Morning Wrap (28.10.2024)

• We are starting a new week of trading in the financial markets. Futures are currently pointing to a higher opening in Europe and the US after the weekend. Nasdaq futures are currently adding 0.56%, while French CAC40 futures are adding 0.47%.

• After the weekend, investors are turning their attention to oil, the Japanese yen and Chinese indices.

• Oil is up more than 5% at the start of the week after Israel’s missile attack did not affect fuel/nuclear infrastructure, calming the market.

• The Japanese Nikkei is up 1.85% while the Japanese yen is down 0.33% against the dollar after Japan’s ruling coalition lost its majority for the first time in 15 years. As a result, there may be a sense that monetary policy normalization will slow down under political pressure.

• Chinese indices are gaining slightly after the People’s Bank of China (PBOC) announced it will conduct an unconditional reverse repo operation and will do so on a monthly basis to maintain much-needed liquidity in the market.

• CNN reports that MCD will resume selling Quarter Pounders sandwiches at all of its restaurants after an internal investigation found the issue appears to be limited to a specific ingredient and geographic region. The company said any contaminated products related to the outbreak have been removed from its supply chain.

• Boeing is planning a capital raise of more than $15 billion, financial media reported, as it seeks to shore up finances battered by the ongoing strike.

• Precious metals are trading slightly higher early Monday, but are currently trading at a 0.25% gain.

A heatmap of volatility currently being seen in the FX market. Source: xStation