&P 500 are coming off their first losing week in four as talks over the next coronavirus stimulus package dragged on. Treasury Secretary Steven Mnuchin said Friday that House Speaker Nancy Pelosi is “still dug in” on a number of issues in the aid deal.

The benchmark 10-year Treasury yield jumped to a four-month high of 0.84% last week, sparking a rally in bank stocks.

Wall Street Breakfast: What Moved Markets

(Seeking Alpha) Stocks rallied to finish Friday higher, but were down for the week with earnings unable to shake the market out of its habit of jumping and dropping on stimulus headlines. The S&P 500 was down about 0.6% for the week. The Nasdaq off a little more than 1% during the week. The broader market found itself in a fairly tight range through the week of trading. Mixed quarterly results couldn't help build traction, leaving sentiment vulnerable to positive and negative stimulus negotiations headlines. "It's generally been a little more of a selling market, and a lot of that has to do with waiting to see whether or not we get a fiscal stimulus package before the election,” said Sal Bruno, chief investment officer at IndexIQ. "The odds of that are getting lower and lower the closer we get to the election," he added.

The biggest listing ever

China's largest payments company is gearing up for a dual listing in Hong Kong and Shanghai in what could become the world's biggest IPO on record. Ant Financial has obtained clearance for the offering from Shanghai's STAR Market, China Securities Regulatory Commission and the Hong Kong Stock exchange, while pricing could come next week. Ant, backed by Chinese e-commerce major Alibaba (NYSE:BABA), could raise about $35B through the concurrent IPOs - at a valuation of at least $280B - surpassing Saudi Aramco's (ARMCO) $29.4B record set last December

Moderna not far behind Pfizer vaccine timeline

The U.S. could authorize emergency use of Moderna's (NASDAQ:MRNA) experimental COVID-19 vaccine in December, according to CEO Stéphane Bancel, if the company gets positive interim results in November from a large clinical trial. The comments suggest Moderna's timetable isn't that far off from Pfizer's (NYSE:PFE), which said last week it expects to seek U.S. authorization of emergency use of its vaccine by late November. Two other leading COVID-19 vaccines, from Johnson & Johnson (NYSE:JNJ) and AstraZeneca (NASDAQ:AZN), have been paused due to illnesses among study subjects, but are expected to resume shortly.

Good news, bad news

Snap (NYSE:SNAP) soared 24% AH on Tuesday following record Q3 revenues that crushed estimates (+52% to $679M), while attracting the highest-ever number of advertisers to its platform. That's due in part to the summer boycott against Facebook (NASDAQ:FB), which saw advertisers take their money elsewhere due to the social network's stance on hate speech. Meanwhile, the pandemic subscription boom faded for Netflix (NASDAQ:NFLX), which only added a little over 2M subscribers last quarter (vs. 16M in Q1 and 10M in Q2). The stock fell 5.4%, as the company said additions in 2021 would be down compared to this year if the world recovered from the COVID pandemic.

500,000

Tesla (NASDAQ:TSLA) stuck to its delivery target of a half a million vehicles this year, calling Model Y and Shanghai production key factors in hitting the mark. Shares rose 3.3% AH on Wednesday to $436/share on the forecast, after receiving a boost from the EV maker's fifth consecutive quarterly profit. CEO Elon Musk also gave additional details on the full self-driving [FSD] beta rollout, production ramp and the company's future robotaxi system.

Employees or contractors?

Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) must classify their drivers in California as employees, according to a state appeals court ruling that threatens to upend their business models. The order makes the two even more dependent on Proposition 22, a ballot initiative set for Nov. 3 that would supersede any court rulings. It has so far raised more than $189M from the companies, along with DoorDash (DOORD), Postmates (POSTM) and Instacart (ICART), making it the most expensive proposition in California's history. Should it pass, the companies say they will guarantee new protections to workers, but should it fail, they would likely explore other appeals options, like sending the case to the California Supreme Court

Google hit with antitrust suit

While the U.S. Department of Justice and 11 states filed an antitrust suit against Google (GOOG, GOOGL), shares of the tech giant rose during the week, due to the case's narrower scope and the latter pledging to fight back. It's still being called the highest profile antitrust case by the U.S. government since it took on Microsoft (NASDAQ:MSFT) in the 1990s, which resulted in the company agreeing to share computing interfaces (though it was not broken up). At the heart of the current lawsuit is Google's search business and allegations that the tech giant uses deals with distributors to make sure its search engine is the default for U.S. customers.

Goldman pleads guilty

Adding to fines and settlements in Hong Kong and Malaysia, Goldman Sachs (NYSE:GS) will pay a record $2.9B foreign bribery penalty in the U.S. and plead guilty for its involvement in the scandal-plagued 1MDB investment fund. That brings the global cost for the bank to more than $5B. Those hefty fines are also leading Goldman to claw back some executive compensation from current and former executives, including CEO David Solomon and his predecessor, Lloyd Blankfein.

Conoco-Concho combo

ConocoPhillips (NYSE:COP) announced a $9.7B deal to acquire Permian specialist Concho Resources (NYSE:CXO), in a gamble that will see the combined company produce 1.5M barrels per day, or a tenth of daily U.S. output. While it may seem like an odd time to go big on U.S. shale, considering how oil has done this year, it could make for a good time to pick up assets as the coronavirus pandemic depresses prices. The wave of consolidation doesn't stop there. Pioneer Natural Resources (NYSE:PXD) agreed to buy Parsley Energy (NYSE:PE), just a few weeks after Devon Energy (NYSE:DVN) snapped up WPX Energy (NYSE:WPX) for $2.6B.

U.S. Indices
Dow -1.0% to 28,336. S&P 500 -0.5% to 3,465. Nasdaq -1.1% to 11,548. Russell 2000 +0.4% to 1,640. CBOE Volatility Index +0.5% to 27.55.

S&P 500 Sectors
Consumer Staples -1.4%. Utilities +1.2%. Financials +1.%. Telecom +2.1%. Healthcare -0.1%. Industrials -0.6%. Information Technology -2.2%. Materials -0.4%. Energy +0.5%. Consumer Discretionary -0.6%.

World Indices
London -1.0% to 5,860. France -0.5% to 4,910. Germany -2.% to 12,646. Japan +0.5% to 23,517. China -1.8% to 3,278. Hong Kong +2.2% to 24,919. India +1.8% to 40,686.

Commodities and Bonds
Crude Oil WTI -2.8% to $39.75/bbl. Gold -0.1% to $1,904./oz. Natural Gas +5.9% to 2.936. Ten-Year Treasury Yield -0.6% to 138.3.

Forex and Cryptos
EUR/USD +1.23%. USD/JPY -0.65%. GBP/USD +0.96%. Bitcoin +14.3%. Litecoin +18.6%. Ethereum +12.1%. Ripple +5.7%.

Top Stock Gainers
Marin Software Inc (NASDAQ:MRIN) +167%. Ever-Glory International (NASDAQ:EVK) +166%. Kaixin Auto Holdings (NASDAQ:KXIN) +139%. Socket Mobile (NASDAQ:SCKT) +84%. Dragon Victory International (NASDAQ:LYL) +80%.

Top Stock Losers
Biondvax Pharmaceuticals (NASDAQ:BVXV) -87%. Globus Maritime (NASDAQ:GLBS) -40%. GSX Techedu (NYSE:GSX) -37%. CyberOptics Corporation (NASDAQ:CYBE) -32%. Westwater Resources (NASDAQ:WWR) -31%.

Europe markets updates on 23/10/2020

Sterling on track for weekly gain as Brexit negotiations intensify, European stocks rise, Gold ticks up, Oil rises above $42 as possible opec+ cut extension offsets demand concern-october 23rd 2020

Market Roundup

•UK Sep Retail Sales (MoM)  1.5%,0.4% forecast,0.8% previous

•UK Sep Core Retail Sales (YoY)  6.4%,5.0% forecast, 4.3% previous

•UK Sep Core Retail Sales (MoM)  1.6%,0.5% forecast, 0.6% previous

•UK Sep Retail Sales (YoY)  4.7%, 3.7% forecast, 2.8% previous

• French Oct Manufacturing PMI  51.0, 51.0 forecast, 51.2 previous

•French Oct Services PMI  46.5, 46.8 forecast, 47.5 previous

•French Oct Markit Composite PMI  47.3, 48.0 forecast, 48.5 previous

•German Oct Manufacturing PMI  58.0, 55.1 forecast, 56.4 previous

•German Oct Services PMI  48.9, 49.2 forecast, 50.6 previous

•German Oct German Composite PMI  54.5, 53.2 forecast, 54.7 previous

•EU Oct Services PMI  46.2, 47.0 forecast, 48.0 previous

•EU Oct Manufacturing PMI  54.4, 53.1 forecast, 53.7 previous

•EU Oct Markit Composite PMI 49.4, 49.3 forecast, 50.4 previous

•UK Oct Services PMI  52.3, 55.0 forecast, 56.1 previous

•UK Oct Composite PMI  52.9, 55.6 forecast, 55.7 previous

•UK Oct Manufacturing PMI  53.3, 54.3 forecast,  54.1     previous

•Russia Interest Rate Decision 4.25%,4.25% forecast, 4.25% previous

Looking Ahead - Economic Data (GMT) 

•13:00 Belgium Oct  NBB Business Climate  -11.5 forecast, -10.8 previous

•13:30 Brazil Aug Federal Tax Revenue 118.50B forecast, 118.50B previous

•13:45 US Oct Services PMI  54.6 forecast, 54.6 previous

•13:45 US Oct Manufacturing PMI  53.4 forecast, 53.2 previous

•13:45 US Oct Markit Composite PMI  54.3 previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events

Currencies Recap

EUR/USD: The euro strengthened against dollar on Friday after Germany’s PMI survey showed that its manufacturing sector rebounded strongly. German private sector activity grew for the fourth month running in October. Manufacturing proved robust, with the flash PMI rising to 58.0, its highest level since April 2018. The service sector contracted, however, with the flash PMI dipping to 48.9. The euro was up 0.32 % against the dollar at $1.1847.Immediate resistance can be seen at 1.1866 (Higher BB), an upside break can trigger rise towards 1.1889 (23.6%fib).On the downside, immediate support is seen at 1.1832 (38.2% fib), a break below could take the pair towards 1.1784(Daily low).

