U.S. stock futures looked positive

Daily Analysis - 21/10/2020

Netflix shares dropped following earnings miss


U.S. stock index futures increased in value early morning trading after White House Mark Meadows the Chief of Staff stated that House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have made “good progress” regarding stimulus discussions. Adding to that they said before that they “still have a way to go” before a deal is reached.

Futures contracts attached to the Dow Jones Industrial Average surged 160 points. S&P 500 futures and Nasdaq-100 futures are both exchanged in a moderately positive area.

Stocks have been exchanging based on legislators’ recognized development or deficiency thereof it seems that yesterday's session ended stronger after Pelosi informed Bloomberg TV that she’s “optimistic” about a possible funding arrangement.

Following Pelosi and Mnuchin’s conference yesterday, Meadows said CNBC’s “Closing Bell” that the two will discuss the matter again today and that he wishes to mark “some kind of agreement before the weekend.”

A slew of companies announced quarterly earnings following the bell yesterday, most prominently Netflix. Shares of the streaming titan fell 5.7% after the company missed earnings estimates, and announced fewer-than-expected subscriber interests. On the other hand, shares of Snap went up 24% after the company announced some surprise earnings.

Gold positive vs the greenback

Gold prices surged early today as confidence that U.S. legislators could strike an agreement on a pre-election coronavirus support package constrained the famous safe-haven dollar and reinforced the precious metal’s attractiveness as an inflation hedge.

Spot gold increased 0.6% to $1,917.76 per ounce, having earlier scored a 7-day top. U.S. gold futures were higher 0.4% at $1,922.80.


Oversupply concerns drove oil under

Oil prices dropped early today after a shock ascent in U.S. crude stockpiles. That fact added to anxieties regarding a global oversupply as a surge in global Covid-19 cases feeds demand concerns and production rebounds in Libya.

Brent crude futures for December delivery were at $42.94 a barrel, down 22 cents, while December U.S. West Texas Intermediate (WTI) crude futures fell 23 cents, to $41.47 a barrel.


Australian and New Zealand looked positive while Euro follows

The Australian and New Zealand dollars, which have decreased versus other majors’ profited on the greenback due to expectations of monetary relaxation in both countries, each increased by about 0.4%.

The euro scored a 30-day top of $1.1844. The Japanese yen has been kept in check while the increasing confidence undermines the greenback, although the simultaneous increase in U.S. yields drew investment streams from Japan out of yen and into dollars. The yen went up 0.1% today.

The above content is considered to be market commentary information and shall not be perceived as independent investment research or investment advice.


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