Morning wrap (20.10.2020)

8:37 am 20 October 2020

  • US indices finished yesterday’s trading near daily lows. S&P 500 dropped 1.63%, Nasdaq declined 1.65% and Dow Jones closed 1.44% lower. Russell 2000 declined 0.98%

  • Stocks in Asia are trading lower. Nikkei drops 0.5%, S&P/ASX 200 trades 0.7% lower and Kospi declines 0.1%. Indices from China trade mixed

  • DAX futures point to a lower opening of the European session

  • Pelosi and Mnuchin “continued to narrow differences” during talks yesterday but still have not reached an agreement

  • Trump confirmed he will take part in the upcoming presidential debate but expressed dissatisfaction over the fact that host will be able to mute microphones

  • A 7.4 magnitude earthquake was registered off the southern coast of Alaska. Tsunami warning has been issued and nearby settlements have been evacuated

  • RBA Minutes showed that Australian central bankers will put greater emphasis on actual, rather than forecasted inflation. In other news, RBA’s Kent said that there is a need for continue policy support

  • Delay to further output cuts was not discussed at yesterday’s OPEC+ JMMC meeting 

  • Reuters poll sees 40% chance of a failure to reach EU-UK trade deal

  • CEO of Moderna said that interim results of Covid-19 Vaccine trials are expected in November

  • IBM reported Q3 EPS of $2.58 and revenue of $17.6 billion. Results were lower than a year ago but in line with preliminary figures released earlier this month

  • AUD and NZD are the worst performing major currencies while EUR and CHF gain the most.

Almost 340 thousand new coronavirus cases were reported yesterday. Source: worldometers, XTB

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