US futures
Dow futures 0.17%, S&P futures 0.17% & Nasdaq futures 0.29%
In Europe
FTSE 0.15% & DAX 0.13%
- US stocks are modestly higher & Gold hits another ATH
- The US government shutdown continues for a 7th day
- Fed speakers are in focus
- Oil steadies ahead of API oil inventories
Stocks reach record highs
U.S. Stocks are heading for a modestly higher open to fresh record levels as the U.S. government shutdown enters its seventh day with few signs of progress and as traders await cues from Federal Reserve officials.
Investors continue pushing northwoods despite concerns about overstretched valuations and reduced certainty due to the lack of data amid the ongoing federal government shutdown.
There's no data scheduled for release today; instead, attention will be focused on Federal Reserve officials speaking later today, followed by the release of the FOMC minutes tomorrow. These could provide more direction on the Feds' next move.
Vice Chair Michelle Bowman, Atlanta Fed President Raphael Bostic, Fed Governor Stephen Miran, and Minneapolis Fed President Neel Kashkari are all scheduled to speak.
The market is pricing a 25 basis point in October after a string of weak labour market reports.
Fed rate cut optimism, as well as AI optimism and deal-making, keep stocks well supported.
Corporate news
Gold miners are in focus as Gold prices rise to fresh record highs, less than $50 away from $4000. Gold is supported by the debasement trade away from fiat currency, and as China continues to buy for an 11th straight month.
Tesla is under the spotlight as the EV maker is set to reveal a more affordable Y-Sport utility vehicle.
AMD is rising, extending yesterday’s rally after announcing that it will supply chips to OpenAI in exchange for a 10% stake in the maker of ChatGPT. Jefferies upgraded its rating of the chipmaker.
Nasdaq 100 forecast – technical analysis
The Nasdaq 100 trades in a rising channel, reaching a record high of 25,060. The RSI has tipped into overbought territory, so buyers should be cautious of chasing gains at these levels. There could be some consolidation before further gains. With blue skies above 25,500 is the next logical level ahead of 26k. Minor support is at 24,500, the 20 SMA, and 23,960, the August high.
FX markets – USD rises, EUR/USD falls
The USD is rising, supported by weakness in the euro and the yen. The US economic calendar is light due to the ongoing shutdown in Washington.
EUR/USD is falling further as the French political crisis continues following the resignation of French Prime Minister Sebastien Lecornu yesterday. Macron has tasked Lecornu with the final negotiation; however, opponents are calling for a snap election.
The GBP/USD is falling against the stronger U.S. dollar, and after data showed that UK house prices fell 0.3% in September, marking the first decline since May. The data suggests nerves could be entering the market ahead of next month's budget.
Oil steadies ahead of API data
Oil prices are holding steady after solid gains on Monday, following a smaller-than-expected production hike by OPEC over the weekend. However, oversupply expectations have limited the upside.
OPEC+ increased outputs by 137,000 barrels per day, significantly less than expected, sending oil prices 1% higher in the previous session.
However, those gins appear to be limited amid expectations of supply surplus in the fourth quarter and early next year.
US API oil inventory data will be released later today and should provide some clues. The demand picture
