U.S. equities ended higher yesterday, with investors focusing on the outcome of the midterm elections as the Republicans are more likely to win a majority. The Dow rose 1.31%, while the blue-chip S&P 500 advanced nearly 1%. Share price of Meta jumped over 6% on a report of job cuts in order to slash expenses.
Across the Atlantic, European shares closed on Monday at a more than seven-week high, led by both travel and technology stocks, with the broad benchmark STOXX 50 ended 0.55% higher. Meanwhile, German chancellor Olaf Scholz secured agreement to allow expats in China having access to BioNTech Covid shot, during his trip to mainland China.
In Asia Pacific, the performance of the regional stock indices is mixed with Japan’s Nikkei leading the gains, as it rose over 1% to hit a near eight-week high today. While HK’s Hang Seng indices remain flat before the mid-day break. Investors still hope that China would eventually relax its strict Covid restrictions even after the local government reaffirmed its firm stance of the zero-COVID policy.
Price of oil dropped slightly on Tuesday on concerns of worsening COVID outbreaks in China, which caused fears of lower fuel demand, with Brent crude price fell to $98.74 a barrel. Mirroring the price of oil, gold price also dipped today, currently trading at $1,669.33 per ounce. On the other hand, natural gas price soared to their highest level since September on prediction of colder than expected winter this year.
Figure 1 (Source: IS Prime) GBPUSD daily: Sterling gained for two days in a row against the greenback, as the U.S. dollar remain weak recently. However, the outlook of cable is bleak due to growing headwinds of the UK economy.
Headliner to Review
- In September 2022, the German industry production was up by 0.6% compared to the previous month, beat estimation of an increase of 0.2%.
- Unemployment rate in Switzerland came out to be 2.1%, in line with the forecasted figure.
Headliner to Watch
- We will see the release of the October Chinese CPI on Wednesday, with the median forecast sees it slowing to 2.4%, a five-month low.
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