On Monday, 21 October 2024, global markets saw mixed movements driven by various economic and geopolitical factors.
KEY INDICATORS
Asian market
In Asia, stock markets showed volatility, with investors digesting China’s central bank decision to cut interest rates in an effort to support its slowing economy.
Despite the rate cut, Hong Kong stocks struggled, contributing to overall market uncertainty in the region.
US Wall Street
On Wall Street, US stock futures edged lower in pre-market trading, while bond yields increased.
Investors are bracing for a busy week of earnings reports, with 112 S&P 500 companies expected to release their quarterly results this week.
European market
In Europe, stocks opened relatively flat as traders awaited key corporate earnings reports from major companies like Tesla and Netflix.
Gold, meanwhile, continued its impressive rally, reaching new heights amid concerns over the Middle East conflict and central bank rate cuts across several regions.
Earnings reports from major corporations, particularly in the tech and financial sectors, will impact investor confidence and sector performance.
Technical Indication showing us a potential incline on the US Index market over a short- and medium-term period following the continuous of the earnings report of the latest quarter.
MARKET MOVERS
Nasdaq100
Potential long preference Long positions above 20625.25 with targets at 20901.25 & 21169.00 in extension. Alternative scenario Below 20219.25 look for further downside with 19975.75 & 19569.75 as targets. The RSI is mixed with a bullish bias.
S&P 500
Potential long preference Long positions above 5878.12 with targets at 5896.99 & 5924.89 in extension. Alternative scenario Below 5816.18 look for further downside with 5775.56 & 5743.98 as targets. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Earnings recap: Netflix and Intuitive Surgical boost Nasdaq 100 and S&P 500
Nasdaq 100 and S&P 500 surged to record highs after Netflix and Intuitive Surgical beat Q3 earnings expectations.
82% of S&P 500 companies reporting so far exceeded profit estimates by a median of 6%, boosting market optimism.
Netflix added 5.1 million new subscribers in Q3, driving a 7% stock surge and renewed confidence in tech stocks.
Procter & Gamble reported weak sales for the second straight quarter, hit by softer US and Chinese consumer demand.
American Express beat profit expectations, but shares fell 5% due to concerns over inflation and revenue slowdown.
Nikkei 225
Potential long preference Long positions above 39189.02 with targets at 39313.95 & 39453.58 in extension. Alternative scenario Below 38957.54 look for further downside with 38850.98 & 38715.02 as targets. The RSI calls for a rebound.
TODAY’S NEWS HEADLINES
Gold hits fresh high in record-setting rally amid global uncertainties
Gold rose to a fresh high on Monday, extending its blazing rally amid uncertainties surrounding the US election, simmering Middle East tensions and rate cuts by major central banks, while silver scaled a near 12-year peak.
Spot gold was up 0.6% at USD2,735.75 per ounce.
US gold futures were 0.8% higher at USD2,751.
Helped by bullion’s rally, spot silver rose 1.2% to USD34.05 per ounce, its highest since late 2012.
Oil prices steady after losing over 7% last week
Oil prices were broadly steady on Monday, following a more than 7% drop last week on worries about demand in China, the world’s top oil importer, and an easing of concerns about potential supply disruptions in the Middle East.
Brent crude futures were up 38 cents, or 0.5%, to USD73.44 a barrel.
US West Texas Intermediate crude futures were up 44 cents, or 0.6% to USD69.66 a barrel.
