October 17, 2022 13:09:06
Stocks are expected to start the new trading week on a positive note. Investors are waiting for key earning reports amid a quiet market sentiment. The lack of any major fundamental data led to a recovery in the equity market after a wild previous week. This could however be a reaction to the oversold market condition.
Dow Jones futures added 290 points, and S&P 500 futures and NASDAQ jumped 1.2%, and 1.4% respectively. The market sentiment is favored by a relief rally in the Pound and commodity market. The positive sentiment is extended in the U.S pre-opening session followed by the rally in Europe’s shares, bonds, and major currencies. In a surprising move, Britain’s new finance minister Jeremy Hunt reversed “almost all” tax measures proposed by Prime Minister Liz Truss and his predecessor Kwasi Kwarteng.
Investors brace for a busy earning week, which will provide a glimpse into how companies and businesses are performing amid heighten market volatility and macro headwinds. Bank of America soared over 3% in the pre-opening market session after better-than-expected quarterly results.
Further, the gold market is registering gains after a turbulent week after the New York Federal Reserve reported weaker-than-expected manufacturing activity. The index fell to a reading of -9.1 in October from 1.5 in the previous month. As of writing, XAU/USD is reading at $1,666, up 1.40% for the day.
In other developments, China unexpectedly delayed the release of third-quarter economic growth numbers, a day before they were supposed to be released.
The Japanese Yen dropped to a near 32-year low around 149.00 against the US dollar. Masato Kanda, Japan’s top currency diplomat said the policymakers would respond if there is excessive currency fluctuation
Crude oil prices rose today on the OPEC+ member’s decision as they ignored the US push for a smaller cut.
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