Asian Daily Market Review
Asian markets opened to pressure on Tuesday morning in
response to overnight losses on Wall Street, rising coronavirus cases in both
the U.S. and Europe, and the inability of U.S. lawmakers to agree on a stimulus
In Australia the S&P/ASX 200 is down 0.4% heading into
the afternoon session in Sydney. The big four banks are contributing to the
weakness, with Westpac down 0.7%, Commonwealth Bank falling 0.5%, NAB losing
0.4%, and ANZ trading 0.1% lower. Miners are also falling despite the decent
Chinese growth data, with BHP losing 1.3% and Rio Tinto trading down 0.9%.
In Japan the Nikkei has a loss of 0.2% even thought the Yen
is weaker versus the U.S. dollar for a second consecutive session. Shares of
Softbank Group are losing 0.8% today, while Sony is trading 2.3% higher on the
Yen weakness, but Toyota is down 0.3%. Among major exporters Panasonic is 0.3%
lower, while Canon is advancing 0.6%.
In mainland China the Shanghai Composite has opened 0.5%
lower, while the smaller cap Shenzhen Composite has a smaller 0.2% loss. Over
in Hong Kong the Hang Seng is following the mainland lower with a loss of 0.3%.
Shares of Tencent and Alibaba are both trading 0.1% higher.
In South Korea the Kospi has a loss of 0.3%, with SK Hynix
losing 1.6% as investors react to news of Intel selling its storage unit to the
Korean chip maker for $9 billion. In Taiwan the Taiex is trading 0.2% lower.
Southeast Asian markets are also lower today, with Singapore’s
Straits Times falling 0.6% and the KLCI in Malaysia 0.2% lower.
Is Netflix Ready To Smash Wall Street Expectations?
Streaming video giant Netflix will release its third quarter
earnings results Tuesday after U.S. markets close, and despite the company
providing subdued guidance analysts have been increasingly bullish over the
prospective results for the past three months.
After reporting 25.9 million new subscribers in the first
half of 2020 Netflix warned in July that new subscriber growth would slow
significantly in the third quarter. The company forecast new subscriber growth
of just 2.6 million in the third quarter, sending shares skidding at the time.
Since then the stock has recovered, but twice faced
resistance at the $550 level that was too strong to overcome. Ahead of the
earnings report shares were trading around $535, which means a strong earnings
report could finally see Netflix overcome the $550 level and switch it from
resistance to support.
If that happens, which several analysts seem to believe it
will as they have increased price targets on the stock to $670, or roughly 25%
above Monday’s closing level, Netflix could rally strongly into the fourth
Over the past week there have been several analysts
upgrading Netflix shares and hiking their price targets, which indicates that
Wall Street believes Netflix will significantly outperform its modest guidance.
Indications that the third quarter has actually been pretty
good are the price hike in the Canadian market, and the discontinuation of the
30-day free trial in the U.S. If Netflix was struggling with subscriber growth
they wouldn’t likely make either move. That indicates subscriber growth is far
better than the company forecast, which could mean strong gains coming for the
U.S. Daily Market Review
The main U.S. indexes dropped today as the giant of Facebook and Amazon registered some losses.At 12:40 p.m. ET, the Dow Jones Industrial Average fell 100.05 points, or 0.35%, at 28,506.26.The S&P-500 tumbled 15.01 points, or 0.43%, at 3,468.80. The Nasdaq Composite retreated around 36.10 points, or 0.31%, at 11,635.45.First lady Melania Trump will join President Donald Trump at the Pennsylvania, rally taking place tomorrow evening, according to a White House official. This will become the first lady's first in-person appearance at a campaign event, outside of August's Republican National Convention speech at the White House.Builder sentiment marked a record high for the second month in a row, advancing to 85 in October on the NAHB/Wells Fargo Housing Market Index. The yield on the benchmark 10-year Treasury note gained 4 basis points to 0.781%, surging to the highest level since Oct. 9. Moreover, the yield on the 30-year Treasury bond partly inclined around 1.546%. The long-duration yield earlier jumped 4 basis points to 1.574%.
