- European indices finished today's session higher on Tuesday, with DAX also rising above 14,430, the highest since early June. Oil and gas stocks jumped more than 4.5% to lead gains in the Old Continent, followed by a 2.5% gain in mining shares as commodities prices rebounded.
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ECB's Simkus said 50 bp and 75 bp hikes are both possible in December
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Upbeat moods prevail on Wall Street as investors digested a slew of corporate results and Fed speeches. The Dow Jones rose 0.90%, S&P 500 gains 0.95%, while Nasdaq erased early losses and jumped 0.80%
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On the earnings front, Best Buy stock surged over 11% after the electronic retailer lifted its 2023 financial outlook and beat earnings forecasts. Zoom Video Communications tumbled nearly10% in premarket after the company cut its annual revenue forecast, however buyers became more active later in the session.
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Fed's Mester believes that inflation expectations remain anchored while labor demand is still outpacing supply workers. In most sectors, wage gains are still behind inflation rise
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Oil briefly jumped over 2.0% on Tuesday after WSJ reported that the G7 and the EU plan to introduce a cap on Russian oil prices tomorrow in the region from $60 per barrel to $70 barrel. However buyers gave up most gains in the evening, following news that EU plans to soften cap price in advance of approval. Earlier Saudi Energy Minister Prince Abdulaziz bin Salman signaled that the kingdom is ready to reduce production further to balance supply and demand if needed.
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NATGAS price rose briefly over 5.0%, however erased some gains later in the session as the European Commission proposed a cap on gas prices of €275/MWh, while workers at the largest US rail union voted against a tentative contract deal reached in September, raising the possibility of a year-end strike that could disrupt coal deliveries and force power generators to burn more gas.
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Sentiment in the cryptocurrency market slightly improved during today's session. Bitcoin is currently gaining over 2.5% and Ethereum rose over 1.3%. According to a Wall Street Journal, crypto billionaire Justin Sun, creator of the TRON blockchain, is still considering a deal with FTX and has indicated that "all options are still on the table."
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When it comes to the forex market, the US dollar gave back some gains from the previous session as investors cautiously awaited the latest Fed minutes that could guide the outlook for US rates. Tomorrow’s publication may cause large fluctuations of USD currency pairs.
US500 once again approaches psychological resistance at 4000 pts, as it seems that investors looked past new China covid lockdowns and focus on tomorrow’s FOMC minutes. Today, several Fed members are set to speak, including George and Bullard, which may be a source of volatility in the evening. Source: xStation5
