Morning Wrap (15.10.2020)

  • US indices declined yesterday. S&P 500 dropped 0.66%, Nasdaq declined 0.8% and Dow Jones closed 0.58% lower. Russell 2000 dropped 0.65%

  • Downbeat moods can be spotted during the Asian session. Nikkei trades 0.6% lower, Kospi declines 1% and Nifty drops 0.3%. S&P/ASX 200 gains 0.5%. Indices from China decline

  • DAX futures point to a lower opening of the European session

  • US Treasury Secretary Mnuchin confirmed that getting stimulus bill done ahead of elections will be difficult

  • Angela Merkel said  that Germany will take measures if virus spread does not ease in 10 days

  • Australian dollar plunged following remarks from the RBA Chief. Governor Lower said that it is possible to cut interest rates to as low as 0.1%

  • Fed's Quarles said that costs of negative rates would outweigh benefits. Fed's Kaplan said that keep low rates may encourage people to take excessive risk

  • Nomura, Deutsche Bank and others say that chance of a no-deal Brexit has dropped to around 20-25% after UK announced it will not walk away from talks

  • China accuse United States of undermining peace and stability in the Taiwan Strait

  • Australian employment declined 29.5k in September (exp. -35k) while unemployment rate increased from 6.8 to 6.9%

  • Chinese CPI inflation slowed from 2.4 to 1.7% YoY in September. PPI dropped from -2% to -2.1% YoY

  • AUD and NZD are top laggards among majors while CHF and GBP gain the most. Most EM currencies trade lower against USD

  • Precious metals pull back slightly. Oil trades flat. Industrial metals decline.

A record 381 thousand new coronavirus cases were reported yesterday. Source: worldometers, XTB

Daily summary: European stocks decline for 2nd day, Wall Street mixed
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Morning wrap (27.10.2020)
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