European Daily Market Review
European markets are into a mixed pattern. The French CAC-40 inclined 2.03%, while the FTSE 100 is tumbled 0.25% and the German DAX slipped 0.15%.The pan-European Stoxx 600 entered once again into a static mode after having been up by as much as 0.8% during the morning. Italy’s prime minister reported additional measures to fight against the second wave of infections Sunday, including restricted opening times for restaurants and limitations on public gatherings. The French government stated that would add to its aid package measures to bail out the small businesses affected the coronavirus pandemic with a 20 billion euro ($23.5 billion) scheme of quasi-equity loans partially backed by the state.Saab lost a whole 11% after the Swedish auto producer announced very low set of third-quarter results.
Crude Oil Prices Drop
Oil prices slipped this morning after reports that China's third-quarter economic growth is not as big as previously predicted. In addition, refiners in China slowed their processing rates last month.Moreover, there are fears of rising coronavirus cases which are very likely to affect oil consumption and eventually prices as well.Now, oil trades at $40.800, which is a very minor incline of $0.060 or 0.15% from the previous close of 40.740.The daily trading range is from $40.580 to 41.113, while the trading volume is 6.16K.Brent rose 0.2% last week while WTI added 0.7%, after crude and oil product inventories in the United States tumbled.Energy firms in the U.S., last week advanced the most oil and natural gas rigs since January as producers return to the trend with crude prices holding around $40 a barrel over the last quarter.
Asian Daily Market Review
Asian markets opened to gains Monday as investor sentiment improved
on hopes for a U.S. stimulus package being passed before the Presidential
election in November. There is also optimism that there will be a vaccine
before the end of the year, although it is being tempered by the rising number
of global coronavirus cases.
In Japan the Nikkei is trading 1.2% higher on optimism over
weekend developments. Shares of Softbank Group are trading 2.6% higher, Sony is
2.6% higher as well, and Toyota is trading up by 1.6%. Among the exporters
Panasonic is 1.1% higher, but Canon is flat as the Yen has begin to strengthen
versus the U.S. dollar today.
In mainland China the Shanghai Composite is trading 0.6%
higher, and the smaller cap Shenzhen Composite is 0.5% higher. The gains are
coming after China said its economy grew by 4.9% in the third quarter, which
was slightly lower than expectations, but also good enough for investors to
continue buying equities. Meanwhile in Hong Kong the Hang Seng is trading up by
1.1% and outpacing the gains from the mainland.
In Australia the S&P/ASX 200 has advanced 1.1% as Sydney
heads into the afternoon. The big four banks are helping the market with gains
in the range of 1.2% to 1.4%, while major miners are rising 0.5% to 1% on the
growth news out of China.
In South Korea the Kospi is 0.8% higher, while Taiwan’s
Taiex has added 1%.
Southeast Asian markets are also broadly higher, with the
KLCI in Malaysia up 0.6%, and both Indonesia’s Jakarta Composite and Singapore’s
Straits Times 0.5% higher.
Dow Snaps Three Session Losing Streak On Strong Retail Sales
U.S. equity indices snapped a three session losing streak Friday,
propelled higher by a stronger-than-expected reading on September U.S. retail
sales. At the close the S&P 500 was up 0.01%, while the Dow Industrials
added 0.39%, however the Nasdaq dipped 0.36% lower.
The rally came following data showing U.S. retail sales
increasing 1.9% in September, which was ahead of expectations for a 0.7%
increase. Excluding auto sales still saw a 1.5% increase, while easily topped
The strength in the retail sales reading shows that the U.S.
economy is rebounding, and there are even pockets of strength. For those who
have employment the economy is not in such a bad place at all, but analysts
wonder if this can continue if initial unemployment claims also remain at
excessively high levels.
The data was a relief for markets, which have traded lower
for three consecutive sessions in response to growing numbers of coronavirus
cases in Europe and the ongoing lack of a stimulus package in the U.S.
In the U.S. lawmakers continue negotiating on the stimulus
package, but have also sent mixed messages. President Trump has agreed to
consider a larger stimulus package, but at the same time Senate majority leader
Mitch McConnell has said the Senate will refuse to take up any massive stimulus
Meanwhile in Europe France has imposed new lockdown
restrictions in Paris and other cities after declaring a public health state of
emergency earlier in the week, and in the U.K. the government announced tougher
coronavirus restrictions for London. Germany also has new rules for limiting
the spread of the virus.
