• Solid gains in Europe
• Investors continue to wait for the results from the US presidential election
• US crude inventories fall the most in 2 months
• Investors continue to wait for the results from the US presidential election
• US crude inventories fall the most in 2 months
European indices finished today’s session higher. German DAX 30 rose 2% and other major indexes gained between 0.4% to 2.5% as investors continue to wait for the results from yesterday’s tighter than expected US election. On the data front, German and Eurozone services PMIs have been revised higher, pointing to smaller contractions in October. Meanwhile Italy reported highest number of deaths caused by the COVID-19 in nearly six months on Tuesday and Hungary announced a new state of emergency.
US indices are trading higher led by Tech-stocks. Early vote count pointed to a close race for the White House as there's no clear winner yet and ballots continued to be counted in many states. At the moment, results showed that Biden swept up 238 electoral votes while Trump picked up 213 votes and won Florida, Texas and is leading in Pennsylvania, North Carolina and Georgia. Biden win Wisconsin and is leading in Nevada, Arizona and Michigan. Earlier, Trump tried to claim victory in a speech at the White House. According to report from Fox Business, Trump is preparing to send in attorneys and contest election results in the remaining states. "Good chance we won’t know president for another month. Still odds are long for Trump winning, Fox Business add. Meanwhile chances faded for Democrats to take over the Senate, lowering the prospects of higher antitrust scrutiny and capital gains taxes. These news are beneficial for major tech-companies. Amazon, Apple and Microsoft stocks all rose least 3%. Facebook is trading 7% higher, while Google-parent Alphabet jumped more than 6%. Meanwhile the number of coronavirus hospitalizations in US surpassed 50k, the highest level since August 7th. Number of new COVID-19 infections continue to rise across the country, with Pennsylvania, Wisconsin, Idaho, Ohio, Minnesota, New Mexico and Maine all reporting record-high daily figures on Tuesday.
U.S. crude futures are trading 3.2 % higher, while the international benchmark Brent contract added 3.5 % amid a big drop in US crude inventories. EIA data showed US crude stocks fell by nearly 8 million barrels in the latest week, the biggest decline in 2 months. Yesterday, API report also showed a huge draw in crude oil inventories. Elsewhere, gold futures are trading 0.38% lower around $1,900/oz, while silver fell 0.9% and is trading around $23.94/ oz.
GOLD – pullback started after buyers failed to break above the major resistance level at $1920 /oz which is additionally strengthened by 50 SMA (green line ) and downward trendline. Should current sentiment prevails, support at $1865.70 may come into play. Source: xStation5
