By Deepta Bolaky
It was another day of red in the global stock markets as certain European countries continue to post record numbers of coronavirus cases and reported more deaths seen since April. European stocks traded lower as tighter restrictions might be looming given the rapid spread of the second wave of outbreak.
Nasdaq eked out some modest gains while the S&P500 and Dow Jones Industrial Average traded mostly in negative territory throughout the day as hopes for a stimulus relief package ahead of the US elections are fading while the virus continues to create havoc in the US.
On the earnings front, the immediate attention is on the tech leaders as those companies were among the main drivers to lead the rebound in the US stock market after March lows.
Microsoft reported its fiscal year 2021 first-quarter earnings yesterday after the bell. Powered by cloud and AI and underpinned by security and compliance, the Company strives in their mission to empower every person and organisation which work remotely during these extraordinary times to minimise disruption across every possible industry and around the world.
Microsoft Cloud Strength Fuels First Quarter Results. As compared to the corresponding period of last fiscal year:
However, despite the better-than-expected earnings report, the software company’s share price is falling in after-trading hours.
In the FX space, major currencies were mixed against the US dollar. The price action stayed driven by the broader sentiment as markets seemed concerned with US election-related uncertainties, COVID-19 daily records in Europe, and Brexit negotiations. Major pairs remain within familiar levels given the indecisiveness and lack of clarity in the markets.
On the economic front, US data came out mixed:
The demand outlook continues to remain the major concern as various types of curfews and social distancing measures are threatening to paralyse activities again. The weekly inventory data released by American Petroleum Institute yesterday also dragged crude oil prices lower as crude oil stock up to 4.55M in October 23 from previous 0.584M. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading at around $38.79 and $41.20 respectively.
The precious metal also remains within familiar levels around the key psychological $1,900 level as traders await for the next catalyst. With no US stimulus in sight, the XAUUSD pair is struggling to advance higher despite the second wave of virus hitting hard certain countries. As of writing, the XAUUSD pair is trading around $1,905.
Source: GO MT4
By Deepta Bolaky
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|Thursday, 29 October 2020
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