Daily summary: Dow Jones hovers around record high, Bitcoin tops $66k

6:05 PM October 20, 2021
  • European stocks finished mixed 
  • Dow Jones near record highs
  • Bitcoin reaches new all-time high

European indices ended the session in mixed moods, as investors digested an avalanche of corporate earnings results. Swiss food giant Nestle, food delivery firm Deliveroo and Swiss drugmaker Roche lifted guidance after upbeat third quarter figures while French luxury group Kering and Dutch semiconductor company ASML posted weak earnings. Renault dropped almost 3% after Reuters reported the carmaker expects to produce at least 300,000 fewer vehicles this year due to the global shortage of semiconductor chips. On the data front, Germany's producer prices surged 14.2% in September, the most since October 1974 and well above market expectations, while UK consumer price inflation unexpectedly eased to 3.1% in September, though little-changed from August's nine-year high of 3.2%, while factory gate prices jumped the most in a decade.

US indices are trading higher, with Dow Jones near record highs as investors continued their buying on robust corporate results, while the Nasdaq lagged as technology stocks took a breather. Earnings from both Verizon and Biogen beat market consensus and both companies increased their full-year guidance. Meanwhile, shares of Netflix came under pressure after the company said it expects that margins in the fourth quarter will be less than half of the same period last year. Tesla and IBM will release their quarterly figures after markets close. Crypto shares also gained as Bitcoin climbed to a fresh all-time high. Ongoing rally is fuelled by the successful debut of the first US bitcoin futures exchange-traded fund -  ProShares Bitcoin Strategy ETF. Altcoins are widely following the uptrend, and adding fuel to the rally. 

On the commodities markets, crude oil prices erased early losses after the latest EIA report showed a surprise crude oil inventory decline. US crude oil inventories fell by 0.431 million barrels, the first decline in four weeks and compared with analysts' estimates of a 1.857 million increase. Currently WTI oil is trading 0.75% higher while Brent gains 0.50%. Elsewhere, gold prices rose over 1% while silver added more than 3% due to the weaker USD and inflation concerns. The yield on the benchmark 10-year Treasury note rose above 1.64%, but it did not affect precious metals prices as it did in the past.  

US30 is testing its all-time high at 35548 pts as sentiment was boosted by better-than-expected earnings reports and a new record for Bitcoin. Also recently medium-term 50-day SMA (green line) crossed above the long-term 200-day SMA (red line). This has formed a bullish ‘golden cross’ which supports a bullish scenario. Should break higher occur, upward move may accelerate towards 35830 pts which is marked with 113% external Fibonacci retracement. On the other hand, if sellers manage to halt advances, then another downward move towards the support zone around 35000 pts may be launched. Source: xStation5

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