Round up of today's market news *

North American News

US Stock Market Close: Gains Ebb as Buyers Retreat Ahead of Election

The US stock market closed with modest gains on Friday, with major indices recovering from earlier highs as investor enthusiasm waned in light of upcoming economic and political events.

Closing Changes:

S&P 500: +0.4%
Nasdaq Composite: +0.8%
Russell 2000: +0.6%
Dow Jones Industrial Average (DJIA): +0.7%

Weekly Performance:

S&P 500: -1.4%
Nasdaq Composite: -1.5%
Russell 2000: Flat
DJIA: -0.2%

Market Overview:

The trading week ended with a sense of resilience, despite prevailing uncertainties surrounding the upcoming US presidential election. Friday’s session saw fluctuations largely influenced by the non-farm payrolls report, which revealed a significantly lower job growth figure of just 12,000, well below the expected 113,000. The US dollar initially dipped sharply, only to recover later in the day.
Wall Street’s modest recovery was driven by dip-buying activity and a positive response to key earnings reports from technology giants, which offset concerns related to Federal Reserve policies and electoral uncertainties.

Key Movers:

Amazon (AMZN) surged 6.2% following strong quarterly earnings, while Intel (INTC) jumped 7.8% on optimistic forecasts.
Exxon Mobil (XOM) and Chevron (CVX) reported better-than-expected revenue and profit figures, reflecting strength in the energy sector.
Apple (AAPL), however, fell 1.2%, as investors reacted to a cautious outlook regarding iPhone demand amid supply chain challenges.

Economic Data & Job Market:

The October jobs report showed the weakest hiring growth since 2020, with a revision indicating a net loss of 112,000 jobs over the previous two months. Despite this, the unemployment rate remained low, suggesting ongoing labor market resilience.
The weak employment data might lead the Federal Reserve to consider rate cuts in upcoming meetings, which would further influence market sentiment.

Treasury Yields & Fed Policy:

After fluctuating due to the jobs report, the 10-year Treasury yield settled at 4.36%, reflecting a nine-basis-point increase for the day. Market expectations now include a quarter-point rate cut at the Fed’s next meeting, with traders anticipating further easing in the months to come.

Sector Performance:

The consumer discretionary sector led the way, propelled by Amazon’s earnings, climbing 2.4%. The information technology sector also performed well, increasing 0.6%.
In contrast, the real estate and utilities sectors struggled, declining 1.1% and 2.3%, respectively, as rising rates took a toll on these rate-sensitive areas.

Currencies:

The US dollar rallied overall, as the Bloomberg Dollar Spot Index rose 0.4%, reflecting positioning ahead of expected Fed actions and election-related safe-haven flows.
The euro dipped 0.4%, while the pound saw a slight uptick of 0.2%.

Commodities:

Crude oil prices rose 0.3%, reaching $69.47 per barrel amid geopolitical tensions, although skepticism about potential supply disruptions remained.
Gold experienced a slight decline of 0.3%, closing at $2,734.44 per ounce as a stronger dollar tempered safe-haven demand.

Cryptocurrencies:

Bitcoin fell 1% to $69,253.43, while Ether decreased by 0.2% to $2,513.58, reflecting ongoing caution among traders as they await further regulatory clarity.

As the market heads into a critical election week, investors remain watchful of economic indicators and political developments that could shape the financial landscape in the near term.

Atlanta Fed GDPNow growth model for Q4 comes in @ 2.3%

Atlanta Fed GDP model for Q4 growth

The Atlanta Fed GDPNow growth estimate for the fourth quarter fell to 2.3% from 2.7% in the initial release yesterday. Of note is that the third quarter estimate from the Atlanta Fed’s model was spot on at 2.8%.

In their own words:

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the fourth quarter of 2024 is 2.3 percent on November 1, down from 2.7 percent on October 31. After this morning’s construction spending release from the US Census Bureau, the employment report from the Bureau of Labor Statistics, and the Manufacturing ISM Report On Business from the Institute for Supply Management, the nowcasts of fourth-quarter real personal consumption expenditures growth and fourth-quarter real gross private domestic investment growth decreased from 2.9 percent and 1.1 percent, respectively, to 2.6 percent and 0.4 percent.

