Daily summary: US stocks muted as earnings season kicks off

• European finished mostly higher
• Inflation in the US remains elevated
• FOMC minutes reveal that tapering may start this year

European indices finished today's session mostly higher, DAX up 0.7%  boosted by a 2.6% gain across tech companies after Germany's SAP lifted its full-year guidance for a third time following a strong quarterly showing as more customers shift their IT operations to the cloud. A decline in banks led to UK's FTSE 100 gaining only 0.2%, while indices of Spain and Italy lagged. 

Mixed moods prevail on Wall Street, with the Dow Jones hovering around the flatline and both the S&P 500 and the Nasdaq rising, boosted by gains in tech shares as yields declined following higher-than-expected inflation figures. Today's CPI report showed US inflation remained well above the Fed's target at 5.4% and confirms that inflationary pressures remains high.  Also, JP Morgan Chase and Delta Air Lines got the US earnings season off to a good start with better-than-expected figures.  Meanwhile, the FOMC minutes showed that most central bankers remarked that the standard of "substantial further progress" had been met with regard to the Committee's price-stability goal or that it was likely to be met soon. Participants noted that if a decision to begin tapering purchases occurred at the next meeting, the process of tapering could commence with the monthly purchase calendars beginning in either mid-November or mid-December.

Precious metals prices rose sharply during today's session amid rising concerns about inflation and the global energy crisis. On Wednesday, gold price rose by 2% and the price of silver jumped over 3.0%. A weaker dollar and lower US Treasury yields also contributed to today's bullish gains.

Although the upward movement in the crude oil market has slightly slowed down in recent days, the main trend still remains bullish. Technically looking at the OIL.WTI chart, the lower limit of the 1:1 structure at $ 81.75 remains the key support in the short term. According to the Overbalance methodology, as long as the price sits above, another upward impulse towards 2018 highs around $ 85.50 may be launched.

OIL.WTI interval H4. Source: xStation5