News

Trump’s Optimism Lifts Risk Sentiment

Equities

Major US stock-index futures finished higher as President Donald Trump boosted risk sentiment. The latter revealed in a tweet that the trade talks between China and the United States went well on the first day of the negotiation. Today, President Trump will be meeting with the Chinese vice premier to discuss further ending the trade disputes between the world's largest economies. The Dow Jones Industrial Average futures soared to a high of 26632, the S&P500 futures rose to 2955, and the Nasdaq futures advanced to 7813. Stock futures will remain subjected to trade-talks headlines.

USD

The dollar index, which measures the greenback against the basket of major currencies, finished sharply lower as trade talks supported risk sentiment. DXY dropped to a two-week low of 98.68. The Core Consumer Price Index remained at 2.4% in September, the highest level since 2009. The US 10-year yields rallied to a one-week high of 1.672%, the USDJPY advanced to 108.13, and the EURUSD inched higher to $1.1034 to find resistance at the 100-day simple moving average.

GBP

The British pound soared against rivals amid rising hopes of reaching a Brexit deal ahead of the deadline. The Irish prime minister stated that the meeting with Boris Johnson was very positive, and a Brexit deal could be finalized before the end of October, avoiding a disorderly Brexit. The GBPUSD climbed to a two-week high of $1.2469, and the GBPJPY rose to a high of 134.66.

Metals

Gold prices plunged on enhanced investors' risk appetite. The developments on the Brexit front and the trade talks between China and the United States supported investors' in fleeing safe-haven assets. The price of a gold ounce declined to a low of $1491, the price of a silver ounce tumbled to $17.38, while palladium hovered above $1700.

Oil

Oil prices edged higher, supported by the positive sentiments coming from the US-Sino trade negotiations, and the recent developments in the Gulf. President Donald Trump tweeted that the current trade talks between China and the United States are going well, giving investors hope of putting an end for the trade clash between the world's largest economies, which devastated the global economic outlook. On the other hand, Iranian officials stated that two rockets had struck an Iranian tanker sailing through the Red Sea. The incident would revive the geopolitical tensions, and intensify investors' woes over oil supplies. The West Texas Intermediate crude future rose to $54.71, and Brent future climbed to $60.44.

Major Economic Events

GMT Country Event Expectation Previous

12:30

CA

Employment Change (Sep)

10.0

81.1

12:30

CA

Unemployment Rate (Sep)

5.7%

5.7%

14:00

US

Michigan Consumer Expectations (Oct) 

81.7

83.4


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