Morning wrap (27.10.2021)

• US indices finished yesterday's trading a touch higher. S&P 500 gained 0.18%, Dow Jones moved 0.04% higher and Nasdaq added 0.06%. US futures traded sideways during the Asian session amid mixed earnings

• Stocks in Asia traded mostly lower today. Nikkei dropped 0.2%, S&P/ASX 200 moved 0.1% higher and Kospi declined 0.8%. Indices from China traded lower

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

• US President Joe Biden told lawmakers that he wants spending package to be passed as soon as possible 

• United States revoked authorization for the US subsidiary of China Telecom and ordered it to cease US operations within 60 days

• Microsoft reported Q3 revenue at $45.32 billion (exp. $43.97 billion) and Q3 EPS at $2.27 (exp. $2.07). Company weaker Windows sales with global PC supply constraints. Cloud sales remain solid. Stock gained in the after-hours trading

• Alphabet reported Q3 revenue at $65.12 billion (exp. $63.34 billion) and Q3 EPS at $27.99 (exp. $23.48). Cloud revenue reached $4.99 billion (exp. $5.07 billion) while YouTube ad revenue reached $7.20 billion (exp. $7.40 billion). Shares traded slightly lower in the after-hours trading

• Australian CPI inflation remained unchanged at 0.8% QoQ in Q3 2021. On a year-over-year basis, CPI slowed from 3.8% YoY in Q2 to 3.0% YoY in Q3 (exp. 3.2% YoY)

• Chinese industrial profits jumped 16.3% YoY in September. On year-to-date basis profits were 44.7% YoY higher

• API report pointed to a 2.32 million barrel build in oil inventories (exp. 1.5 mb)

• AUD and JPY are the best performing major currencies while CHF and CAD lag the most

• Bitcoin tested $60,000 area during the Asian session

• Precious metals, industrial metals and oil drop. Natural gas trades slightly higher

AUDUSD resumed upward move after a retest of the support at 38.2% retracement. The pair is being supported by Australia Q3 CPI data today and tests 200-session moving average (purple line). Note that this moving average halted upward at the end of last week. Source: xStation5