Morning wrap (20.10.2021)

6:46 AM 20 October 2021
  • Indices from Wall Street built onto earlier gains and once again moved higher. S&P 500 gained 0.74%, Nasdaq moved 0.71% higher and Dow Jones added 0.56%

  • Stocks in Asia traded mixed - Nikkei and S&P/ASX 200 posted small gains, Kospi dropped and indices from China struggled to find common direction

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

  • Biden said he believes $1.75-1.90 trillion tax and spending deal is within reach

  • People's Bank of China left 1- and 5-year loan prime rates unchanged. Main interest rates in China were left unchanged for the past 18 months already

  • Chinese authorities met with coal producers and agreed to work to bring down prices to a "reasonable range"

  • Morgan Stanley expects Brent at $95 per barrel in Q1 2022. Bank boosted its long-term Brent price forecast to $70 per barrel ($60 previously)

  • Netflix reported Q3 revenue at $7.48 billion (exp. $7.48 billion) and EPS of $3.19 (exp. $2.56). Company reported an addition of 4.4 million subscribers, much better than 3.84 million expected. Stock jumped in the after-hours trading

  • Japanese exports increased 13% YoY in September (exp. 11% YoY) while imports were 38.6% YoY higher (exp. 34.4% YoY). Trade balance stood at -622.8 billion JPY (exp. -591 billion JPY)

  • API report pointed to a 3.3 million barrel build in oil inventories (exp. 1.9 mb)

  • Bitcoin tested all-time highs overnight but has pulled back slightly since

  • Precious metals trade lower with gold being an exception

  • Oil and industrial metals drop

  • CHF and JPY are the worst performing major currencies while AUD and NZD lead gains

Bitcoin tested all-time highs from April during today's Asian session. However, bulls were unable to break above and paint a fresh record, and the coin has pulled back slightly since. Source: xStation5

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