US ISM October manufacturing PMI 46.5 vs 47.6 expected

US ISM manufacturing for October 2024

Prices paid 54.8 vs 48.5 expected (48.3 prior) — highest since May
Employment 44.4 vs 43.9 prior
New orders 47.1 vs 46.1 prior
Production 46.2 vs 49.8 prior
Supplier deliveries 52.0 vs 52.2 prior
Inventories 42.6 vs 43.9 prior
Backlog of orders 42.3 vs 44.1 prior
New export orders 45.5 vs 45.3 prior
Imports 48.3 vs 48.3 prior

US S&P Global final October manufacturing PMI 48.5 vs 47.8 prelim

Manufacturing data from S&P Global

Prelim was 47.8
Prior was 47.3
Fourth straight month below the 50.0 expansion mark
Election uncertainty weighing on new orders, the report says
Hurricane disruptions hitting supply chains
Input cost inflation at lowest since November 2023

Comments from S&P Global’s Chris Williamson highlight particular weakness in investment goods orders. He notes potential upside after election uncertainty clears, but warns of ongoing headwinds from international conflicts.

“The US manufacturing downturn extended into its fourth successive month in October, marking a disappointing start to the fourth quarter for the goods-producing sector. Although the rate of decline moderated, order books continued to deteriorate at a worryingly steep pace, and a further build-up of unsold stock hints at further production cuts at factories in the coming months unless demand revives.

“The survey does, however, provide some encouragement that the current soft patch could prove short-lived. Hurricanes have been blamed for supply disruptions, which should therefore ease in November, and manufacturers are feeling more positive about the outlook than at any time since May, hoping that demand will pick up once the uncertainty generated by the Presidential Election clears.

“It’s notable that orders for investment goods such as plant and machinery have fallen especially sharply in recent months. Headcounts have also been cut for a third straight month, underscoring the reluctance among firms to expand in the face of heightened geopolitical uncertainty, with firms citing tensions around the US election as well as intensifying international conflicts. There is therefore some potential upside to the manufacturing sector if the political environment becomes more conducive to spending and investment after the election.”

US construction spending for September 0.1% versus 0.0% expected

US construction spending for September

Prior month -0.1% revised to +0.1%
US construction spending for September x.x% versus 0.0% expected
Construction spending 4.6% YoY vs 4.1% last month

Private Construction:

Spending at an annual rate of $1,653.6 billion, virtually unchanged from August.
Residential Construction: $913.6 billion, up 0.2% from August. Last month -0.3%.
Nonresidential Construction: $740.0 billion, down 0.1% from August. Last month +0.1%

Public Construction:

Spending at an annual rate of $495.2 billion, a 0.5% increase from August. Last month was 0.3%
Educational Construction: $104.2 billion, up 0.3% from August.
Highway Construction: $141.0 billion, up 0.5% from August.

US October non-farm payrolls +12K vs +113K expected

The latest jobs report for October 2024

Prior was +254K (revised to +223K)
Two-month net revision:-112K
Unemployment rate: 4.1% vs 4.1% prior
Unrounded unemployment rate: 4.145% vs 4.0510% prior
Participation rate: 62.6% vs 62.7% prior
Private payrolls +12K vs +223K prior
Prior private payrolls +223K revised to +223K
U6 underemployment rate: 7.7% vs 7.7% prior (unchanged)
Average hourly earnings: +0.4% vs +0.4% prior
Prior avg hourly earnings: +0.5% (unrevised)
Average hourly earnings y/y: 4.0% vs 4.0% prior
Average weekly hours: 34.3 vs 34.3 prior
Change in manufacturing payrolls: -46K vs -7K prior
Government jobs: +40K vs +31K prior
Full time: -164K vs +631K prior
Part time: -227K vs -201K prior

Comment from BLS on the US Hurricanes

BLS provides insight on the effects of hurricanes Helene and Milton on US employment data, with October surveys showing various impacts on different sectors.

Hurricanes Helene and Milton

Hurricane Helene made landfall on Florida’s Gulf Coast on September 26, 2024, and then
tracked north into several other states. This was before the October reference periods for
both the household and establishment surveys.

