News

Stock Futures Trim losses; Dollar Eases, Fed Minutes Eyed

Equities

Major US stock index futures inched higher during the Asian session to recover from yesterday's sharp losses. Stock benchmarks fell fiercely, as Trump announced that he asked his representatives to stop negotiating a new stimulus bill until he wins the presidential elections. The market reacted significantly, as Powell mentioned yesterday that the economy needs more aggressive fiscal and monetary stimulus for a stronger economic recovery. Investors will look forward to any hints in the minutes of the last monetary policy meeting that will be released later on the day. The Dow Jones Industrial Average futures rose to 27914, the S&P500 futures rallied to 3377, and Nasdaq futures raced higher to 11356.

Dollar

The dollar index, which measures the greenback against a basket of major currencies, drifted lower to 93.65, surrendering partial gains earned following Trump's surprise. President Trump tweeted that he instructed his representatives to stop discussing a new stimulus bill with House Speaker Pelosi. Market participants are now shifting their focus to the Fed's monetary policy meeting minutes later today. The EURUSD rallied to $1.1761 after falling to $1.1724, and the GBPUSD moved higher to $1.2928.

Metals

Gold prices edged higher during the Asian session, trimming yesterday's losses. Precious metals fell sharply as Trump announced the stoppage of stimulus talks, but managed to recover in the past hours. The price of a gold ounce rallied to $1897 after touching $1872, the price of a silver ounce recovered to $23.80 after dipping to $22.85, and palladium futures held steady near $2370.

Oil

Oil prices erased losses incurred post Trump's tweet over fiscal stimulus negotiations. Market participants are looking forward to the inventories data from the US Energy Information Administration later today. The West Texas Intermediate crude November delivery rose to $40.33, and Brent blend December delivery rallied to $42.40.

Major Economic Events

GMT Country Event Expectation Previous
12:10 EZ  ECB President Lagarde Speaks   - -
14:30 US  Crude Oil Inventories 1.569 -1.980
18:00 US  FOMC Meeting Minutes  - -
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