U.S. Daily Market Review
Wall Street entered into recovery today after three straight days of losses.This comes after a higher update from Pfizer on development of its COVID-19 vaccine and on data that showed greater-than-forecasted retail sales growth last month.At 12:48 p.m. ET the Dow Jones Industrial Average secured 209.97 points, or 0.74%, to 28,704.17.Consumers spending advanced at a much faster trend than estimates in September, with retail sales rising 1.9% in a sign that the U.S. economy’s biggest driver remains healthy.Clothing and accessories led the the rising patter, rising by 11%, while sporting goods, music and books soared 5.7%. The yield on the benchmark 10-year Treasury note added 0.733%. The 30-year rate also partly inclined to 1.524%. U.S. retail sales jumped last month, pointing out a stronger quarter of economic activity. Retail sales advanced 1.9% last month as consumers bought motor vehicles and clothing.The Trump administration have reported that the recovery has been shaped like the letter V. This is implying in a quick return to pre-pandemic levels after a self-induced recession resulted from mandated business closures.
European Daily Market Review
European markets are into a mixed path. In London, FTSE-100 added 1.21% while the DAX secured 0.59%. The French CAC-40 dropped 2.11%.The pan-European Stoxx-600 surged 0.8% in early trade, with autos jumping 2.3% to lead the rising pattern.The European Union has asked London to cede ground in negotiations over a new trading relationship by the end of the year.The GBP appreciated partly but is into a falling pattern on weekly basis.This comes as the county is expected to report whether it would continue with Brexit negotiations after the European Union leaders’ summit left the UK disappointed.Germany’s 10-year bond yield was set for its largest decline since August, while the broader market stabilised on Friday after measures to curb the growing number of coronavirus infections across the continent.An increasing number of European countries imposed new measures to curb a second wave of the coronavirus this week. That pushed safe-haven German bond yields to their bottom mark since mid-March.
Gold Prices Decline
Gold prices dropped this morning, as the number of COVID-19 cases largely jumped in Europe Washington is indicating in that the Congress pass the COVID-19 package.Now, gold trades at $1906.16, which is another fall of $2.02 or 0.11% from the previous close of 1908.18. The daily trading range is from $1902.72 to 1910.56, while the trading volume is 96.005K.Several European countries, such as the U.K. and France, are introducing new restrictions to curb the spread of the virus from Friday. Yesterday, President Donald Trump implied in that the $1.8 trillion package could soon be approved.However, this proposal was rejected by Senate Majority Leader Mitch McConnell, who feared that Republicans would not agree to the price increase. Most likely this plan will not take place until the Nov. 3 presidential elections.
Asian Daily Market Review
Asian markets are mixed after a rough start Friday morning
as the U.S. dollar is strengthening on haven demand with investors worried that
a resurgence of coronavirus lockdown measures across Europe will wreak havoc on
the world economy. There are also continued worries regarding U.S. stimulus,
which looks as if it could be delayed until after the U.S. Presidential
Australia’s S&P/ASX 200 is trading down by 0.1% in mid-afternoon
trading in Sydney, with the big four banks helping keep the index from deeper
losses. Shares of ANZ are up 0.3%, NAB has a 0.4% gain, Commonwealth Bank is
trading 0.4% higher as well, while Westpac is edging lower by 0.1%. Major
miners are a drag on the index however, with both BHP and Rio Tinto trading
In Japan the Nikkei is flat and inching up by less than 0.1%
as the U.S. dollar strength is not applying to the Yen. That Yen strength is
working against Japan’s exporters. Shares of Softbank Group are 0.5% higher
today, but Sony has dropped 2.1% in early trade, and Toyota has a 0.6% loss.
In mainland China the Shanghai Composite is up 0.4% while
the smaller cap Shenzhen Composite has a 0.2% advance. Meanwhile in Hong Kong
the Hang Seng is trading 0.5% higher.
In South Korea the Kospi is leading losses for the region as
it’s dropped 0.3%, and in Taiwan the Taiex is trading up 0.2%.
