News

US Stock Futures Hold Steady, Stimulus Talks in Focus

Equities

Major US stock-index futures were trying to trim losses during the Asian session following the massive drop ahead of yesterday's close. Investors are waiting on the sideline for the stimulus talks updates. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are still trying to find a compromise. Pelosi is hoping that by the end of the day, they would know whether a stimulus bill can be passed ahead of the US elections. The Dow Jones Industrial Average futures traded near 28150, the S&P500 futures held steady near 3435, while Nasdaq futures recovered slightly to 11715.

Dollar

The dollar index, which measures the greenback against a basket of major currencies, trimmed losses, rising to 93.50, as the clock is ticking for reaching a compromise on stimulus. Until now, the Republicans and Democrats have failed to reach a deal that would support the economic recovery, and the time is running out as we are approaching the elections. The dollar strength will remain vulnerable to any headlines concerning stimulus.

AUD

The Australian dollar continued to weaken against rivals amid increased chances of further monetary easing. The minutes of the last monetary policy meeting revealed that the board is considering taking more action by reducing the targets for the cash rate, and the 3-year yields towards zero. Moreover, the Reserve Bank of Australia Assistant Governor Christoper Kent stated that the bank is considering the case for further easing. The AUDUSD declined to $0.7031, and the EURAUD soared to 1.6742, the highest level since late May.

Metals

Gold prices continued to trade in a tight range awaiting fresh fundamental drivers. Investors will closely monitor the deadline for reaching a deal over fiscal stimulus. The price of a gold ounce is trading near $1900, the price of a silver ounce held steady near $24.40, and palladium futures were almost unchanged near $2355.

Oil

Oil prices were a bit under pressure as the rising coronavirus cases raised investors' concerns. The resurgence of covid19 in Europe is weighing on demand outlook, as it could disrupt the economic recovery. On the other hand, OPEC+ are considering to continue with the plan of reducing cuts to 5.8 million barrels per day in January, from 7.7 million barrels per day currently. The West Texas Intermediate crude December delivery hovered around $41, and Brent blend December delivery held steady near $42.40.

Major Economic Events

GMT Country Event Expectation Previous

12:30

US

 Building Permits (Sep)

1.505

1.476

20:30

US

 API Weekly Crude Oil Stock

-

-5.422

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