GBP/USD: Sterling edged up against dollar on Friday, as Britain and the European Union entered intense negotiations on a Brexit trade deal. The pound had its best day in seven months on Wednesday, surging 1.7% against the dollar, when Britain and the EU said they would start the new phase of negotiations. Prime Minister Boris Johnson’s spokesman had said a week earlier that talks were over - a move markets saw as brinkmanship. By Friday, the pound had eased some gains but was stabilising near the new highs. The market is more focused on the possibility of an EU-UK deal. Immediate resistance can be seen at 1.3128 (Higher BB), an upside break can trigger rise towards 1.3190 (23.6%fib).On the downside, immediate support is seen at 1.3090 (50%fib), a break below could take the pair towards 1.3000(Psychological level).

USD/CHF: The dollar declined against the Swiss franc on Friday as investors waited for a breakthrough in stimulus talks in Washington and post-Brexit trade negotiations. U.S. President Donald Trump adopted a more restrained tone than in the first debate, though exchanges again focused on the handling of the COVID-19 pandemic and personal slights. Meanwhile, chief negotiators for Britain and the European Union were set to meet on Friday for negotiations on a last-minute trade deal that would stave off a tumultuous finale to the five-year Brexit crisis. Immediate resistance can be seen at 0.9051 (23.6%fib), an upside break can trigger rise towards 0.9098 (38.2% fib).On the downside, immediate support is seen at 0.9029  (Lower BB), a break below could take the pair towards 0.9000 (Psychological level).

USD/JPY: The dollar remained within a tight range against the Japanese yen on Friday , less than two weeks before the U.S. presidential election, with traders looking for a breakthrough in stimulus talks in Washington. The final debate between U.S. President Donald Trump and his Democratic challenger Joe Biden on Thursday provided few surprises. At Thursday’s debate, Biden renewed his criticism of Trump’s handling of the coronavirus pandemic as Trump levelled unfounded corruption accusations at Biden and his family. Strong resistance can be seen at 104.71(38.6%fib), an upside break can trigger rise towards 105.06 (50%fib).On the downside, immediate support is seen at 104.53 (Daily low), a break below could take the pair towards 104.00 (Psychological level).

Equities Recap

European stocks rose on Friday, boosted by positive earnings updates from Barclays and carmakers, but nagging worries about the economic impact of surging COVID-19 cases put markets on course for their biggest weekly decline in a month.

At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading up at 1.56 percent, Germany's Dax was up  by 1.19 percent, France’s CAC finished was up by 1.53 percent.

Commodities Recap

Gold prices gained on Friday, holding above the key $1,900 level, as investors pinned hopes on a U.S. coronavirus relief package eventually getting passed, although a firmer dollar limited gains.

Spot gold rose 0.2% to $1,907.96 per ounce by 0747 GMT and is up 0.5% for the week. U.S. gold futures gained 0.3% to $1,909.40 per ounce.

Oil rose further above $42 a barrel on Friday, heading for a weekly drop, as demand concerns raised by surging coronavirus cases in the United States and Europe were offset by the prospect of an extension to OPEC-led supply curbs.

Brent crude   rose 20 cents, or 0.5%, to $42.66 a barrel by 1140 GMT, having gained 1.7% on Thursday. U.S. crude   added 15 cents, or 0.4%, to $40.79. Both contracts are heading for a weekly loss.

 

Source: FXWire

Wall Street Breakfast: Employees Or Contractors?

Employees or contractors?

Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) must classify their drivers in California as employees, according to a state appeals court ruling that threatens to upend their business models. The order makes the two even more dependent on Proposition 22, a ballot initiative set for Nov. 3 that would supersede any court rulings. It has so far raised more than $189M from the companies, along with DoorDash (DOORD), Postmates (POSTM) and Instacart (ICART), making it the most expensive proposition in California's history. Should it pass, the companies say they will guarantee new protections to workers, but should it fail, they would likely explore other appeals options, like sending the case to the California Supreme Court.

Stimulus deal remains elusive

It's been quite a choppy trading week on Wall Street, and the trend didn't stop overnight, with U.S. stock index futures inching into the green after spending the first half of session in the red. While House Speaker Nancy Pelosi said progress on a stimulus deal was "just about there," White House economic adviser Larry Kudlow cautioned "significant policy differences" remained, which were unlikely to be resolved before the election. On the economy, the latest weekly initial jobless claims dropped 55,000 to fall below 800,000 for first time since March, while about a fifth of S&P 500 companies have so far reported Q3 results, of which 84.1% beat earnings estimates.

Final debate

In a relatively civil debate following a turbulent first faceoff, President Trump and former Vice President Joe Biden traded some barbs last night over the economy. Trump said Biden would "destroy the oil industry" after the latter talked up plans about a "transition to renewable energy over time," as well as ending federal subsidies to the sector. Regarding coronavirus shutdowns... Trump declared, "we can't keep this country closed... the cure cannot be worse than the problem itself," while Biden replied, "I'm going to shut down the virus, not the country," though he didn't rule out additional shutdowns. The two also differed on minimum wage, with Trump stating it should be left up to states and Biden saying it deserves to be $15 an hour on a federal level (from the current $7.25).

All clear for remdesivir

Shares of Gilead Sciences (NASDAQ:GILD) are up nearly 6% in premarket trade after its antiviral therapy remdesivir became the first drug to obtain formal FDA clearance for treating COVID-19. That could help solidify its position as the go-to medicine for patients even when other drugs begin to reach the market. In May, the FDA granted remdesivir, sold under the brand name Veklury, emergency use authorization, allowing hospitals and doctors to use the medication even though it had not been formally approved by the agency.

Opioid crisis

Launching a preemptive strike against an impending opioid-related lawsuit from the Justice Department, Walmart (NYSE:WMT) is suing the federal government regarding the obligations of pharmacists under the Controlled Substances Act. "They are now threatening a completely unjustified lawsuit against Walmart, claiming in hindsight pharmacists should have refused to fill otherwise valid opioid prescriptions that were written by the very doctors that the federal government still approves to write prescriptions," Walmart said in the filing. While the suit won't necessarily head off any DOJ action, a court ruling siding with the company's view of the law could bolster it against any government case.

Next antitrust suit against Silicon Valley

The Federal Trade Commission is "huddling privately" to discuss its antitrust probe of Facebook (NASDAQ:FB), according to The Washington Post, signaling its investigation has moved closer to an endgame. While the exact timing of any action is unclear, a federal suit would follow closely on the Justice Department's landmark antitrust suit against Google (GOOG, GOOGL). As with Google, the focus is on competition, and specifically Facebook's dominance in social networking along with its purchases of Instagram and WhatsApp.

Goldman pleads guilty

Adding to fines and settlements in Hong Kong and Malaysia, Goldman Sachs (NYSE:GS) will pay a record $2.9B foreign bribery penalty in the U.S. and plead guilty for its involvement in the scandal-plagued 1MDB investment fund. That brings the global cost for the bank to more than $5B. Those hefty fines are also leading Goldman to claw back some executive compensation from current and former executives, including CEO David Solomon and his predecessor, Lloyd Blankfein.

U.K. signs first post-Brexit trade deal

As the clock ticks down to reach an agreement with the European Union, the U.K. has signed a trade deal with Japan, its first with a major economy since Brexit. The bilateral deal largely preserves the terms under which the U.K. traded with Tokyo when it was part of the EU, but is expected to boost British trade by £15B and GDP by 0.07% over the next 15 years. It will also make it easier for British companies to operate in Japan, with tariff-free trade on 99% of exports to the country, and benefit "all parts of the country and Scotland, London and the East Midlands in particular."

 

What else is happening...

Why Intel's (NASDAQ:INTC) horrible quarter could boost Apple (NASDAQ:AAPL), Dell (NYSE:DELL) and HP (NYSE:HPQ).

Gap (NYSE:GPS) shares hit 52-week high after charting course to profitability.

Airbus (OTCPK:EADSY) plans to ramp up A320 output in show of confidence.

Palantir (NYSE:PLTR) helps the U.S. government with COVID-19 vaccine tracking.

IBM (NYSE:IBM), Pfizer (NYSE:PFE) design AI model that can predict Alzheimer's.