Southeast Asian markets are broadly higher with Singapore’s
Straits Times rising 0.6%, and Malaysia’s KLCI up by 0.3%, although the Jakarta
Composite in Indonesia is flat at the open.
Dow Industrials Fall For Third Consecutive Session
U.S. markets managed to climb off the worst levels of the
day Thursday, but the Dow Industrials still posted a third consecutive loss as
it edged lower by less than 0.1% at the close of trading. The technology sector
was a laggard, while banks rallied after a solid week of earnings from most of
the largest U.S. banks.
Investor sentiment took a hit early in the session after
jobless claims rose by 53,000 to the highest level in seven weeks, causing some
doubts about the recovery in the U.S. labor market. In addition, concerns over
the lack of a stimulus pack continue to weigh as it appears there is little
hope for stimulus until after the elections are over.
Investor attention also finally turned to the rising number
of COVID-19 cases across Europe. The spike in cases has largely been shrugged
off over the past few weeks, but on Thursday France imposed new lockdown
restrictions in Paris and other cities, while the U.K. did the same in London.
The new lockdowns make it almost impossible for investors to continue ignoring
the worsening situation.
Earnings season kicked off this week as well, and so far it’s
been largely a positive for markets. Morgan Stanley, JPMorgan Chase, Citigroup,
and Bank of America all posted better than expected results this week, as did
Walgreens Boots Alliance. That gave the third worst performing Dow Component a
4.8% gain on Thursday following its better than expected earnings.
The technology sector underperformed as Goldman Sachs cut
the sector to neutral, saying growth could be capped by policy shifts and
slowing economic growth.
U.S. Daily Market Review
U.S. stocks are into a lower side as an unexpected advance in weekly jobless claims was marked amid the fears of a stalling economic recovery.President Donald Trump reported that he has told Treasury Secretary Steven Mnuchin, who has been negotiating with House Speaker Nancy Pelosi on another coronavirus aid package, that the White House's offer could go above its previous level of $1.8 trillion.Morgan Stanley gained 0.6% after after announcing higher third-quarter profit forecasts.Jobless claims are still hurting the unemployment line in large numbers last week, with 898,000 new claims filed. Thus, the total for the week ended Oct. 10 was the peak mark since Aug. 22 and another sign that the labor market continues to have hard time to recover.Shares of Shift Technologies Inc lost 6.7% in their Nasdaq debut on Thursday. This happens as the online used-car seller went public through a reverse-merger deal.
European Daily Market Review
European markets are into a lower side today with shares in Germany dropping the most ground.The DAX slipped 3.09% while London's FTSE 100 dropped 2.37% and France's CAC-40 fell 0.12%. The pan-European Stoxx 600 tumbled around 2.2% in afternoon deals, with autos and oil shares falling the most around 3%.The coming new wave of rising Coronavirus cases is creating in a negative pressure on the markets.In reality, Paris declared a public health state of emergency yesterday after the country registered hospitalizations from Covid-19 rally above the 9,100, for the first time since June 25.Roche announced today its full-year 2020 outlook but marked some drops slightly after missing sales expectations for the third quarter.The German 10-year government bond sunk to its lowest mark of the last 7 months amid concerns the re-acceleration of COVID-19 infections in the region. In fact, the 10-year German bond yield slipped 5.4 basis points to negative 0.631%.
The USD Into A Surge
The USD rallied during the early European trading hours today on safe haven inflows as coronavirus cases are further on a rally. Moreover, the USD Index partly inclined of 0.1% at 93.483. Presently, the USD versus the Euro trades at 0.85130000 EUR. The daily trading range is from 0.85130000 to 0.85130000, while the trading volume is 12.Meanwhile, AUD/USD slipped 0.7% to a one-week low of 0.7110, weighed by Australia’s central bank chief hinting at a possible rate reduction or bond buying.The French government on Wednesday declared a public health state of emergency as massive jump of coronavirus cases are taking place.France is massive affected by a second wave of the Covid-19 virus, with new cases reaching a whole 100,000 daily in Europe.Moreover, the E.U. leaders are will meet in Brussels later today to discuss progress in the Brexit discussions.