Todays’ Market Summary
- Today, the US dollar index is declining for the 3rd day in a row within a 2-week neutral range.
- American stock indices dropped markedly on Monday.
- World oil prices continue to be traded in a narrow range.
- Today, gold quotes continue to advance slightly on the back of the weakening US dollar.
Top daily news
The Republicans are about to approve their limited $500 billion bailout plan today. The Democrats, who had previously offered an aid plan of $2.2 trillion, agreed to postpone talks on the size of the economic aid package to the post-election period.
Forex news
| Currency Pair | Change |
| EUR/USD | +0.32% |
| GBP/USD | +0.18% |
| USD/JPY | +0.14% |
Today, the US dollar index is declining for the 3rd day in a row within a 2-week neutral range. Fed officials said nothing important yesterday. As a rule, the closer the US presidential elections get, the less market activity. Market participants are now awaiting the Democrat Joe Biden and Republican Donald Trump debate on Thursday. This is likely the last chance for incumbent President Donald Trump to win over voters. According to opinion polls, he is 10% behind his rival Joe Biden. Let us remind that the Democratic Party previously advocated increased economic assistance to business and the population. This could have a negative impact on the US dollar and and, vice versa, positive - on stock, gold and commodity prices. Today the US will publish a report on the housing market for September: the outlook is positive. The Australian dollar resumed its drop after Chris Kent, Assistant Governor of the Reserve Bank of Australia, stated that his office was ready to mitigate the monetary policy by cutting the rate to 0 and increasing bond buybacks.
Stock Market news
| Indices | Change |
| S&P 500 | -1.63% |
| DJIA | -1.44% |
| NASDAQ 100 | -1.65% |
American stock indices dropped markedly on Monday. Nancy Pelosi, the Speaker of the US House of Representatives says the discussions on the allocation of financial aid to the US economy after the November 3 elections are quite possible. Democrats have long offered a $2.2 trillion aid package. Meanwhile the Republicans are going to approve their plan of only $500 billion today. It’s hard to tell how far this can realistically go without the Democratic Party's support. However, such a small amount contributed to yesterday’s decline in stock prices. Quarterly reports of companies, such as Procter & Gamble, Netflix, Texas Instruments, Philip Morris, Lockheed Martin, BHP Billiton ADR and others, are important for the entire market and will be released today.
Commodity Market news
| Commodities | Change |
| Brent | -0.38% |
| Light Weight Crude Oil | -0.19% |
World oil prices continue to be traded in a narrow range. OPEC will make the final decision to increase production by 2 million barrels per day only in late November. Now investors are trying to assess the danger of the 2nd wave of coronavirus and how this could reduce global demand for oil. In early autumn, it was about 92% of the pre-pandemic level, but since then the number of coronavirus cases has increased. Today the independent American Petroleum Institute is to publish the US oil reserves changes during the week. Their slight reduction is expected.
Gold Market News
| Metals | Change |
| Gold vs. USD | -0.13% |
Today, gold quotes continue to advance slightly on the back of the weakening US dollar. The psychological mark of $1,900 per ounce of gold again became a support level. Precious metals rose in demand amid growing inflation risks. Fed Deputy Chairman Richard Clarida announced the need to increase stimulus to the American economy. ECB President Christine Lagarde said her office would respond to the coronavirus outbreak and could increase aid to the EU economy.
