North American News
Major indices close higher on the day for the 2nd consecutive day
- Gains of 0.9% to 1.14% for the major indices
The major US stock indices are closing higher for the 2nd consecutive day. The final numbers are showing:
- Dow industrial average up 337.98 points or 1.12% at 30523.79
- S&P index up 42.03 points or 1.14% at 3719.97
- NASDAQ index up 96.61 points or 0.90% at 10772.41
- Russell 2000 up 20.20 points or 1.16% at 1755.95
Fed’s Bostic: Cannot solve all the problems causing inflation
- Atlanta Fed Pres. Andrew Bostic
- Fed cannot solve all the problems causing current inflation
- A lot of shuffle and churn in economy now, must work through that to get to a new equilibrium
Commodities
Gold bears hover over the edge of the abyss, preparing to take the leap
- Gold prices remain under pressure below a key dominant bearish trendline.
- The US dollar could find support from a resurgence in US yields.
The spot gold price is trading at $1,650.57 and flat on the day at the time of writing. The yellow metal has been trading within a $1,645 / $1,660.93 range on the day so far while the US dollar remains pressured towards the middle of the week which hit its lowest level since Oct. 6, making bullion cheaper for overseas buyers.
However, as the following technical analysis will show, DXY remains on the front side of a key trendline, although further weakness, from a technical standpoint below last week’s lows, should serve to support the precious metal. US yields, in that regard, remain around 4% in the 10-year yields with a daily bullish structure which should serve to prop up the US dollar. The 2-year yield is pulling back slightly from the daily highs of 4.53%. This is weighing on the greenback this week and supporting gold as rising interest rates dim gold’s appeal as they increase the opportunity cost of holding the non-yielding asset.
Slightly further afield, gold has also been subject to the UK’s money markets and the shenanigans in UK politics this month. The UK government’s decision to u-turn on vast unfunded fiscal stimulus seemed to boost investors’ confidence and some stability is being priced back into the gilt market. The yield on Britain’s 10-year gilt stabilized around 3.9%, but it remains well below the 14-year high of 4.6% reached on October 12th.
The good news, however, came with the New Chancellor Jeremy Hunt saying on Monday that he was reversing almost all tax measures announced in the mini-budget, including cutting the basic rate of income tax from 20% to 19% from April next year. Traders also got the news that
Meanwhile, traders also took note of the Bank of England announcing that sales of government bonds are set to go ahead as planned for November 1. This rebutted an article by the Financial Times that warned that another postponement was likely because of the turmoil in the money markets. While this is important news, the main driver for gold remains with the Federal Reserve.
Its all about the Fed
”Inflation’s increasing persistence is a constraint for the Fed, which suggests that a restrictive rates regime may persist for longer than historical precedents. In this context, gold prices are unlikely to rise with a deteriorating growth outlook until the Fed makes progress in the war on inflation,” analysts at TD Securities explained.
”For the time being, TD Securities has found that US wage growth trends are validating near-term household inflation expectations, but appear to have settled at levels that would sustain a CPI inflation rate of 5%-6% going forward, far removed from the 2.5% rate consistent with the Fed’s inflation target. In turn, don’t count on investors to grow their appetite in the yellow metal. Physical demand for bullion has remained elevated, but seasonal considerations suggest that this tailwind could soon fade following India’s festive season.”
WTI crude oil futures are settling at $82.82
- Down -$2.64 or 3.09%
The price of WTI crude oil futures are settling at $82.82. That’s down $2.64 or -3.09% on the day
EU News
European indices close with gains on the day
- German DAX lead the way with a 0.92% gain
The major European indices are closing near low levels for the day, but still higher on the day. The gains were led by the German DAX which rose 0.92%.
A look at the closing levels shows:
- German DAX +0.92%
- France’s CAC +0.44%
- UK’s FTSE 100 +0.24%
- Spain’s Ibex +0.72%
- Italy’s FTSE MIB +0.9%
Other News
Global dairy price index falls negative -4.6% to an average price of $3723
- 2nd decline in a row
- Global dairy prices fall -4.6% to $3723
- Whole whole milk powder prices fell -4.4% to $3421
Goldman Sachs CEO: Global economy continues to face significant headwinds
- But earnings beat expectations
The Goldman Sachs CEO and CFO are speaking now and they say:
- global economy continues to face significant headwinds
- not seeking retail customers on a large-scale anymore
- backlog of deals remain robust
- Outlook will remain unsettled as we head into Q4
- see some signs of credit deterioration in consumer
Cryptocurrency News
Ethereum price in danger of a 15% pullback as ETH supply in loss hits 4-month high
- Ethereum price’s early week rebound stalls at $1,340.
- Justin Bons, the founder of Cyber Capital, reckons that no ETH transaction has been stopped or censored since the Merge.
- A break below the 50-day SMA on the eight-hour could drag ETH price closer to validating a falling triangle breakout.
- Ethereum supply in loss rises to 52 million, hinting at a bullish price move.
Ethereum price seems relatively unchanged on Tuesday after bulls propelled it to $1,340 on Monday. Although the pioneer smart contracts token managed to climb above the 50-day SMA (Simple Moving Average), red, at $1,315, its momentum faded before confirming support above $1,340.
Ethereum price is in a dilemma because trading below the 50-day SMA may validate a falling triangle pattern. Conversely, the second-largest cryptocurrency could extend its early week bullish breakout to tag $1,521 and possibly close the gap to $2,000.
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