ASML spooks the market 16/10/2024

Hot stories for today
16.10.2024.

Markets & today's action:

• Asian chip stocks dropped following ASML's disappointing sales forecast and concerns over a potential U.S. export cap, adding to worries in the semiconductor sector. Losses in the semiconductor sector weighed heavily on major Asian indexes. Japan’s Nikkei 225 dropped over 2%, South Korea’s Kospi fell 0.6%, and the Taiwan Weighted Index declined 0.7%.
• Stock futures remained steady Tuesday evening as Wall Street waits to see if equities can rebound to record highs this week. Futures tied to the S&P 500 were flat, Nasdaq 100 futures edged up less than 0.1%, and Dow Jones Industrial Average futures gained just 2 points. On Wednesday, key reports from Morgan Stanley and Abbott Laboratories are set to be released before the market opens.

Bitcoin & Crypto

• Bitcoin (BTC) surged toward $68,000 at the Wall Street open on Oct. 15, with analysts advising traders to focus on previous all-time highs. After overnight consolidation, BTC/USD gained over 2% before stabilizing, approaching the key psychological level not seen since 2021. The next major hurdle is breaking the $69,000 mark. Many analysts expect Bitcoin to continue its upward momentum, especially with the U.S. presidential election on the horizon.
  Watchlist: Bitcoin: 66,867-68,050, Ethereum: 2329-2700, Solana: 144-162.00

Forex

• EUR/USD stabilized after a four-day losing streak, trading near 1.0890 during Wednesday's Asian session. However, the Euro could face renewed downward pressure, as the European Central Bank is expected to announce a 25 basis point rate cut during Thursday's policy meeting. Will the ECB's decision push the Euro even lower?
• Japanese Yen bulls remain cautious as uncertainty surrounds potential Bank of Japan (BoJ) rate hikes. The Yen traded within a narrow range against the U.S. Dollar during Wednesday's Asian session, stalling its recovery from the lowest level since early August reached the previous day. Will the BoJ provide clarity that could reignite bullish momentum for the Yen?
  Whatchlits: EUR/USD: 1.0880-1.1.1000, USD/JPY: 147-150.00

Basic Materials

• U.S. crude futures tumbled more than 4% on Tuesday after Israel reportedly told the U.S. it doesn't plan to target Iran’s oil facilities, easing fears of a major supply disruption in the Middle East. With that relief, is the risk premium fading for now? 
• Adding to the bearish outlook, OPEC slashed its 2024 oil forecast for the third month in a row, and the International Energy Agency predicts demand will slow significantly, growing by just 900,000 barrels per day (bpd) in 2024, down from the 2 million bpd surge seen in the post-pandemic period. China's oil demand is also struggling, with consumption dropping by 500,000 bpd in August. Could the combination of slowing global demand and easing geopolitical tensions push oil prices even lower?
  Watchlist: GOLD 2600-2685, US Oil: 69.80-77.60

The TEFS Analyst team wishes you a successful day!