Posted at 03 November 2020 / Categories Market Roundups
Market Roundup
• Brazil Oct Markit Manufacturing PMI 66.7, 64.9
•US Redbook (YoY) 1.2%,1.2% previous
•US Redbook (MoM) 3.2%,0.8% previous
•New Zealand GlobalDairyTrade Price Index-2.0%, 0.4% previous
•US Oct ISM-New York Index 814.8,807.3 previous
•US Oct ISM NY Business Conditions65.1%, 56.1% previous
•US Sep Factory Orders (MoM )1.0% forecast, 0.7% previous
•US Durables Excluding Defense (MoM) 3.4%, 3.4% previous
•US Sep Factory orders ex transportation (MoM) 0.5%,0.7% previous
Looking Ahead Economic Data(GMT)
•23:50 Japan Monetary Base (YoY) 14.3% previous
•00:00 New Zealand ANZ Commodity Price Index (MoM) -0.2% previous
•00:00 US Total Vehicle Sales 16.50M forecast, 16.30M previous
•00:30 Australia Sep Retail Sales (MoM) -1.5% forecast, -4.0% previous
•00:30 Australia Retail Sales (QoQ) (Q3) 6.0% forecast, -3.4% previous
•01:45 China Oct Caixin Services PMI 54.8 previous
Looking Ahead - Events, Other Releases (GMT)
• 23:50 Japan BoJ Monetary Policy Statement
Currencies Summaries
EUR/USD: The euro ticked higher on Tuesday as investors refrained from taking on new large positions while voters head to the polls in the U.S. election. The small rise in euro followed Monday’s drop as investors were cautious in the wake of new lockdown restrictions governments have imposed across Europe to fight the spread of COVID-19.Market participants expect a volatile day on Wednesday when the results of the United States presidential election become clear. Immediate resistance can be seen at 1.1717 (50%fib), an upside break can trigger rise towards 1.1742 (30DMA).On the downside, immediate support is seen at 1.1671 (38.2% fib), a break below could take the pair towards 1.1616 (23.6% fib).
GBP/USD: Sterling strengthened against dollar on Tuesday on the back of a broadly weaker dollar on U.S. presidential election day, ignoring that the European Union and Britain have so far failed to reach an agreement on three persistent sticking points in Brexit talks. The impasse suggests any breakthrough in securing a trade deal is still a way off, though most investors remain hopeful a deal can be struck this month. Sterling was last trading up 0.6% at $1.3063, its highest in a week. The pound has gained about 4% in the last six months as the dollar’s strength faded. Immediate resistance can be seen at 1.2997 (9DMA), an upside break can trigger rise towards 1.3049 (50%fib).On the downside, immediate support is seen at 1.2956 (38.2% fib), a break below could take the pair towards 1.2846 (23.6%fib).
USD/CAD: The Canadian dollar climbed to a near two-week high against a broadly weaker greenback on Tuesday amid investor optimism that the outcome of the U.S. election would clear the way for U.S. economic stimulus. The price of oil, one of Canada's major exports, rose but concerns over surging coronavirus cases around the world capped further gains.U.S. crude prices rose 3.5% to $38.09 a barrel, while the Canadian dollar was trading 0.8% higher at 1.3106 to the greenback. The currency was on track for its biggest gain since June 1, while it touched its strongest intraday level since Oct. 21 at 1.3102. Immediate resistance can be seen at 1.3147(38.2%fib), upside break can trigger rise towards 1.3202 (50%fib).On the downside, immediate support is seen at 1.3086 (23.6%fib), a break below could take the pair towards 1.3000 (Psychological level).
USD/JPY: The dollar edged higher against the Japanese yen Tuesday as Americans headed to the polls and as investors increased bets that Democrat Joe Biden will win Tuesday’s U.S. presidential election and launch a large new stimulus package. Biden has led in national polls but President Donald Trump is close in enough swing states to piece together the 270 state-by-state Electoral College votes needed to hold the presidency, which he won in a surprise 2016 election result. The Federal Reserve will conclude a two-day meeting on Wednesday. U.S. Jobs data for October is also in focus on Friday. Strong resistance can be seen at 104.84 (50% fib), an upside break can trigger rise towards 105.16 (61.8% fib).On the downside, immediate support is seen at 104.52 (38.2%fib), a break below could take the pair towards 104.08 (23.6% fib).
Equities Recap
Banking and auto stocks propelled the European stocks benchmark to a one-week high on Tuesday, while investors anticipated a clear win for Democrat Joe Biden in the U.S. presidential election would lead to more economic stimulus.
UK's benchmark FTSE 100 closed up by 2.06 percent, Germany's Dax ended up by 1.78 percent, France’s CAC finished the day up by 1.85 percent.
U.S. stocks jumped on Tuesday as investors bet that one of the country’s most divisive presidential races would end with a clear victory for Democratic nominee Joe Biden and a swift deal on more fiscal stimulus.
Dow Jones closed up by 2.06% percent, S&P 500 closed up by 1.78 % percent, Nasdaq settled up by 1.85% percent.
Treasuries Recap
U.S. Treasury yields marched higher and the yield curve steepened on Tuesday as the market awaited results from the national election.
The benchmark 10-year yield, which earlier rose to 0.898%, its highest level since June, was last up 3.8 basis points at 0.8857%.
Commodities Recap
Oil prices rose near 2% on Tuesday, advancing with other financial markets on U.S. Election Day although traders were bracing for volatility depending on the voting results and as surging coronavirus cases around the world fed worries about fuel demand.
Brent futures rose 74 cents, or 1.9%, to settle at $39.71 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 85 cents, or 2.3%, to settle at $37.66.
Gold rose on Tuesday as the dollar slipped and ambiguity regarding the declaration of U.S. presidential results prompted investors to seek the refuge of the safe-haven metal.
Spot gold rose 0.6% at $1,906.83 per ounce by 11:49 a.m. EDT (1649 GMT). U.S. gold futures gained 0.8% to $1,907.50.