Hurricane Milton struck Florida on October 9, 2024, during the reference periods for both
surveys. Prior to the storm’s landfall, there were large-scale evacuations of Florida
residents.

In October, the household survey was conducted largely according to standard procedures,
and response rates were within normal ranges.

The initial establishment survey collection rate for October was well below average.
However, collection rates were similar in storm-affected areas and unaffected areas. A
larger influence on the October collection rate for establishment data was the timing and
length of the collection period. This period, which can range from 10 to 16 days, lasted
10 days in October and was completed several days before the end of the month.

No changes were made to either the establishment or household survey estimation procedures
for the October data. It is likely that payroll employment estimates in some industries
were affected by the hurricanes; however, it is not possible to quantify the net effect on
the over-the-month change in national employment, hours, or earnings estimates because the
establishment survey is not designed to isolate effects from extreme weather events. There
was no discernible effect on the national unemployment rate from the household survey.

BLS will release the state estimates of employment and unemployment for October on
November 19, 2024, at 10:00 a.m. (ET).

S&P Global October Canada manufacturing PM 51.1 vs 50.4 prior

The latest manufacturing survey from S&P Global

Prior was 50.4
new business rose marginally
Underpinning growth in October was a solid rise in manufacturing production
With output rising at a noticeably faster pace than new work manufacturers added to their stocks of finished goods

Commenting on the latest survey results, Paul Smith, Economics Director at S&P Global Market Intelligence said:

“October marked a relatively positive month for Canada’s manufacturing economy, with solid increases in output and employment both stand out statistics from the latest survey data. Firms bolstered their production in anticipation of growth in the months ahead, with warehouse inventories increasing marginally ahead of expected order gains.

“However, firms retained a degree of caution, with buying activity cut again as underlying demand remains soft – despite showing signs of stabilising. This highlights that the sector has some way to go before getting onto a firmer growth trajectory. With latest data also pointing to a dissipation of inflationary pressures, the survey overall provides further support to the Bank of Canada’s current focus on moving quickly towards a more neutral monetary policy stance.”

Commodities

Gold Retreats After Initial Spike Following Disappointing Nonfarm Payrolls Data

Gold experienced a volatile trading day, initially surging to the $2,760s after the release of weaker-than-expected Nonfarm Payrolls (NFP) figures for October. However, the precious metal ultimately retreated to the $2,740s, reflecting a complex interplay of economic data and geopolitical tensions.

Economic Data Impact:

Nonfarm Payrolls (NFP): The US NFP data revealed a disappointing addition of only 12,000 jobs in October, significantly below the expected 113,000 and the revised-down 223,000 from September. While this initially boosted gold prices as investors sought safe-haven assets, subsequent data tempered enthusiasm.
ISM Manufacturing Data: Mixed signals from the Institute of Supply Managers (ISM) added to the volatility. The Manufacturing Purchasing Manager Index (PMI) fell to 46.5 from 47.2, indicating declining activity, while the Manufacturing Prices Paid Index increased to 54.8, suggesting rising inflationary pressures. The latter could diminish the chances of aggressive interest rate cuts by the Federal Reserve, leading to reduced appeal for non-interest-bearing gold.
Labor Market Signals: Despite the disappointing NFP figures, the Unemployment Rate held steady at 4.1%, and Average Hourly Earnings rose to 4.0%. These indicators may compel the Fed to reconsider its approach, potentially favoring a more accommodative monetary policy, which would support gold prices by lowering the opportunity cost of holding the asset.

Geopolitical Tensions:

Gold’s initial gains were further fueled by an uptick in safe-haven demand amidst escalating tensions in the Middle East. Hopes for a ceasefire were undermined by a Hezbollah rocket attack in northern Israel, resulting in seven fatalities. Additionally, Israeli bombings in Beirut led to significant casualties, intensifying concerns over regional stability. Coupled with the uncertainty surrounding the upcoming US presidential election, these factors are likely to sustain gold’s appeal as a refuge.

As the market digests these developments, gold traders will closely monitor further economic data and geopolitical events that may influence future price movements.