Wirecard North America (OTCPK:WCAGY) sells itself to Syncapay.

 

Thursday's Key Earnings

American Airlines (NASDAQ:AAL) +3.1% seeing improvements in passenger demand.
AT&T (NYSE:T) +5.8% surprising with strong Q3 wireless, broadband net adds.
Coca-Cola (NYSE:KO) striking higher margins despite pandemic pressures.
Dow Inc. (NYSE:DOW) +0.6% as demand picked up from pandemic lows.
Freeport-McMoRan (NYSE:FCX) +3.6% lifted by gold prices, copper volumes.
Intel (INTC) -9.4% AH as Q3 data center sales fell 7%.
Kimberly-Clark (NYSE:KMB) -6.9% posting mixed results.
Mattel (NASDAQ:MAT) +6.1% AH on a big quarter for Barbie sales.
Sirius XM (NASDAQ:SIRI) +2.2% raising full-year subscriber, financial outlook.
Southwest Airlines (NYSE:LUV) +5.3% showing improvement on cash flow, profitability.
Union Pacific (NYSE:UNP) -6.2% despite notching a record operating ratio.
Valero Energy (NYSE:VLO) +1.8% posting a smaller-than-forecast Q3 loss.

Today's Markets

In Asia, Japan +0.2%. Hong Kong +0.5%. China -1%. India +0.3%.
In Europe, at midday, London +1.5%. Paris +1.3%. Frankfurt +0.9%.
Futures at 6:20, Dow +0.4%. S&P +0.3%. Nasdaq +0.1%. Crude +0.3% to $40.78. Gold +0.4% at $1911.70. Bitcoin +0.8% to $12984.
Ten-year Treasury Yield flat at 0.86%

Today's Economic Calendar

9:45 PMI Composite Flash
1:00 PM Baker-Hughes Rig Count

 

 

Source: Seeking Alpha

Asia markets updates on 23/10/2020

Kiwi slumps as CPI misses expectations, Dollar steadies following U.S. presidential debate, Asian shares consolidate - Friday, October 23rd, 2020

Market Roundup

    • Oil eases on higher U.S. gasoline inventories
    • Gold up on U.S. stimulus optimism

Economic Data Ahead

    • (0400 ET/0800 GMT) EZ Markit Manufacturing PMI(Oct) PREL
    • (0400 ET/0800 GMT) EZ Markit Services PMI(Oct) PREL
    • (0400 ET/0800 GMT) EZ Markit PMI Composite(Oct) PREL
    • (0430 ET/0830 GMT) UK Markit Manufacturing PMI(Oct) PREL
    • (0430 ET/0830 GMT) UK Markit Services PMI(Oct) PREL

Key Events Ahead

    • No Significant Events Scheduled

FX Beat

DXY: The dollar index rose as a measured U.S. presidential debate left investors in a cautious mood. Markets focus now shifts to the Nov. 3 U.S. presidential election after President Donald Trump and Democratic challenger Joe Biden offered sharply contrasting views on the pandemic at Thursday’s final presidential debate. The greenback against a basket of currencies traded 0.1 percent up at 93.06, having touched a low of 92.47 on Wednesday, its lowest since September 2.

EUR/USD: The euro declined, extending previous session losses, after a latest Reuters poll of economists showed, the coronavirus resurgence is seen derailing the Eurozone’s economic recovery, with weak growth and inflation outlooks. The European currency traded 0.2 percent lower at 1.1796, having touched a high of 1.1880 on Wednesday, its highest since September 16. Investors’ attention will remain on a series of economic data from the Eurozone economies, and EZ Markit prelim PMI's, ahead of the U.S. Markit PMI's. Immediate resistance is located at 1.1840, a break above targets 1.1880. On the downside, support is seen at 1.1778, a break below could drag it below 1.1754.

USD/JPY: The dollar slumped, reversing some of its previous session gains, as President Donald Trump adopted a more restrained tone than in the first debate, though exchanges again focused around the handling of the COVID-19 pandemic and personal slights. Persistent hopes that Congress might pass a stimulus package before the election and confidence that spending follows anyway, no matter who gets elected. The major was trading 0.1 percent down at 104.66, having hit a low of 104.34 on Wednesday, its lowest since September 21. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. Markit PMI's. Immediate resistance is located at 105.14 (5-DMA), a break above targets 105.26 (10-DMA). On the downside, support is seen at 104.45, a break below could take it near at 104.08.

GBP/USD: Sterling eased, extending previous session losses, on uncertainty over Brexit outlook, although it is up 1.2 percent this week, supported by hopes that Britain and the European Union can eventually reach some sort of trade deal. The major traded 0.2 percent lower at 1.3054, having hit a high of 1.3152 on Wednesday, it’s highest since September 7. Investors’ attention will remain on the geopolitical developments, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.3121, a break above could take it near 1.3143. On the downside, support is seen at 1.3031, a break below targets 1.3003 (5-DMA). Against the euro, the pound was trading eased 0.05 percent at 90.33 pence, having hit a high of 90.11 on Wednesday, it’s highest since October 14.

AUD/USD: The Australian dollar plunged, halting a 2-day rally, as the Reserve Bank of Australia made it very clear recently that they are going to be loosening monetary policy at the November meeting. The Aussie trades 0.1 percent down at 0.7108, having hit a high of 0.7139 earlier, it’s highest since October 15. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.7160, a break above could take it near 0.7186. On the downside, support is seen at 0.7084, a break below targets 0.7047.

NZD/USD: The New Zealand dollar slumped from a 1-month high recorded in the prior session, after data showed CPI data missed expectations. New Zealand CPI on a quarterly basis rose 0.7 percent in Q3, below expectations of 0.9 percent gain but above previous reading of -0.5 percent, while CPI on yearly basis rose 1.4 percent in Q3, below expectations of 1.7 percent and previous reading of 1.5 percent. The Kiwi traded 0.2 percent lower at 0.6663, having touched a high of 0.6688 on Thursday, its highest level since September 21. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6700, a break above could take it near 0.6720. On the downside, support is seen at 0.6635, a break below could drag it below 0.6600.

Equities Recap

Asian shares consolidated within narrow ranges as investors tightened positions with less than two weeks to go before the U.S. presidential election and awaited a breakthrough in stimulus talks in Washington.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded flat.

Tokyo's Nikkei rose 0.2 percent to 23,516.59 points, Australia's S&P/ASX 200 index declined 0.1 percent to 6,167.00 points. South Korea's KOSPI surged 0.2 percent to 2,360.81 points.

Shanghai composite index fell 0.9 percent to 3,283.17 points, while CSI 300 index traded 1.03 percent down at 4,728.78 points.

Hong Kong’s Hang Seng traded 0.2 percent higher at 24,834.29 points. Taiwan shares shed 0.1 percent to 12,898.82 points.

Commodities Recap

Crude oil prices eased as higher U.S. gasoline inventories signalled a deteriorating demand outlook as coronavirus cases soar, although the possibility of an economic stimulus package in the United States limited downside. International benchmark Brent crude was trading 0.3 percent down at $42.27 per barrel by 0551 GMT, having hit a low of $41.43 on Wednesday, its lowest since October 12. U.S. West Texas Intermediate was trading 0.4 percent lower at $40.42 a barrel, after falling as low as $39.74 on Thursday, its lowest since October 15.

Gold prices steadied on hopes that a U.S. stimulus package would eventually be passed, boosting the metal’s appeal as an inflation hedge, although a stronger dollar limited upside. Spot gold gained 0.05 percent to $1,904.68 per ounce by 0554 GMT, having hit a high of $1931.40 on Wednesday, its highest since October 12. U.S. gold futures rose 0.2 percent to $1,907.50 per ounce.

Treasuries Recap

The U.S. Treasury yields eased, with the benchmark 10-year note yield trading at 0.844 percent and the 30-year yield at 1.664 percent.

Source: FXWire

Stock futures dip as traders monitor stimulus talks

(CNBC) U.S. stock futures slipped on Thursday night as Wall Street weighed the potential for additional fiscal stimulus, news on the earnings and coronavirus treatment fronts.

Dow Jones Industrial Average futures dipped 30 points, or 0.1%. S&P 500 futures were down 0.1% along with Nasdaq 100 futures.

Intel shares fell more than 9% in after-hours trading following the release of mixed quarterly numbers for the chip maker. The company’s earnings were in line with analyst expectations, but revenue from its data center business fell short of analyst estimates.

Meanwhile, Gilead Sciences gained 7.1% after the Food and Drug Administration approved the company’s drug, remdesivir, for use as a treatment against the coronavirus.

The Dow and S&P 500 each gained 0.5% during regular trading while the Nasdaq Composite advanced 0.2% after House Speaker Nancy Pelosi signaled she and Treasury Secretary Steven Mnuchin were making progress in their fiscal stimulus negotiations.

“If we were not making progress, I wouldn’t spend five seconds in these conversations. … This is not anything other than I think a serious attempt. I do believe that both sides want to reach an agreement,” Pelosi said.

However, Pelosi also tempered expectations over Democrats and Republicans reaching a deal before the election, saying it could take “a while” for a bill to be written and signed.

Traders have been keeping an eye on Washington in recent weeks as they gauge the prospects for new coronavirus aid to be pushed through. Several market experts and economists, including Federal Reserve Chairman Jerome Powell, think it is imperative that lawmakers reach a deal on another stimulus package.

