In the morning, on October 16, the futures on the US S&P index are adding 0.08% to 5867.25 points. The previous day, US indices ended down by 0.75-1%, and the S&P 500 fell from record highs. This is reported by Reuters.
The situation in the stock market
Bryn Tolkington, managing partner of Requisite Capital Management, said on CNBC’s Closing Bell program that the stock market will likely be volatile in the coming weeks as investors try to navigate the earnings season and the presidential election.
This week’s earnings reports were mixed. Good reports from major banks were somewhat offset by weak forecasts from companies such as UnitedHealth Group and chipmaker ASML. On Wednesday, Morgan Stanley and Abbott Laboratories will publish their financial results.
Asian market
In Asia, there is no single trend, with Japan’s Nikkei leading the decline after the collapse of Wall Street. The Nikkei 225 index fell by 1.84% to 39180.23 points, China’s Shanghai Composite is up 0.4% to 3214.01 points, Hong Kong’s Hang Seng rose by 0.9% to 20501.77 points, and Korea’s KOSPI fell by 0.64% to 2616.38 points.
Traders in Asia also assessed economic data from the region. South Korea’s seasonally adjusted unemployment rate in September was 2.5%, up from 2.4% in August.
In addition, investors will be watching for new stimulus measures to support the real estate sector in China, as the country’s housing minister will hold a press briefing on Thursday.
Oil prices
Oil stabilizes after a sharp drop amid uncertainty in the Middle East: Brent futures rose 0.36% to $74.52 per barrel, and WTI price — 0.44% to $70.89.
On Tuesday, oil prices fell by more than 4% to almost a two-week low due to a weaker demand outlook and after media reports that Israel will not strike Iranian nuclear and oil facilities, which eased the risk of supply disruption.
However, concerns about the escalation of the conflict between Israel and the Iranian-backed Hezbollah militant group remain.
Currency
The dollar strengthened against a basket of currencies due to the US Federal Reserve’s forecasts. The dollar index DXY is losing 0.03% to 103.24 points. The Eur/USD pair is gaining 0.05% to 1.1088 on the forex market.
Recent data indicating a resilient economy, coupled with slightly higher-than-expected inflation in September, has led traders to reduce bets on aggressive monetary easing by the Federal Reserve.
According to the CME Group’s FedWatch Tool, traders estimate the probability of a 25 basis point rate cut at the November 7 meeting at about 94%, while the probability of no change is about 6%.
