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US Market Outlook 22 Oct 2018

Posted by Tim Sholl on 23-Oct-2018 00:31:58

A big bounce in Chinese stock indices by 4% today after the officials discussed tax cuts for investors. This has seen a jump in other Asian markets , a move higher in European equities , and a push higher in US stock index futures. More than 100 US companies will be releasing quarterly earnings with expectations for strong growth. 

The US Dollar remains firm with markets wary of problems in Italy may hurt the EUR , and wary of a Brexit deal being done .

US 10 yr bond yields are at 3.18% , within the recent range of 3.10-3.25% , with some analysts now calling for only 1 more interest rate rise from the Fed before a pause on the basis that some sectors of the economy are now showing signs of stress , such as housing.

Crude oil  prices have been weak since the start of the month as large US stockpiles cap the price , even with the uncertainty caused by the death of a journalist in the Saudi embassy in Turkey and potential Iranian sanctions that would reduce global production by 7%.

Latest prices:

Dow 25506 up 70 / S&P500 2773 up 7 /, Nasdaq 7143 up 38.

EUR 1.1478 down 36 / GBP 1.2966 down 100 / JPY 112.78 weaker by 25 / DXY 95.69 up 25.

WTI Crude at 68.85 down 25 / Spot Gold 1220.60 down 5.00.

Daily Chart - Cotton futures - CTc1 - The jump higher in trading today confirms the current up trend after the bounce in Chinese equity markets improved sentiment.

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Topics: Trading, Market News, US Market Outlook