- Wall Street surged on Friday despite weaker earnings from Apple and Amazon. All major US indices bar Russel2000 soared to new records. US500 closed in on 4600 points level.
- The Wall Street rally is still greatly helped by huge overliquidity – Fed Reverse Repo operations still stand at $1.5 trillion. The Fed will be under pressure to address rising inflation risks at the meeting this week (decision on Wednesday).
- EURUSD reversed sharply lower after post-ECB gains on Thursday – the pair slid back to around 1.1550.
- Strong US dollar capped rally on precious metals – price tumbled back below $1800 but remains in a mid-term rebound phase.
- JAP225 rallied over 2% on Monday as the LDP won majority in the latest elections – investors expect a fresh stimulus from the government.
- Most Asian economies saw some rebound in economic activity led by SouthEast Asia as pandemic curbs were lightened. The Chinese Caixin PMI inched up from 50 to 50.6 points and the Japanese manufacturing PMI surged from 51.5 to 53.2 points but South Korea bucked the trend seeing a decline from 52.4 to 50.2 points.
- Cotton prices opened today at the highest level since 2011 – some 200% up from 2020 pandemic lows.
- Cryptocurrencies are mostly stable with Bitcoin hovering around $60000 and Ethereum above $4000.
US100 broke previous highs comfortably on Friday, capping an impressive October rally. Will it be able to continue or will we see a wave-C similar to previous patterns? Source: xStation5
