English (India)
20
Oct

IBM, Tesla Earnings, EU and Canada CPI, EIA Oil Data

calendar 20/10/2021 - 07:32 UTC

With the dollar clearly trading lighter against other major and EM currencies even the Turkish lira (TRY) managed for once to consolidate and trade lower in the USD/TRY pair on Tuesday. By Wednesday morning however most of that market move vanished and the pair again traded close to its previous all-time high. One of the few dollar pairs trading in favour of the greenback was t he USD/JPY pair that day with the weak yen leading the pair to reach a new high since November 2017.

While silver traded relatively unchanged, silver prices moved up by more than two per cent on Tuesday, while palladium was up by more than 4.6 per cent and thus quickly recovering even from the steep losses sustained at the start of the week.

Sentiment among the major equity indices was quite mixed with the Germany 40 index trading almost unchanged, while at the same time some other European indices like the Spain 35 and the Netherlands 25 moved clearly higher by 0.85% and 0.84% respectively. U.S. and Asian markets were looking mostly positive with the China A50 index gaining more than 1.3% on Tuesday, while the Japan 225 (yen) index was up by around one per cent.

On Wednesday consumer price index (CPI) data will be published for Canada and the EU, while in the U.S. the weekly mortgage market statistics will be released by the Mortgage Bankers’ Association (MBA).

EUR/USD

The EUR/USD pair was up for the third day in a row on Tuesday mainly due to the weakness of the greenback, as the euro itself was performing quite poorly over that trading session against other majors, trading down by 0.66% and 0.7% respectively in the EUR/AUD and EUR/NZD pairs and also suffering some losses in the EUR/GBP pair.

The German producer price index (PPI) in September showed once again that rates of inflation especially for producers are continuing to grow at a worrying pace, rising by 2.3% in September alone on a monthly basis.

On Wednesday the EU CPI numbers for September will be again published. It is not expected that the rate of inflation would change significantly from the 3.4% indicated in the preliminary release at the beginning of the month.

EUR/USD

Bitcoin

Bitcoin was finally able to surpass the resistance around the $63k mark and traded at times just marginally below the previous all-time high from April. As the overall sentiment in the crypto market remained rather mixed, the BTC dominance moved up above the 45%-level and the Bitcoin/Ethereum pair reached a new record since late July.

On Tuesday the first Bitcoin ETF in the U.S. traded for the first time on the NYSE and closed that day up by more than four per cent thanks to the positive market move of Bitcoin. Analysts quoted by CNBC were positively surprised by the high volume of the new ProShares Bitcoin Strategy ETF (BITO) on the first day, which surpassed that of many popular ETFs that day.

Bitcoin

WTI Oil

Oil prices have the moving sideways over the past days with the recovery from Tuesday being quickly undone by the negative market move over the course of the night to Wednesday with the WTI crude oil price falling again below $82 per barrel. Natural gas prices meanwhile stabilised after reaching yet again a new three-weeks low during the trading session on Tuesday.

While the weekly statistical bulletin released by the American Petroleum Institute (API) in the evening hours on Tuesday revealed that crude oil stockpiles were up for the fourth week in a row, this time by almost 3.3 million barrels, oil prices still moved to the upside as at the same time gasoline and distillate inventories were reported significantly lower on a weekly basis by 3.5 and 3.0 million barrels respectively.

By Wednesday the Energy Information Administration (EIA) publishes its weekly data including inventory changes of crude oil, gasoline and distillates.

WTI Oil

US 500

Stock market indices continued to rally for the second day in a row this week with the US 500 index trading for the first time in more than a month above the 4500-level. Tech indices like the US Tech 100 and especially the FANG+ (+1.57%) also continued recovering at a rapid pace.

Chinese stocks listed in the U.S. like Alibaba (+6.06%), iQIYI (+13.30%) and Gaotu Techedu (+11.75%) were among some of the best-performers that day. Cannabis-related equities (Global Cannabis ETF +4.92%) also had quite a good day with Aurora Cannabis (+7.38%), Canopy Growth (+8.25%) and Tilray (+15.70%) clearly beating the market average.

Some volatility was seen in after-hours trading of Netflix, following the release of their quarterly results, but ultimately the stock price appeared to end up only marginally lower compared to the regular closing price on Tuesday. The company managed to outshine expectations on both earnings and global paid net subscriber addition, with the latter reaching 4.4 million in the quarter. The company’s co-CEO Hastings said also that the company is now in “unchartered territory”, as it will have the highest amount of content coming in the coming quarter in its history.

On Wednesday quarterly results from IBM, Verizon, Abbott Laboratories and Tesla can be expected.

US 500

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