Oil: A price increase is likely – Commerzbank

The outcome of the US presidential election is also likely to have an impact on the oil market. However, the Trump effect on prices is rather unclear here, so that only concrete measures are likely to move prices, Commerzbank’s commodity analyst Barbara Lambrecht notes.

Withdrawal of the voluntary cuts can result in an oversupply

“In the short term, the oil price will be determined by the production plans of the eight OPEC+ countries, which had committed themselves to voluntary cuts of 2.2 million barrels per day almost a year ago. At the beginning of September, they had announced that they would start to reopen the oil tap from December onwards, month by month, by a total of around 180,000 barrels per day.”

“However, according to the Reuters news agency, sources close to OPEC have indicated that this production increase will be postponed again by at least one month. This would likely mean that the decision would be postponed until 1 December, when the oil ministers of the cartel will hold their next regular meeting to decide on next year’s production strategy.”

“Although most of the production cuts are fixed until the end of 2025, a withdrawal of the voluntary cuts could result in an oversupply that would put further pressure on prices. If the postponement is announced at the beginning of next week, this should support prices. However, they are unlikely to rise significantly, as China’s crude oil imports, which are due to be published on Thursday, are likely to bring demand concerns back into focus. A price increase would be likely if Iran were to attack Israel again in the coming days.”

Baker Hughes Oil rigs 479 down -1 on the week

The weekly Baker Hughes rig counts

The weekly Baker Hughes rig cuts for the week are showing:

Oil rigs 479 down -1
Gas rigs 102 up +1
Total rigs unchanged at 585.

EU News

UK October final manufacturing PMI 49.9 vs. 50.3 prelim

Final reading released by S&P Global – 1 November 2024

Final Manufacturing PMI 49.9 vs. 50.3 expected and 51.5 prior.

Key findings:

Manufacturing PMI at 49.9 in October.
Reduced new order intakes rein in output growth.
Input price inflation eases sharply.

Comment:

Rob Dobson, Director at S&P Global Market Intelligence:

“UK manufacturing started the final quarter of the year on an uncertain footing amid speculation on government policies ahead of the Budget, which was widely reported to have led to a wait-and-see approach on investment and spending. This domestic headwind, combined with an ongoing loss of export business, led to the first outright contraction in new work intakes since April.

Output growth came close to stalling as a result. The generally lacklustre environment was also reflected in the headline PMI slipping below its neutral 50.0 mark and business optimism hovering only slightly above September’s nine-month low. There was better news on the price front. Input cost inflation fell to a ten-month low, easing to one of the greatest extents in the 33-year survey history.

Selling price inflation also moderated. This may provide some headroom for policy makers to support growth if demand weakens. The November PMI will be especially keenly anticipated to see the near-term impact of the Budget on business conditions and in particular the effect on confidence.”

UK October Nationwide house prices +0.1% vs +0.3% m/m expected

Latest data released by Nationwide Building Society – 1 November 2024

Prior +0.7%
Nationwide house prices y/y +2.4% vs +2.8% expected
Prior +3.2%

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:

“The price of a typical UK home increased by 2.4% year on year in October, though this represented a modest slowdown from the 3.2% pace recorded the previous month. House prices rose by 0.1% month on month in October, after taking account of seasonal effects.

“Housing market activity has remained relatively resilient in recent months, with the number of mortgage approvals approaching the levels seen pre-pandemic, despite the significantly higher interest rate environment.

“Solid labour market conditions, with low levels of unemployment and strong income gains, even after taking account of inflation, have helped underpin a steady rise in activity and house prices since the start of the year.

“Providing the economy continues to recover steadily, as we expect, housing market activity is likely to continue to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth.”

Switzerland October CPI +0.6% vs +0.8% y/y expected

Latest data released by the Federal Statistics Office – 1 November 2024

Prior +0.8%
CPI m/m -0.1% vs -0.3% expected
Prior m/m 0.0%
Core CPI Y/Y +0.8% vs +1.0% prior.

