Strong start to earnings season 14/10/2024

HOT stories for today
10/14/2024.

Markets & today's action:

• European stocks are set for a mixed start on Monday, with regional markets showing little direction after a volatile week. Major indexes ended higher on Friday as investors digested UK growth data and anticipated a potential fiscal stimulus announcement from China over the weekend.
• Asia-Pacific markets saw mixed performance on Monday, with Chinese stocks remaining volatile as investors reacted to the weekend's announcement and its potential economic impact. China's Finance Minister, Lan Fo'an, hinted at plans for increased debt issuance during a Saturday press briefing, citing "rather large" room to expand the deficit in efforts to boost the economy.
• Stock futures remained mostly unchanged in overnight trading on Sunday as investors awaited key corporate earnings reports to see if they could push the market to new highs. Dow Jones Industrial Average futures hovered near the flatline, while S&P 500 futures were flat, and Nasdaq-100 futures dipped 0.1%. Although the bond market is closed for Columbus Day, the stock market will be open as usual. On the data front, Thursday will see the release of September retail sales and industrial production figures, followed by September housing starts and building permits on Friday. These reports could provide valuable insights into the state of the economy. 

Watchlist for today: TSLA, JPM, UBER, BA, MSFT, NFLX

Bitcoin

• Bitcoin (BTC) surged to multi-day highs on Oct. 12, as the market mirrored last weekend's uncertain upward momentum. Analysts are now eyeing potential hurdles below $65K, but a key metric suggests Bitcoin could be "going to rip" higher. The rising stablecoin market cap is also fueling optimism for a continued Bitcoin bull run.
• The monthly and weekly open levels at $62,855 and $63,325, respectively, mark the current spot price as a crucial battleground for Bitcoin. Analyzing exchange order book liquidity, trading resource Material Indicators identified two additional upside targets for BTC, both just below $65,000, indicating key levels to watch for in the near term.
  Watchlist: Bitcoin: 58,947-64,610, Ethereum: 2320-2550, Solana: 133.50 -152.70

Forex Market

• The EUR/USD pair continues its slide, dipping towards 1.0920 in early Monday trading. Heightened geopolitical tensions in the Middle East, coupled with rising friction between China and Taiwan, have fueled risk aversion, putting additional selling pressure on the Euro—a currency often seen as more vulnerable in such uncertain times.
• The GBP/USD pair hovers with modest losses near 1.3060 in early European trading on Monday. Safe-haven demand, driven by mounting geopolitical risks, strengthens the US Dollar, weighing down the pair. Investors are now turning their attention to the upcoming UK employment data, set to be released on Tuesday, for further market direction.
  Whatchlits: EUR/USD: 1.0947-1.1.1000, USD/JPY: 147-149.50

Basic Materials

• Gold (XAU/USD) is back in the red early Monday after a strong rebound late last week. The US Dollar continues to strengthen, gaining from a negative shift in risk sentiment, partly fueled by concerns over China's economic outlook and light trading volumes. Keep an eye on this dynamic as the week unfolds.
   
• Crude oil prices began the week on a downward trend following economic updates from China that were perceived as bearish for oil demand. The key data was September's inflation report, which revealed a modest 0.4% increase in consumer prices, falling short of the anticipated 0.6% forecast shared with Reuters. This was also the slowest price rise in three months, according to the report.While lower consumer prices typically signal stronger consumption and are considered bullish for oil, the market's interpretation this time has shifted. Instead, weaker price growth is being viewed as a sign of softening demand, with concerns that the trend could deepen as inflation continues to cool.
  Watchlist: GOLD 2600-2685, US Oil: 71.40-77.60

The TEFS Analyst team wishes you a successful day!