“Governmental powers are still trying to put together another economic relief package,” said Jim Paulsen, chief investment strategist at The Leuthold Group. “However, despite the July expiration of unemployment benefits provided by the CARES Act, here, two-and-a-half months later, U.S. economic momentum is remarkably healthy.”

Paulsen’s comment came after the release of much better-than-expected U.S. unemployment data on Thursday.

Thursday’s moves came ahead of the second debate between President Donald Trump and former Vice President Joe Biden. The debate started at 9 p.m. ET and is the last one before the Nov. 3 presidential election.

Biden held a lead in most national polls heading into the debate as the possibility for a so-called Blue Wave grows. Some market experts a Democratic sweep could lead to a pop in equity prices in the short term. However, legendary hedge fund manager Paul Tudor Jones warned Thursday that this scenario could pressure stocks in the long term.

“I think under a blue wave, and the Biden tax plan, financial assets over the long run suffer a great deal,” he said on CNBC’s “Squawk Box.”

U.S markets updates on 23/10/2020

U.S Dollar index edges up from 7-week lows, Wall street rises, Gold eases, Oil struggles to recover after U.S. gasoline stocks build-october 23rd 2020

Market Roundup

•U.S. stimulus talks remain in focus

• US Weekly jobless claims dip below 800,000, but remain elevated

• US Jobless Claims 4-Week Avg 811.25K, 866.25K previous

• US Initial Jobless Claims 787K,860K forecast, 898K previous

• US Continuing Jobless Claims 8,373K,9,500K forecast, 10,018K previous

• Russia Central Bank reserves (USD) 585.3B, 585.3B previous

• EU Oct Consumer Confidence-15.5, -15.0 forecast, -13.9 previous

• US Sep Existing Home Sales6.54M,   6.30M forecast, 6.00M previous

• US Sep Existing Home Sales (MoM) 9.4%, 5.0% forecast, 2.4% previous

• US Sep   Leading Index (MoM) 0.7%,  0.7% forecast, 1.2% previous

• US Natural Gas Storage 49B, 52B forecast, 46B previous

• US Oct KC Fed Composite Index 13, 11 previous

• US Oct KC Fed Manufacturing Index 23, 18 previous

Looking Ahead - Economic Data (GMT) 

•21:45 New Zealand CPI (QoQ) (Q3) 0.9%,-0.5% previous

•21:45 New Zealand CPI (YoY) (Q3) 1.7% forecast,1.5% previous

•22:00 Australia Services PMI 50.8 previous

• 22:00 Australia Manufacturing PMI 55.4 previous

• 23:01 UK GfK Consumer Confidence  -28, -25 previous

•23:50 Japan CPI Tokyo Ex Food and Energy (MoM)  -0.1% previous

•23:50 Japan Sep National Core CPI (YoY)  -0.4%forecast, -0.4% previous

•23:50 Japan Sep National CPI (YoY)  0.2% previous

•23:50 Japan Sep CPI, n.s.a (MoM)  0.2 previous

•23:50 Japan National CPI (MoM)  0.3% previoius

Looking Ahead - Economic Data (GMT) 

•No significant events

Currencies Summaries

EUR/USD: The euro declined on Thursday as dollar recovered some lost ground after doubts emerged whether an agreement on a new U.S. fiscal coronavirus aid package could be reached before the election. Stimulus talks between U.S. lawmakers faced a setback on Wednesday when President Donald Trump accused Democrats of being unwilling to craft a compromise on aid, despite reports of some progress earlier in the day. The news dented risk sentiment and lifted the dollar  against its rivals. Immediate resistance can be seen at 1.1838(38.2%fib), an upside break can trigger rise towards 1.1889 (23.6%fib).On the downside, immediate support is seen at 1.1791(50% fib), a break below could take the pair towards 1.1700 (Psychological level).

GBP/USD: The pound slipped slightly against the dollar on Thursday, but held close to the six-week highs it hit in the previous session following news that stalled Brexit negotiations were due to resume. Sterling rose by as much as 1.7% versus the dollar on Wednesday after the European Union’s chief negotiator Michel Barnier said that a deal was within reach.It held close to those highs on Thursday, with the Brexit trade talks due to resume in the afternoon after negotiations were halted abruptly last week. Immediate resistance can be seen at 1.3128 (Higher BB), an upside break can trigger rise towards 1.3190 (23.6%fib).On the downside, immediate support is seen at 1.3090 (50%fib), a break below could take the pair towards 1.3000(Psychological level).

USD/CAD: The Canadian dollar edged higher against its broadly stronger U.S. counterpart on Thursday as Wall Street clung to hopes of a U.S. coronavirus relief package and oil prices climbed, with the loonie reversing its earlier decline. The Canadian dollar was trading 0.1% higher at 1.3138 to the greenback, or 76.12 U.S. cents, having traded in a range of 1.3123 to 1.3177. Since the start of the month, the loonie has gained 1.4%. Immediate resistance can be seen at 1.3150(11DMA) break can trigger rise towards 1.3184(38.2%fib).On the downside, immediate support is seen at 1.3107(23.6%fib), a break below could take the pair towards 1.3045 (Lower BB).

USD/JPY: The dollar strengthened against the Japanese yen on as hopes for a fiscal package in the United States before the November elections crumbled again and the global surge in COVID-19 cases fuelled demand for safe-haven assets like the greenback.Progress towards a U.S. stimulus deal has boosted sentiment in world markets and lifted demand for riskier assets in recent sessions. News that Europe has seen the number of coronavirus cases surge to a record high, with Spain becoming the first Western European country to exceed 1 million infections, added to the cautious tone in world markets.This backdrop appeared to favour the dollar, which had fallen for the last three days against a basket of other major currencies. Strong resistance can be seen at 105.71(38.6%fib), an upside break can trigger rise towards 105.01 (50%fib).On the downside, immediate support is seen at 104.30 (23.6%fib), a break below could take the pair towards 104.00 (Psychological level).

Equities Recap

European shares fell for a fourth straight day on Thursday, though they trimmed losses after Britain’s Finance Minister Rishi Sunak unveiled billions of pounds more of financial aid for pandemic-hit businesses.

UK's benchmark FTSE 100 closed down by  0.16 percent, Germany's Dax ended down by 0.12 percent, France’s CAC finished the day up by 0.05 percent.

Shares on Wall Street gained on Thursday in choppy trading, as investors cheered the prospect of more fiscal stimulus to support a pandemic-damaged U.S. economy, with more data pointing to a slowing labor market recovery.

Dow Jones closed up by 0.54 percent, S&P 500 closed up by 0.52 percent, Nasdaq settled up   by 0.19% percent.

Treasuries Recap

Benchmark U.S. Treasury yields rose to four-month highs on Thursday and the yield curve steepened on hopes that U.S. lawmakers are close to striking a deal on new fiscal stimulus.

Benchmark 10-year Treasury yields rose as high as 0.853%, the highest since June 9. The yield curve between two-year and 10-year notes steepened to 70 basis points, the widest spread since June 8.

Commodities Recap

Oil prices ticked up on Thursday, boosted by the possibility of an economic stimulus package in the United States, but struggled to recover fully from the previous session’s losses when higher U.S. gasoline inventories signalled a deteriorating demand outlook as coronavirus cases soar.

Brent crude futures were 70 cents higher at $42.42 a barrel at 2:29 p.m. EDT (1729 GMT) and U.S. West Texas Intermediate (WTI) crude futures gained 59 cents to $40.62.

Gold eased on Thursday on better-than-expected U.S. jobs data, with appeal of the metal further weighed down by a stronger dollar and doubts over a U.S. stimulus package before the presidential elections.

Spot gold fell 1.2% to $1,901.16 per ounce by 12:36 a.m. ET (1636 GMT), and U.S. gold futures slipped 1.4% to $1,902.80.

Source: FXWire

Europe markets updates on 22/10/2020

Sterling holds near new highs as Brexit talks restart, European stocks fall, Gold slips, Oil slips on weaker demand outlook after U.S. gasoline stocks build-october 22nd 2020

Market Roundup

•German Nov GfK German Consumer Climate  -3.1, -2.8 forecast,-1.6 previous

•French Oct Business Survey  93, 96 forecast, 96 previous

•UK Oct CBI Industrial Trends Orders  -34, -45 forecast, -48 previous

Looking Ahead - Economic Data (GMT) 

•12:30 US Jobless Claims 4-Week Avg  866.25K previous

•12:30 US Initial Jobless Claims 860K forecast, 898K previous

•12:30 US Continuing Jobless Claims 9,500K forecast, 10,018K previous

•13:00 Russia Central Bank reserves (USD) 585.3B previous

•14:00 EU Oct Consumer Confidence  -15.0 forecast, -13.9 previous

•15:00 US Sep Existing Home Sales   6.30M forecast, 6.00M previous

•15:00 US Sep Existing Home Sales (MoM)  5.0% forecast, 2.4% previous

•15:00 US Sep   Leading Index (MoM)   0.7% forecast, 1.2% previous

•14:30 US Natural Gas Storage 52B forecast, 46B previous

•15:00 US Oct KC Fed Composite Index  11 previous

•15:00 US Oct KC Fed Manufacturing Index  18 previous

Looking Ahead - Economic events and other releases (GMT)

•17:10 US FOMC Member Barkin Speaks

Fxbeat

EUR/USD: The euro declined on Thursday as dollar recovered some lost ground after doubts emerged whether an agreement on a new U.S. fiscal coronavirus aid package could be reached before the election. Stimulus talks between U.S. lawmakers faced a setback on Wednesday when President Donald Trump accused Democrats of being unwilling to craft a compromise on aid, despite reports of some progress earlier in the day. The news dented risk sentiment and lifted the dollar  against its rivals. Immediate resistance can be seen at 1.1838(38.2%fib), an upside break can trigger rise towards 1.1889 (23.6%fib).On the downside, immediate support is seen at 1.1791(50% fib), a break below could take the pair towards 1.1700 (Psychological level).