Swiss October retail sales 2.2% vs. 2.5% y/y expected

The latest data from the Swiss Federal Statistical Office – 1 November 2024

Retail Sales Y/Y 2.2% vs. 2.5% expected and 3.2% prior (revised to 2.7%)
Retail Sales M/M -0.5% vs. 0.4% prior (revised to 0.1%)

Switzerland October manufacturing PMI 49.9 vs 49.8 expected

Latest data released by Procure – 1 November 2024
Prior 49.9

ICYMI Goldman Sachs changed their forecast for Bank of England rate cuts. None in December

GS expect a cut in November, then a pause in December

GS expect a 25bp rate cut from Bank of England next week, November 7
then a hold in December (the BoE meeting is December 19)
then a cut to follow at the first meeting for 2025, February 6
the Bank of England Bank Rate projected to fall to 3% by the ned of next year

Asia-Pacific-World News

China loosens rules for foreign investors in equities

Shortens holding period

Chinese officials continue to make moves that highlight an eagerness to boost equity markets. The latest is from the Chinese Commerce Ministry:

Adjusts lookup period for foreign investors to 12 months from 3 years
Will allow foreign investors to carry out strategic investment in the form of tender offers
Lowest asset requirements for foreign investors who are not controlling shareholders
To allow foreign investors to carry out strategic investments in listed companies

China Caixin Manufacturing PMI for October comes in @ 50.3

The second manufacturing PMI for the month from China

Moves into expansion at 50.3

expected 49.7, prior 49.3

Summary:

PMI Growth: Caixin China Manufacturing PMI rose to 50.3 in October, signalling sector expansion.
Supply and Demand: Both improved, with new orders at their highest since June and output growth steady.
Inventories: Manufacturers increased purchases and stock levels in response to market recovery.
External Demand: Export orders remained weak, continuing a three-month contraction.
Employment: Employment fell for the second month, with widespread job cuts, especially in investment goods sectors.
Prices: Input and output prices rose slightly due to higher energy and metal costs, ending recent declines.
Supplier Delays: Persistent delays for the fifth month, with transportation and production struggling to meet demand.
Business Confidence: Optimism improved, reaching a five-month high, though still below average.
New Policies: Policies from late September aimed to stabilize demand and foster optimism, though labor market pressure remains.
Policy Focus: Sustaining growth in 2024 will require boosting consumer demand, with emphasis on increasing household disposable income.

PBOC sets USD/ CNY reference rate for today at 7.1135 (vs. estimate at 7.1122)

PBOC CNY reference rate setting for the trading session ahead

In open market operations (OMOs):

PBOC injects 17bn yuan via 7-day RR, sets rate at 1.5%
293bn yuan mature today
net drain is 276bn yuan

Senior IMF official warns of tit-for-tat tariffs, China property sector, yen intervention

Broad comments on Asia from the International Monetary Fund (IMF)

Senior IMF official:

China’s property sector problems have not been addressed in a comprehensive way, leading to consumer confidence plummeting.
The risk of deflation in China has increased, which hurts Asian countries that must compete with China’s falling export prices.
Any kind of political uncertainty has a bearing on sentiment and economic activity, when asked about Japan’s general election outcome.
Since the Bank of Japan is normalizing monetary policy and interest rates are rising, it’s even more important for Japan to start fiscal consolidation in earnest.
Any new initiative or fiscal support that Japan deploys should be targeted and funded within the budget, instead of by issuing more debt.
Any further rate hikes by the Bank of Japan should be gradual and data-dependent.
Japan is fully committed to a flexible exchange rate regime, when asked about authorities’ recent remarks describing yen moves as ‘one-sided and sharp.’

Australian manufacturing PMI for October 2024 (final) 47.3 (prior 46.7)

Judo Bank / S&P Global final manufacturing PMI for Australia in October 2024

Judo Bank / S&P Global final manufacturing PMI for October 2024 in Australia comes in at 47.3. Another month in contraction.

prior 46.7
the preliminary was 46.6

In summary from the report:

Trading Conditions: Improved toward the end of October but remain weak historically, with gradual headcount reductions continuing.
Output & New Orders: Increased slightly from previous lows, showing improvement compared to September; decline in output has stabilized.
Household Stimulus Impact: Not benefiting local manufacturers significantly; services sector remains resilient in contrast.
Exports: Subdued, with New Export Orders at low levels similar to the early pandemic.
Employment: Manufacturing employment has mostly declined monthly throughout 2024, unlike high demand in the services sector.
Pricing: Output prices rose to a five-month high, indicating possible domestic goods inflation above the RBA’s target.
Input Costs: Fell to pre-pandemic levels, easing margin pressures and improving operating margins.
Business Confidence: Future activity index is above neutral, showing positive outlook but with optimism at its lowest since 2016, despite slight improvement from mid-year lows.

