Asian Open: Tesla Races its Way to a Record High on Hertz Order

Tesla rallied 13% to a new record high after receiving a record order of 100k Tesla cars by rental company Hertz.

Charts (2)

The S&P500 and Dow Jones closed to new record highs

Asian Futures:

  • Australia's ASX 200 futures are up 14 points (0.19%), the cash market is currently estimated to open at 7,455.00
  • Japan's Nikkei 225 futures are up 180 points (0.63%), the cash market is currently estimated to open at 28,780.41
  • Hong Kong's Hang Seng futures are up 13 points (0.05%), the cash market is currently estimated to open at 26,145.03
  • China's A50 Index futures are down -27 points (-0.17%), the cash market is currently estimated to open at 16,141.18

 

UK and Europe:

  • UK's FTSE 100 index rose 18.27 points (0.25%) to close at 7,222.82
  • Europe'sEuro STOXX 50 index fell -0.5 points (-0.01%) to close at 4,188.31
  • Germany's DAX index rose 56.25 points (0.36%) to close at 15,599.23
  • France's CAC 40 index fell -20.82 points (-0.31%) to close at 6,712.87

 

Monday US Close:

  • The Dow Jones Industrial rose 64.13 points (0.18%) to close at 35,741.15
  • The S&P 500 index rose 21.58 points (0.48%) to close at 4,566.48
  • The Nasdaq 100 index rose 159.129 points (1.04%) to close at 15,514.19

 

Indices:

Apple’s new privacy rules, which prevent digital advertisers from using its advert services, took a bite out of Facebook’s (FB) revenue in Q3. Advert sales for Facebook rose $29.01 billion, below the $29.57 estimated. They also warned that Q4 revenue could also be lower.

Tesla (TSLA) rallied 13% to a record high on new that car rental company Hertz had placed an order for 100k Tesla cars. It’s the largest order for the cars on record. Shares were already up around 7% when news broke their Model 3 was the first EV to top new cars sales in Europe, and the block order by Hertz consists primarily of that very model according to their Interim CEO. However, turnaround times may be hard to predict considering the auto giant is grappling with supply chain disruptions and a growing backlog of unfulfilled.

Read Matt Weller’s full report.

 

The S&P 500 and Dow Jones closed to new highs ahead of the Facebook announcement, and in anticipation that earnings (overall) will continue to beat expectations overall this week. The Nasdaq was the stronger performer, rising 1% although it trades around -1.2% from its record high.

China’s NRDC (National Development and Reform Commission) has summoned a group of large property developers to a meeting today. As the majority of them are dollar bond issuers it is presumably related to the Evergrande scenario, so all eyes will be on headlines surrounding the meeting to see whether it is a step towards containing any further fallout (a potential risk-on scenario if so).

 

ASX 200 Market Internals:

Beach Energy has outperformed the ASX 200 over the past 30 days

ASX 200: 7441 (0.34%), 25 October 2021

  • Energy (2.64%) was the strongest sector and Information Technology (-0.68%) was the weakest
  • 9 out of the 11 sectors closed higher
  • 5 out of the 11 sectors outperformed the index
  • 92 (46.00%) stocks advanced, 97 (48.50%) stocks declined
  • 69.5% of stocks closed above their 200-day average
  • 55.5% of stocks closed above their 50-day average
  • 68.5% of stocks closed above their 20-day average

 

Outperformers:

  • + 8.96%-Mineral Resources Ltd(MIN.AX)
  • + 5.07%-Beach Energy Ltd(BPT.AX)
  • + 4.85%-Ramelius Resources Ltd(RMS.AX)

 

Underperformers:

  • -5.18%-Perpetual Ltd(PPT.AX)
  • -5.04%-Kogan.com Ltd(KGN.AX)
  • -4.14%-Nanosonics Ltd(NAN.AX)

 

Forex:

AUD and NZD were the strongest major currencies overnight

Any expectations for EUR/USD to break above 1.1670 were short lived as the German IFO report came in lower than expected. Business morale hit a 6-month low as supply chain bottlenecks and a spike in energy prices continued to weigh on sentiment.

DXY formed a bullish outside day around 93.50 support

The US dollar index (DXY) continues to hold above 93.50 support and yesterday’s bullish outside day formed at a cluster of support levels to further suggest a swing low may be in place. The said zone includes the monthly pivot point, March high and 50-day eMA and its recent pullback remains within a bullish channel. We’re not sure if this will simply be a minor corrective bounce or a more significant low, but it is worth remembering that traders remain firmly net-long the US dollar before we go all out bearish on a market with such a bullish structure overall.

AUD/USD held above 0.7450 support and bounced its way along its bullish trendline in what appears to be more of a technical play over anything else. AUD/NZD is also forming a base above the 1.0400, so perhaps the relative strength between the two commodity currencies is turning over the near-term.

South Korea release advanced Q3 GDP at 10:00, and it is a bellwether economy for global growth as well as the Asian region. A Reuters poll suggests it will cool slightly to 0.6% q/q compared with 0.8% in Q2, and down to 4.2% y/y compared with 6% previously.

 

Commodities:

Natural gas is back in the headlines after it rallied nearly 13% to a 3-week high overnight. Exports of LNP are expected to rise as they trade at around 16th the price of global gas prices and we’re heading into a cooler-than-average winter.

WTI prices failed to hold onto earlier gains when it temporarily broke above $85 for the first time in 7 years. The day closed with a bearish pinbar with an above-average volume camera.

 

Up Next (Times in AEDT)

 South Korean growth is scheduled for 10L00 AEDT and is a bellwether for Asian and global growth

 

How to trade with FOREX.com

Follow these easy steps to start trading with FOREX.com today:

  1. Open a Forex.com account, or log in if you’re already a customer.
  2. Search for the pair you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.