GBP/USD: The pound slipped slightly against the dollar on Thursday, but held close to the six-week highs it hit in the previous session following news that stalled Brexit negotiations were due to resume. Sterling rose by as much as 1.7% versus the dollar on Wednesday after the European Union’s chief negotiator Michel Barnier said that a deal was “within reach”.It held close to those highs on Thursday, with the Brexit trade talks due to resume in the afternoon after negotiations were halted abruptly last week. Immediate resistance can be seen at 1.3128 (Higher BB), an upside break can trigger rise towards 1.3190 (23.6%fib).On the downside, immediate support is seen at 1.3090 (50%fib), a break below could take the pair towards 1.3000(Psychological level).

USD/CHF: The dollar edged higher against the Swiss franc on Thursday as hopes for a fiscal package in the United States before the November elections crumbled again and the global surge in COVID-19 cases fueled demand for safe-haven assets like the greenback. Progress towards a U.S. stimulus deal has boosted sentiment in world markets and lifted demand for riskier assets in recent sessions weighing this week on the dollar, which tends to weaken when risk appetite picks up. But pressure on the currency eased after U.S. President Donald Trump on Wednesday accused Democrats of being unwilling to craft an acceptable compromise. Immediate resistance can be seen at 0.9097 (38.2 % fib), an upside break can trigger rise towards 0.9126 (50%fib).On the downside, immediate support is seen at 0.9052 (23.6%fib), a break below could take the pair towards 0.9000(Psychological level).

USD/JPY: The dollar was little changed against the Japanese yen on Thursday as U.S. stimulus talks remained the focus for markets with trading buffeted over recent days by the extent of progress made on the potential size of the aid package. Prospects remain dim for the Republican-controlled Senate to approve any aid before the Nov. 3 election. Nancy Pelosi said before starting talks with Treasury Secretary Steven Mnuchin that there was still a chance for a deal despite resistance from Senate Republicans, though she acknowledged it might not pass until after the election. Strong resistance can be seen at 105.71(38.6%fib), an upside break can trigger rise towards 105.01 (50%fib).On the downside, immediate support is seen at 104.30 (23.6%fib), a break below could take the pair towards 104.00 (Psychological level).

Equities Recap

European stocks hit their lowest level in almost a month on Thursday, as a fall in German consumer morale, worries about soaring coronavirus cases and a U.S. stimulus impasse weighed on sentiment.

At (GMT 11:30 ),UK's benchmark FTSE 100 was last trading up at 0.17percent, Germany's Dax was up  by 0.15 percent, France’s CAC finished was up by 0.37 percent.

Commodities Recap

Gold prices slipped on Thursday as market hopes for a U.S. coronavirus aid package ahead of the presidential elections waned, in turn bolstering the dollar.

Spot gold fell 0.4% to $1,917.19 per ounce by 0953 GMT, after hitting more than a one-week high on Wednesday. U.S. gold futures slipped 0.5% to $1,919.90.

Oil prices dropped in early trade on Thursday, adding to heavy losses overnight, after a build in U.S. gasoline inventories pointed to a deteriorating outlook for fuel demand as coronavirus cases soar in North America and Europe.

U.S. West Texas Intermediate (WTI) crude futures fell 27 cents, or 0.7%, to $39.76 a barrel at 0127 GMT, after skidding 4% on Wednesday.

Source: FXWire

Wall Street Breakfast: Never-Ending Stimulus Talks

Never-ending stimulus talks

While stimulus negotiations between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continue today, U.S. stock futures fell 0.3% overnight amid increasing talk of a vote after the election. On the economic calendar, initial jobless claims are likely to fall to 860K for the week ended Oct. 17, down from 898K in the prior week, but still well above the pre-pandemic record of 695K. Earnings season is also heating up, with Q3 results expected from AT&T (NYSE:T), Coca Cola (NYSE:KO), Intel (NASDAQ:INTC), American Airlines (NASDAQ:AAL) and Southwest (NYSE:LUV). Don't forget the last presidential debate. Investors will be on the lookout for possible surprises tonight as President Trump locks horns with Democratic nominee Joe Biden at 9 p.m. ET.

500,000

Tesla (NASDAQ:TSLA) stuck to its delivery target of a half a million vehicles this year, calling Model Y and Shanghai production key factors in hitting the mark. Shares rose 3.3% AH to $436/share on the forecast, after receiving a boost from the EV maker's fifth consecutive quarterly profit. CEO Elon Musk also gave additional details on the full self-driving [FSD] beta rollout, production ramp and the company's future robotaxi system.

Crypto confidence

In competition with Square's (NYSE:SQ) service that allows users to buy and hold Bitcoin (BTC-USD), PayPal (NASDAQ:PYPL) has introduced a new service that enables customers to buy, hold, and sell cryptocurrency directly from their PayPal account. In addition, PayPal signaled plans to increase crypto's utility by making it available as a funding source for purchases at its 26M merchants. PayPal closed 5.5% higher following the announcement yesterday, while Bitcoin recorded similar gains. It's now trading at $12,800, the highest level in over two months.

Vaccine trials resume

News yesterday about the death of a volunteer in AstraZeneca's (NASDAQ:AZN) COVID-19 vaccine trial in Brazil sent the pharma giant's shares lower, though organizers suggested that the deceased man did not end up receiving the vaccine. On that note, U.S. trials of vaccines made by AstraZeneca and Johnson & Johnson (NYSE:JNJ) are expected to restart as soon as this week, according to Operation Warp Speed chief Moncef Slaoui. Temporary pauses in vaccine studies are not uncommon, especially given the size and speed of the trials.

Opioid settlement

Privately held Purdue Pharma, the corporate poster child of the opioid epidemic, has agreed to pay $8.3B to settle federal probes of how it marketed pain pill OxyContin. The figure is largely symbolic, since the company's assets are valued well below that amount, but members of the billionaire Sackler family will make an immediate $225M payment to the government, while the company will pay another $250M after the bankruptcy is concluded. According to court records, the remaining amount owed by Purdue will be counted toward the company's payout to its creditors.

Jony Ive is designing the future of Airbnb

Laying off about a quarter of its workforce earlier this year after getting hammered by the coronavirus pandemic, Airbnb (AIRB) is looking to bring some fresh talent on board. Silicon Valley icon Jony Ive, the longtime head of design at Apple (he left in 2019, after 27 years), will be collaborating with the company on a multi-year deal "to design the next generation of Airbnb products and services." The deal comes ahead of an Airbnb IPO, which is expected before year's end, and will likely be one of the biggest public debuts of 2020.

McAfee goes public again

The cybersecurity giant marks its return to Wall Street this morning at a time when demand is strong for protective software due to the remote work/study trends brought on by the COVID-19 pandemic. McAfee was a public company before Intel (INTC) bought it for $7.7B in 2011, and then later sold a majority stake in it to private equity firm TPG. McAfee, which will begin trading on the Nasdaq under ticker "MCFE," has priced its IPO at $20/share, raising $740M at a valuation of $8.6B.

Facebook Dating comes to Europe

Facebook (NASDAQ:FB) is finally launching its dating service in 32 European countries after an earlier Valentine's Day debut was put on ice due to privacy concerns under GDPR rules. Since launching in the U.S. in September last year, as well as 20 other countries, Facebook Dating claims that the platform has generated 1.5B matches. It's also completely free to use, with no premium offering, unlike other dating services such as Tinder and Hinge (NASDAQ:MTCH), Bumble (NYSE:BX) and Happn.

That didn't take long

The U.K. and EU are restarting talks over a post-Brexit trade deal, less than a week after Boris Johnson suspended the discussions. A speech by EU Brexit negotiator Michel Barnier was credited for breaking the impasse, in which the EU had to "accept once again that it was dealing with an independent and sovereign country and that any agreement would need to be consistent with that status." "Intensive talks" will kick off today, with the goal of reaching an agreement by mid-November.

 

What else is happening...

Ant Group (NYSE:BABA) gets final green light for world's largest IPO.

Goldman cuts Peloton (NASDAQ:PTON) over holiday hiccups, stays bullish on the long term.

GM's Cruise seeks approval for self-driving vehicles without pedal, steering wheel.

Boeing (NYSE:BA) gauging interest in new mid-market plane - WSJ.

Exxon (NYSE:XOM) nearing job cuts, CEO Woods says in email to employees.

Uyghur risk seen disrupting solar value chain - Roth Capital.