Australian Q3 PPI +0.9% q/q (expected +0.7%)

Producer Price Index (PPI) measures a change in input prices of raw, semi-finished or finished goods and services.

Australia PPI (Q3) +0.9% q/q

expected 0.7%, prior 1.0%

For the y/y +3.9%

prior +4.8%

Australian housing finance data (September 2024)

And household spending rises

Australian home loans value (September 2024) -0.3%

expected +1.0%, prior +2.1%

Owner-occupier loan value +0.1%

prior +2.4%

Investor loan value -1.0%

prior +1.8%

***

Also data for Household spending +0.4% m/m in September

prior +0.2%

+1.3% y/y

prior +2.7%

Preview on Reserve Bank of Australia to hold cash rate at next week’s meeting

RBA forecast via Reuters polling

Reuters poll of economists finds:

RBA on hold in November and December

All 30 economists in the poll expected the RBA to hold at 4.35% at the November 4-5 meeting
All but one expect a hold at the December meeting

20 of 29, expected a 25 basis point cut in February

8 predict no change
1 sees a 50bp cut

****

BlackRock Australasia:

“We think the data was pretty much in line with the RBA’s thoughts about the path of core inflation. That is, it’s still too high for them to think about cutting the cash rate in 2024…early 2025 is probably a bit more realistic.”

Australia’s big four local banks, ANZ, CBA, NAB, and Westpac forecast no rate change this year

all expect a cut at the February 2025 meeting

New Zealand Building Permits for September 2024: +2.6% m/m (prior -5.3% )

New Zealand Building Consents data

New Zealand Building Permits for September 2024: +2.6% m/m

prior revised to -5.2%, from -5.3%

For the y/y +1.6%

BoJ Quarterly Outlook Report: Rise in minimum wage could push up services prices

Highlights from the BoJ’s quarterly outlook report

If rise in minimum wage continues, it could push up services prices.
Recent data shows labour conditions tightening more for permanent workers than that for part-time workers.
This trend is seen broadening.

Bank of Japan Governor Ueda dropped a hint on what he sees as the main block to rate hikes – UBS

A snippet now via UBS on what they gleaned from the Bank of Japan yesterday

Analysts there say Ueda hinted at market volatility being the main blockage to further rate hikes (‘policy normalisation’ in central bank gobbledegook speak) at present. UBS also note that the buyers that they had seen pivoted to selling during Ueda’s press conference. They attribute some of this to trimming positions taken on Monday after the weekend election.

Japan final manufacturing PMIs (October 2024 ): 49.2 (prior 49.7)

S&P Global / Jibun Bank final Japanese manufacturing PMI for October 2024

Manufacturing PMI from Japan, final for October 2024:

preliminary was 49.0
prior 49.7

From the report, not very encouraging for the Japanese economy:

stronger deterioration in the health of the manufacturing sector in Japan
output fell only marginally but at the strongest rate since April
new orders contracted at the steepest pace for three months
Firms often mentioned weakness in domestic and global demand had weighed on sales and output, notably in semiconductors and autos.
goods producers signalling a renewed fall in purchasing activity
broad stagnation in employment levels
firms increasingly worked through backlogs of work, a sign that new order inflows are not enough to sustain production
confidence was little-changed from the near-two year low seen in September
firms highlighted concern regarding the timing of the recovery from the current economic malaise

Japan chief cabinet secretary Hayashi: expects BOJ to work closely with government

Japan Chief Cabinet Secretary Hayashi:

Monetary policy falls under jurisdiction of BOJ, no comment on govt’s view on its decision
Expect BOJ to conduct appropriate monetary policy to sustainably, stably hit its price target, working closely with govt

Japan opposition party chief: BoJ should not raise interest rates for at least half a year

Comments from Japan’s opposition part DPP chief Tamaki

BoJ should not raise interest rates for at least half a year.
Necessary to eventually normalise monetary policy.
Monetary policy should not be used to manipulate currency rates.
Effects of currency interventions only have short-term effects.

