- 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
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:
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
- + 8.96%-Mineral Resources Ltd(MIN.AX)
- + 5.07%-Beach Energy Ltd(BPT.AX)
- + 4.85%-Ramelius Resources Ltd(RMS.AX)
- -5.18%-Perpetual Ltd(PPT.AX)
- -5.04%-Kogan.com Ltd(KGN.AX)
- -4.14%-Nanosonics Ltd(NAN.AX)
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.
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.
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.
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