 

Wednesday's Key Earnings

Abbott Laboratories (NYSE:ABT) -2.2% with diagnostics up 38% on COVID-19 demand.
Biogen (NASDAQ:BIIB) +0.7% topping estimates, trimming outlook.
Chipotle (NYSE:CMG) -3.4% AH disappointing with lack of guidance.
Kinder Morgan (NYSE:KMI) +0.3% AH swinging to a Q3 profit.
Las Vegas Sands (NYSE:LVS) +4% AH expressing optimism for a complete recovery.
Tesla (TSLA) +3.3% AH knocking out five straight quarters of profit.
Verizon (NYSE:VZ) -0.9% despite strong wireless results, boosting guidance.

Today's Markets

In Asia, Japan -0.7%. Hong Kong +0.1%. China -0.4%. India -0.4%.
In Europe, at midday, London -0.4%. Paris -0.5%. Frankfurt -0.6%.
Futures at 6:20, Dow -0.3%. S&P -0.3%. Nasdaq -0.3%. Crude +0.3% to $40.13. Gold -0.5% at $1920.10. Bitcoin +5.2% to $12833.
Ten-year Treasury Yield flat at 0.81%

Today's Economic Calendar

8:30 Initial Jobless Claims
10:00 Existing Home Sales
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:10 PM Fed's Daly Speech
1:10 PM Fed's Barkin Speech
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
6:00 PM Fed's Kaplan Speech

 

 

Source: Seeking Alpha

Asia markets updates on 22/10/2020

Aussie off 1-week peak, greenback steadies on U.S. stimulus concerns, Asian shares plunge - Thursday, October 22nd, 2020

Market Roundup

    • Oil slips on weaker demand outlook
    • Gold retreats as dollar steadies

Economic Data Ahead

    • (0700 ET/1100 GMT) UK CBI Industrial Trends Survey – Orders (MoM)(Oct

Key Events Ahead

    • (0430 ET/0830 GMT) BoE's Haldane speech
    • (0525 ET/0925 GMT) BoE's Governor Bailey speech

FX Beat

DXY: The dollar index steadied near a 2-month low after stimulus talks between U.S. lawmakers faced a setback on Wednesday when President Donald Trump accused Democrats of being unwilling to craft a compromise on aid. The greenback against a basket of currencies traded 0.05 percent up at 92.70, having touched a low of 92.47 on Wednesday, its lowest since September 2.

EUR/USD: The euro declined, retreating from an over 1-month peak, as the greenback steadied after doubts emerged whether an agreement on a new U.S. fiscal coronavirus aid package could be reached before the election. The European currency traded 0.05 percent lower at 1.1852, having touched a high of 1.1880 on Wednesday, its highest since September 16. Investors’ attention will remain on series of economic data from the Eurozone economies, and EZ Consumer Confidence, ahead of the U.S. unemployment benefit claims, existing home sales, and Kansas Fed Manufacturing Activity. Immediate resistance is located at 1.1880, a break above targets 1.1900. On the downside, support is seen at 1.1820, a break below could drag it below 1.1803.

USD/JPY: The dollar steadied after tumbling to a 1-month low in the prior session after U.S. President Donald Trump and House Speaker Nancy Pelosi boosted hopes an agreement on stimulus was close. House Speaker Nancy Pelosi said before starting talks with Treasury Secretary Steven Mnuchin that there was still a chance for a deal despite resistance from Senate Republicans, though she acknowledged it might not pass until after the election. The major was trading 0.05 percent up at 104.62, having hit a low of 104.34 on Wednesday, its lowest since September 21. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. unemployment benefit claims, existing home sales, and Kansas Fed Manufacturing Activity. Immediate resistance is located at 104.94, a break above targets 105.26 (5-DMA). On the downside, support is seen at 104.40, a break below could take it near at 104.08.

GBP/USD: Sterling eased after rising to a 1-1/2 month peak in the prior session on a Bloomberg report that Brexit negotiations were due to start again after halting abruptly last week. The report also said Britain and the European Union would aim to reach a new trade deal by mid-November. The major traded 0.1 percent lower at 1.3127, having hit a high of 1.3152 on Wednesday, it’s highest since September 7. Investors’ attention will remain on the geopolitical developments, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.3200, a break above could take it near 1.3243. On the downside, support is seen at 1.3085, a break below targets 1.3030. Against the euro, the pound was trading eased 0.05 percent at 90.22 pence, having hit a high of 90.11 on Wednesday, it’s highest since October 14.

AUD/USD: The Australian dollar declined from a 1-week peak as the greenback rebounded across the board. The Aussie trades 0.1 percent down at 0.7108, having hit a low of 0.7020 on Tuesday, it’s lowest since September 25. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.7135, a break above could take it near 0.7151. On the downside, support is seen at 0.7070, a break below targets 0.7047.

NZD/USD: The New Zealand dollar rallied, hovering towards a 1-week peak hit in the previous session, after Reserve Bank of New Zealand's Simone Robbers expressed concern over potential further disruptions from the coronavirus and added that the RBNZ is looking at how to use its monetary policy and alternative monetary policy tools. The Kiwi traded 0.2 percent higher at 0.6665, having touched a low of 0.6552 on Tuesday, its lowest level since October 8. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6690, a break above could take it near 0.6720. On the downside, support is seen at 0.6613, a break below could drag it below 0.6600.

Equities Recap

Asian shares plunged as investors fretted over the slow pace of U.S. stimulus talks and a surge in global cases of COVID-19.

MSCI’s broadest index of Asia-Pacific shares outside Japan slumped 0.3 percent.

Tokyo's Nikkei eased 0.7 percent to 23,474.27 points, Australia's S&P/ASX 200 index declined 0.3 percent to 6,173.80 points. South Korea's KOSPI plunged 0.5 percent to 2,355.05 points.

Shanghai composite index fell 0.4 percent to 3,312.50 points, while CSI 300 index traded 0.3 percent down at 4,777.98 points.

Hong Kong’s Hang Seng traded 0.05 percent lower at 24,740.03 points. Taiwan shares added 0.3 percent to 12,917.03 points.

Commodities Recap

Crude oil prices declined, extending previous session losses, after a build in U.S. gasoline inventories pointed to a deteriorating outlook for fuel demand as coronavirus cases increased in North America and Europe.  International benchmark Brent crude was trading 0.5 percent down at $41.50 per barrel by 0538 GMT, having hit a low of $41.43 on Wednesday, its lowest since October 12. U.S. West Texas Intermediate was trading 0.6 percent lower at $39.78 a barrel, after falling as low as $39.74 earlier, its lowest since October 15.

Gold prices eased from a more than 1-week high recorded in the last session, as the dollar recovered some lost ground after doubts emerged whether an agreement on a new U.S. fiscal coronavirus aid package could be reached before the election. Spot gold slumped 0.5 percent to $1,915.11 per ounce by 0541 GMT, having hit a high of $1931.40 on Wednesday, its highest since October 12. U.S. gold futures were down 0.7 percent to $1,916.00 per ounce.

Treasuries Recap

The U.S. Treasury yields eased, with the benchmark 10-year note yield trading at 0.811 percent and the 30-year yield at 1.614 percent.

Source: FXWire

U.S markets updates on 22/10/2020

Dollar index hits seven-week low with covid stimulus in focus ,Wall street slips, Gold jumps 1%, Oil prices fall as inventory report reflects demand weakness-october 22nd, 2020

Market Roundup

•Canada Sep New Housing Price Index (MoM) 1.2%, 0.5%forecast ,0.5% previous

•Canada Aug Retail Sales (MoM) 0.4%,1.1% forecast, 0.6% previous

•Canada Aug Core Retail Sales (MoM)  0.5%, 0.9% forecast,-0.4% previous

•Canada Trimmed CPI (YoY) 1.8%,1.7% previous

•Canada Median CPI (YoY) 1.9%, 1.9% previous

•Canada Sep CPI (YoY) 0.5%,0.4% forecast,0.1% previous

•Canada Sep CPI (MoM) -0.1%,  -0.1% forecast, -0.1% previous

•Canada Sep Core CPI (MoM) 0.1%,  0.0% previous

• US Seevol Cushing Storage Report 1.180M, 3.923M previous

• US Gasoline Inventories 1.895M,-1.829M forecast, -1.626M previous

• US Heating Oil Stockpiles 0.350M,-0.398M previous

• US Gasoline Production -0.307M,-0.282M previous

• Crude Oil Inventories 0.975M, -1.021M forecast, -3.818M previous

•Brazil Foreign Exchange Flows -1.056B, 0.234B previous

Looking Ahead - Economic Data (GMT) 

•23:50 Japan Foreign Bonds Buying 1,946.5B previous

•23:50 Japan Foreign Investments in Japanese Stocks 1,421.0B previous

•23:50 Australia NAB Quarterly Business Confidence  -15 previous

Looking Ahead - Economic Data (GMT) 

•No significant events

Currencies Summaries

EUR/USD: The euro rose  on Wednesday as dollar dipped after Washington moved closer to agreeing a coronavirus stimulus package. The White House and Democrats in the U.S. Congress moved closer to agreement on a new coronavirus relief package as President Donald Trump said he was willing to accept a large aid bill despite opposition from his own Republican Party.With just two weeks until the U.S. presidential election, Trump signaled a willingness to go along with more than $2.2 trillion in new COVID-19 relief, a figure Democrats have been pushing for months. The euro rose to a one-month high versus the dollar and was up 0.35% at $1.1862 at 1230 GMT. Immediate resistance can be seen at 1.1873 (23.6%fib), an upside break can trigger rise towards 1.1900 (Psychological level).On the downside, immediate support is seen at 1.1860 (38.2% fib), a break below could take the pair towards 1.1800 (50%fib).