Cryptocurrency News

Ethereum on the Rise: Potential Retest of $2,707 as Accumulation Resumes

Ethereum (ETH) is currently priced at $2,520, showing a decline of over 1% on Friday. However, recent on-chain metrics indicate a significant resurgence in investor accumulation, suggesting that Ethereum could retest the key resistance level of $2,707 if it successfully bounces off the $2,490 support level.

Accumulation Indicators:

Investor Activity: Ethereum saw a substantial increase in holders, with 3.64 million new addresses added between September and October, a 40% rise compared to the previous two months. This growing base of holders reflects an increased appetite for Ethereum among investors.
ETFs Inflows: Ethereum exchange-traded funds (ETFs) reported $13 million in net inflows on Thursday, marking the third consecutive day of positive flows. This trend indicates that institutional investors are gradually reallocating capital to Ethereum, bolstering bullish sentiment.
Mean Coin Age: The Mean Coin Age metric, which tracks the average duration that ETH tokens have remained in their current addresses, has been on an upward trend since August 23. Although there was a slight downturn on October 25, the recent resumption of the uptrend indicates renewed accumulation among on-chain holders.

Whale Activity:

Recent data from EmberCN highlights significant whale activity, with one notable investor accumulating 19,772 ETH valued at approximately $49.62 million over the past three days. Since September 17, this whale has withdrawn 54,272 ETH (around $137 million) from exchanges such as Bybit and Binance, suggesting a strategic accumulation approach.

Market Dynamics:

The interplay of these metrics suggests that Ethereum’s price could experience upward momentum. A successful bounce from the $2,490 support level would set the stage for a retest of the $2,707 resistance, reaffirming bullish sentiments in the market.

As investors remain engaged and accumulation continues, Ethereum’s price action will be closely monitored in the coming days, with key support and resistance levels shaping the trading outlook.

IMX Plummets Over 13% as Immutable Faces SEC Wells Notice

IMX has extended its losses, dropping more than 13% after Immutable announced it received a Wells Notice from the Securities and Exchange Commission (SEC), linked to the private sale of its tokens in 2021. This decline follows a broader trend of regulatory scrutiny within the cryptocurrency sector, raising concerns among investors.

Market Reaction:

SEC’s Wells Notice: Immutable revealed that it received the Wells Notice shortly after its initial meeting with the SEC, prompting questions about the agency’s regulatory approach. A Wells Notice indicates that the SEC has completed its investigation and plans to pursue enforcement actions, but allows the company to respond to the claims first.
Investor Sentiment: The urgency surrounding the issuance of the Wells Notice has heightened concerns within the crypto community. Notably, the company criticized the SEC for not providing specific details about the nature of the investigation. This sentiment was echoed by legal experts in the crypto field, highlighting the increasingly aggressive regulatory stance against cryptocurrency firms.

Price Levels:

IMX’s price performance has been sharply impacted, now sitting below critical support at $1.041. Should the token maintain a daily close below this level, further declines could follow, exacerbating the current bearish trend in response to regulatory developments.

Broader Implications:

The issuance of Wells Notices to multiple crypto firms—including Consensys, Uniswap, and OpenSea—reflects a regulatory crackdown perceived by many as “regulation by enforcement.” As the crypto community looks toward the upcoming presidential election, there is cautious optimism for a more favorable regulatory environment in the future.

As IMX navigates these challenges, market participants will closely monitor price action and any developments from Immutable regarding their situation with the SEC.

Follow our recently launched pages. Join our community and never miss a beat in the dynamic world of trading.

https://www.facebook.com/BilalsTechLtd

https://www.linkedin.com/company/bilals-tech/

https://t.me/Market_Moving_News

Round up of today’s market news

ByBilals Tech