The strongest to the weakest of the major currencies
The AUD is the strongest and the USD is the weakest as the North American session begins. US stocks are higher after declines on Friday. The US yields are trading higher after gains on Friday and the yield curve is getting steeper.
The conflict enters into the 2nd week after the atrocities of the terrorist act from Hamas last week. U.S. Secretary of State Antony Blinken is returning to Israel as part of a diplomatic effort to prevent the conflict between Israel and Hamas from spreading in the region. Israel has imposed a blockade on Gaza and is preparing for a possible ground invasion. Blinken has visited several Middle Eastern countries in an attempt to contain the conflict. Tensions are escalating as Iran, which supports Hamas, has warned of further escalation if Israel continues its attacks on Palestinians. United Nations Secretary-General Antonio Guterres expressed concern about the situation, stating that the Middle East is on the brink of a crisis.
There is limited economic data with the Empire Manufacturing Index for October schedule for release at 8:30 AM (-7.0 versus 1.9 last month). Canada manufacturing sales will be released at 8:30 AM ET as well. This week in the US, the focus will be on Tuesday’s release of U.S. retail sales figures for September, which will provide insight into consumer spending trends. Additionally, this week will feature speeches from various Federal Reserve officials, but the spotlight will be on Fed Chair Jerome Powell’s remarks on Thursday at the Economic Club of New York, especially as it precedes the central bank’s blackout period.
Oil prices are lower after gains last week of 5.97%. Traders are closely monitoring developments in the Israel-Hamas conflict due to its potential impact on global oil supply. While Israel’s oil production is relatively small, concerns are rising about potential escalations that could affect major oil-producing countries like Saudi Arabia, Iran, and the United Arab Emirates. Uncertainty and worries about the conflict continue to influence the oil market.
A snapshot of the markets as the NA session gets underway shows:
- Crude oil is trading down $0.22 or -0.26% at $87.47. At this time on Friday, the price was trading at $86.41
- Spot gold is trading down $-17.25 or -0.89% at $1915.22. At this time on Friday, the price was trading at $1895.22
- Spot silver is trading down -$0.13 or -0.56% at $22.57. At this time on Friday, the price was trading at $22.27
- Bitcoin is trading at $27,750. At this time on Friday, the price was trading at $26,816
In the US premarket for US stocks, futures are implying a higher open. The major indices snapped a four-day winning streak on Thursday, and followed up with losses on Friday for the broader S&P and NASDAQ. The Dow industrial average closed marginally higher on Friday.
The NASDAQ closed the week lower (-0.18%), while the S&P and the Dow industrial average held onto gains (up 0.45% and up 0.79% respectively).
Earnings continue this week with some financials mixed with other diversified large-cap stocks. Scheduled to announce earnings this week include:
- Tuesday: Bank of America, Goldman Sachs, Johnson & Johnson, Ericsson, United Airlines, JB Hunt
- Wednesday: P&G, Morgan Stanley, Tesla, Netflix
- Thursday: Philip Morris, AT&T, American Airlines, TSMC, Nokia, Intuitive Surgical, CSX
- Friday: American Express
A snapshot of the stock futures currently shows
- Dow Industrial Average futures are implying a gain of 175 points. Yesterday the index rose 39.15 points
- S&P index futures are implying a gain of 17.25 points. Yesterday the index fell -21.81 points
- NASDAQ futures are implying a gain of 34 points. Yesterday the index fell -166.98 points
In the European equity markets, the major indices are moving higher
- German DAX, up 0.14%
- France’s CAC, up 0.22%
- UK’s FTSE 100, up 0.38%
- Spain’s Ibex, up 0.48% up 0.35%
- Italy’s FTSE MIB, up 0.35% (10 minute delay)
In the Asia Pacific market:
- Japan’s Nikkei index fell -2.03%
- China’s Shanghai composite index fell -0.46%
- Hong Kong’s Hang Seng index fell -0.97%
- Australia’s S&P/ASX index -0.35%
In the US debt market, yields are moving higher with the yield curve steepening. Last week yields moved higher after higher CPI and 3 auctions which showed tepid investor demand
- US 2Y T-NOTE: Rate 5.075% up to .1 basis points Source Link