GBP/USD: Sterling jumped to a one-week high against the U.S. dollar on Wednesday after the European Union’s Brexit negotiator Michel Barnier told EU lawmakers a trade deal with Britain was still possible. The pound rose 0.9% to $1.3090, its highest since Oct. 13, after Barnier said a deal was within reach if both sides work hard to overcome the sticking points in the coming days. Britain and the EU are now aiming to reach a trade agreement by the end of the month, having missed a self-imposed deadline of mid-October, and their negotiators will speak later on Wednesday. Immediate resistance can be seen at 1.3192 (23.6% fib), an upside break can trigger rise towards 1.3270(Sep 4th high).On the downside, immediate support is seen at 1.3095 (23.6%fib), a break below could take the pair towards 1.3015(50%fib).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday as oil prices tumbled and stop-loss orders were triggered in the market, with the loonie pulling back from an earlier two-week high. The Canadian dollar was trading 0.1% lower at 1.3134 to the greenback. It was the only G10 currency to lose ground against the greenback as hopes rose for a large U.S. coronavirus relief package and the price of oil, one of Canada's major exports, fell. U.S. crude oil futures  settled 4% lower at $40.03 a barrel after U.S. inventory figures showed demand weakening for refined products as global COVID-19 cases spiked.Immediate resistance can be seen at 1.3167 (5DMA), an upside break can trigger rise towards 1.3197 (38.2%fib).On the downside, immediate support is seen at 1.3077 (Daily low), a break below could take the pair towards 1.3007 (Lower BB).

USD/JPY: The dollar edged loweragainst the Japanese yen on Wednesday after U.S. President Donald Trump and House Speaker Nancy Pelosi boosted hopes for a large fiscal stimulus package, prompted some traders sell greenback. The White House and Democrats in the U.S. Congress moved closer to agreement on a new coronavirus-related aid package on Tuesday as Trump said he was willing to accept a large aid bill despite opposition within his own Republican Party. The greenback slipped to a four-week low against the yen, with the Japanese currency set to log its best one-day gain since Aug. 28. Strong resistance can be seen at 104.74 (23.6%fib), an upside break can trigger rise towards 105.19 (38.2%fib).On the downside, immediate support is seen at 104.29 (Daily low), a break below could take the pair towards 104.00 (Psychological level).

Equities Recap

European shares fell for a third straight session on Wednesday, as losses in healthcare and construction stocks countered a lift from encouraging earnings from consumer giant Nestle and telecoms equipment maker Ericsson.

UK's benchmark FTSE 100 closed ended down by  1.91 percent, Germany's Dax ended down  by 1.49 percent, France’s CAC finished the day down by 1.53percent.

Wall Street’s main indexes dipped in choppy trading on Wednesday as investors waited for progress in ongoing negotiations related to the coronavirus stimulus package.

Dow Jones closed down by 0.34 percent, S&P 500 ended down by 0.22  percent, Nasdaq was down  by 0.22 % percent.

Treasuries Recap

Benchmark U.S. Treasury yields rose to four-month highs on Wednesday on hopes that U.S. lawmakers will reach a deal to pass new fiscal stimulus in the near term.

Benchmark 10-year note yields rose two basis points on the day at 0.813% after earlier reaching 0.836%, the highest since June 9.

Commodities Recap

Gold rose 1% to its highest in over a week on Wednesday as investor optimism that a U.S. coronavirus aid package will be announced before the Nov. 3 presidential elections pressured the dollar and bolstered bullion’s appeal as an inflation hedge.

Spot gold jumped 1.1% to $1,926.76 per ounce by 12:15 p.m. ET (1615 GMT), after touching its highest since Oct. 12. U.S. gold futures rose 0.8% to $1,931.10.

Source: FXWire

Europe markets updates on 21/10/2020

Euro gains as investors focus on U.S. stimulus, European stocks fall, Gold hits one-week peak, Oil prices slip as U.S. inventory build stokes fears of supply glut-october 21st,2020

Market Roundup

•UK Sep CPI, n.s.a  109.10 , 108.60 previous

•UK Sep PPI Input (MoM)   1.1%,-0.4% forecast, -0.4% previous

•UK Sep PPI Output (MoM)  -0.1% 0.1% forecast, 0.0% previous

•UK Sep PPI Output (YoY)  -0.9%,-0.9% forecast, -0.9% previous

•UK Sep RPI (MoM ) 0.3%,0.4% forecast, -0.3% previous

•UK Sep RPI (YoY)  1.1%  , 1.2% forecast, 0.5% previous

•UK Sep Public Sector Net Borrowing  35.37B, 32.40B forecast, 35.20B previous

•UK Sep PPI Input (YoY)  -3.7%,-5.5% forecast, -5.8% previous

•UK Sep CPI (YoY) 0.5%, 0.5% forecast, 0.2% previous

•UK Sep CPI (MoM)  0.4%, 0.5% forecast, -0.4% previous

•UK Sep Core RPI (MoM)  0.3%, -0.3% previous

•UK Sep Core RPI (YoY)  1.4%,0.8% previous

•UK Sep Public Sector Net Cash Requirement  31.484B, 25.693B previous

•Belgium Oct Consumer Confidence  -17, -16 previous

•Greek Aug Current Account (YoY)  0.080B, -0.874B previous

•US Mortgage Refinance Index 3,620.5, 3,612.3 previous

•US Mortgage Market Index 794.2, 798.9 previous

•US MBA 30-Year Mortgage Rate 3.02%,3.00% previous

•Canada Sep New Housing Price Index (MoM) 1.2%, 0.5%forecast ,0.5% previous

•Canada Aug Retail Sales (MoM) 0.4%,1.1% forecast, 0.6% previous

•Canada Aug Core Retail Sales (MoM)  0.5%, 0.9% forecast,-0.4% previous

•Canada Trimmed CPI (YoY) 1.8%,1.7% previous

•Canada Median CPI (YoY) 1.9%, 1.9% previous

•Canada Sep CPI (YoY) 0.5%,0.4% forecast,0.1% previous

•Canada Sep CPI (MoM) -0.1%,   -0.1% forecast, -0.1% previous

•Canada Sep Core CPI (MoM) 0.1%,  0.0% previous

Looking Ahead - Economic Data (GMT) 

•13:30 US Seevol Cushing Storage Report 3.923M previous

•14:00 US Gasoline Inventories -1.829M forecast, -1.626M previous

•14:30 US Heating Oil Stockpiles -0.398M previous

•14:30 US Gasoline Production-0.282M previous

•14:30 Crude Oil Inventories -1.021M forecast, -3.818M previous

Looking Ahead - Economic Data (GMT)

•14:00 US FOMC Member Mester Speaks

Fxbeat

EUR/USD: The euro rose  on Wednesday as dollar dipped after Washington moved closer to agreeing a coronavirus stimulus package. The White House and Democrats in the U.S. Congress moved closer to agreement on a new coronavirus relief package as President Donald Trump said he was willing to accept a large aid bill despite opposition from his own Republican Party.With just two weeks until the U.S. presidential election, Trump signaled a willingness to go along with more than $2.2 trillion in new COVID-19 relief, a figure Democrats have been pushing for months. The euro rose to a one-month high versus the dollar and was up 0.35% at $1.1862 at 1230 GMT. Immediate resistance can be seen at 1.1873 (23.6%fib), an upside break can trigger rise towards 1.1900 (Psychological level).On the downside, immediate support is seen at 1.1860 (38.2% fib), a break below could take the pair towards 1.1800 (50%fib).

GBP/USD: Sterling jumped to a one-week high against the U.S. dollar on Wednesday after the European Union’s Brexit negotiator Michel Barnier told EU lawmakers a trade deal with Britain was still possible. The pound rose 0.9% to $1.3090, its highest since Oct. 13, after Barnier said a deal was within reach if both sides work hard to overcome the sticking points in the coming days. Britain and the EU are now aiming to reach a trade agreement by the end of the month, having missed a self-imposed deadline of mid-October, and their negotiators will speak later on Wednesday. Immediate resistance can be seen at 1.3096 (38.2% fib), an upside break can trigger rise towards 1.3190 (23.6%fib).On the downside, immediate support is seen at 1.3012 (50%fib), a break below could take the pair towards 1.2942 (61.8%fib).

USD/CHF: The dollar declined against the Swiss franc on Wednesday as investors looked for an agreement on a U.S. coronavirus stimulus package. President Donald Trump said he was willing to accept a $2.2 trillion aid bill despite opposition from his own Republican Party. But investors were nervous over whether any such package would pass the Republican-controlled Senate. The dollar fell to a six-week low against a basket of currencies as hopes for a pre-election stimulus package led traders to buy riskier currencies. It was last down 0.3% at 92.809, amid the doubts any package could pass the Senate. Immediate resistance can be seen at 0.9055 (38.2 % fib), an upside break can trigger rise towards 0.9076 (50%fib).On the downside, immediate support is seen at 0.9029 (23.6%fib), a break below could take the pair towards 0.9000(Psychological level).

USD/JPY: The dollar declined against the Japanese yen on Wednesday as renewed hopes for a new U.S. stimulus package dented demand for dollar. Lawmakers in Washington have been negotiating intermittently since August, with Democrats arguing for a bigger package to help manage the economic fallout from coronavirus.Trump raised hopes for a breakthrough on Tuesday by saying he was willing to accept a large aid bill, despite opposition from his own Republican party. Strong resistance can be seen at 105.15 (38.6%fib), an upside break can trigger rise towards 105.45 (50%fib).On the downside, immediate support is seen at 104.64 (23.6%fib), a break below could take the pair towards 104.00 (Psychological level).

Equities Recap

European shares fell for a third straight session on Wednesday, as losses in healthcare and construction stocks countered a lift from encouraging earnings from consumer giant Nestle and telecoms equipment maker Ericsson.

At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 1.32 percent, Germany's Dax was down  by 0.74 percent, France’s CAC finished was down by 0.89percent.

Commodities Recap

Gold prices rose to a one-week high on Wednesday as the dollar weakened on renewed hopes for a new U.S. stimulus package ahead of next month’s election.

Spot gold was up 0.5% at $1,915.66 per ounce by 0903 GMT, after hitting its highest since Oct. 13. U.S. gold futures rose 0.2% to $1,919.20 per ounce.

Oil prices eased on Wednesday after a surprise build-up in U.S. crude stockpiles stoked concerns about a global supply glut even as a spike in global COVID-19 cases fuelled fears of a slower recovery in fuel demand.

Brent crude futures for December delivery were at $42.70 a barrel, down 46 cents, or 1.1%, as of 0730 GMT, while December U.S. West Texas Intermediate (WTI) crude futures slipped 43 cents, or 1%, to $41.27. Both benchmarks rose in the previous session.

Source: FXWire

Wall Street Breakfast: Can Tesla Hit 2020 Delivery Target?

Can Tesla hit 2020 delivery target?

All eyes will be on Tesla's (TSLA) Q3 results this afternoon after the electric carmaker reported record vehicle deliveries earlier this month. Despite a global pandemic and economic upheaval, Elon Musk has stuck to a forecast of delivering half a million vehicles in 2020 and his latest commentary will be of particular note. While several analysts believe the goal is attainable, it would mean Tesla must deliver more than 181,600 vehicles in Q4, a 30% increase from record Q3 deliveries.
Good news, bad news

Snap (NYSE:SNAP) soared 24% AH on record Q3 revenues that crushed estimates (+52% to $679M), while attracting the highest-ever number of advertisers to its platform. That's due in part to the summer boycott against Facebook (NASDAQ:FB), which saw advertisers take their money elsewhere due to the social network's stance on hate speech. Meanwhile, the pandemic subscription boom faded for Netflix (NASDAQ:NFLX), which only added a little over 2M subscribers last quarter (vs. 16M in Q1 and 10M in Q2). Shares fell 5.4%, as the company said additions in 2021 would be down compared to this year if the world recovered from the COVID pandemic.

Awaiting stimulus developments

U.S. stock index futures are hugging the flatline with traders in wait-and-see mode as coronavirus aid negotiations continue to drag along. Citing progress in talks, White House Chief of Staff Mark Meadows said the administration's offer is now $1.88T, while House Speaker Nancy Pelosi is pushing for $2.2T along with a number of requirements for how the money should be deployed. The biggest differences center around state and local government aid and liability protections for businesses, but an agreement must be reached by the end of the week in order to have legislation ready before Election Day.

Google hit with antitrust suit

While the U.S. Department of Justice and 11 states filed an antitrust suit against Google (GOOG, GOOGL) on Tuesday, shares of the tech giant closed higher, due to the case's narrower scope and the latter pledging to fight back. It's still being called the highest profile antitrust case by the U.S. government since it took on Microsoft (NASDAQ:MSFT) in the 1990s, which resulted in the company agreeing to share computing interfaces (though it was not broken up). At the heart of the current lawsuit is Google's search business and allegations that the tech giant uses deals with distributors to make sure its search engine is the default for U.S. customers.

Concerns about Nvidia's Arm deal

Chinese technology companies including Huawei have expressed strong concerns to local regulators about Nvidia's (NASDAQ:NVDA) proposed acquisition of Arm (OTCPK:SFTBY), Bloomberg reports, potentially jeopardizing the $40B semiconductor deal. One of the chief concerns is that Nvidia may force Arm to cut off Chinese clients, becoming yet another pawn in a U.S.-Chinese struggle for tech supremacy. Nvidia and Arm have said they're confident they'll get sign-offs from China, the U.K., the EU and the U.S., but it may take as long as 18 months to secure the necessary approvals. NVDA -1.4% premarket.

Shots fired in fintech space

Playing catch up in the business merchant sector, JPMorgan (NYSE:JPM) is rolling out a checking account paired with QuickAccept, pushing into an area pioneered by Square (NYSE:SQ) and PayPal (NASDAQ:PYPL). The service lets businesses take card payments through a mobile app or contactless card reader, while users will see sales hit their Chase accounts on the same day. The company will soon migrate "a large portion" of its more than 3M small business customers to the new service, according to Jen Roberts, CEO of the Chase business banking unit.

High hopes for the holidays

J.C. Penney (OTCPK:JCPNQ) expects to exit Chapter 11 ahead of the holiday season after taking another step toward a sale to U.S. mall owners. Brookfield Property Partners (NASDAQ:BPY) and Simon Property Group (NYSE:SPG) would own and operate its retail assets, while 160 of its real estate properties and its distribution centers will become part of a separate holding company owned by a group of its lenders. J.C. Penney has filed a draft asset purchase agreement, which gets it closer to a deal, but it is still subject to court approval and other conditions (a hearing is set for early November).

Disney denounces California's reopening plans

Walt Disney (NYSE:DIS) is blasting California's new protocols for reopening theme parks, saying the strict guidance would complicate the company's efforts to reopen Disneyland (which has been shut for seven months). Parks can only operate under Tier 4 (yellow) restrictions - limiting capacity to 25%, a reservation will be required and no day of sales. Disneyland Resort President Ken Potrock also pointed to the company's record in reopening theme parks in Florida, Asia and Europe, as well as what he called inconsistent standards for different California businesses.

Hummer EV sport utility truck

The latest edition of GM's (NYSE:GM) plan to shift to "electric and autonomous vehicles through 2025" is the GMC Hummer EV sport utility truck, which will become available next fall at a starting price of $112,595. Specs: Zero to 60 mph in 3 seconds, and estimated best-in-class 1,000 horsepower and 11,500 lb.-ft. of torque, fast charging of up to 100 miles of range in 10 minutes and more than 350 miles of range on a full charge. The Hummer will hit the road alongside significantly cheaper models from rivals, like Ford's (NYSE:F) electric F-150, Tesla's (NASDAQ:TSLA) Cybertruck and pickups from four startup companies.

What else is happening...

Pound jumps as EU says Brexit trade deal still 'within reach.'

Papa John's (NASDAQ:PZZA) founder lays out bearish view on the company.

Cathay Pacific (OTCPK:CPCAY) to cut 24% of its workforce, shut regional airline.

One-hour grocery pickup goes nationwide at Whole Foods (NASDAQ:AMZN).

Bloomberg held talks to take media empire public via Ackman SPAC (NYSE:PSTH) - NYP.

Apollo (NYSE:APO) board panel to review Black's ties with Epstein - WSJ.

Lilly (NYSE:LLY) taps outside advisor for problems at COVID drug plant.

Tuesday's Key Earnings

Lockheed Martin (NYSE:LMT) -3% as 2021 sales outlook lagged expectations.
Netflix (NFLX) -5.7% AH posting slowing subscriber growth numbers.
Philip Morris (NYSE:PM) -5.8% amid slipping tobacco shipment unit volumes.
Procter & Gamble (NYSE:PG) +0.4% reporting a 9% rise in organic sales.
Snap (SNAP) +24% AH as advertisers lifted platform spending.
Texas Instruments (NASDAQ:TXN) +2.3% AH with upside guidance driven by auto rebound.
Travelers (NYSE:TRV) +5.6% benefiting from underwriting gains.

Today's Markets

In Asia, Japan +0.3%. Hong Kong +0.8%. China -0.1%. India +0.4%.
In Europe, at midday, London -1.2%. Paris -0.9%. Frankfurt -0.7%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq flat. Crude +0.3% to $1921.40. Gold +0.4% at $1950.20. Bitcoin +3.7% to $12233.
Ten-year Treasury Yield +1 bps to 0.8%

Today's Economic Calendar

7:00 MBA Mortgage Applications
8:50 Fed's Brainard: Economic and Monetary Policy Outlook
10:00 Fed's Mester: U.S. Monetary Policy
10:30 EIA Petroleum Inventories
12:00 PM Fed's Daly Speech
12:00 PM Fed's Kashkari Speech
12:00 PM Fed's Kaplan: “The Current State of the Economy”
1:00 PM Fed's Barkin: “Rural Virginia’s Economic Recovery”
1:00 PM Results of $22B, 20-Year Bond Auction
2:00 PM Fed's Beige Book

 

 

Source: Seeking Alpha