Daily summary: Wall Street relief rally loses steam

• European indices extended rally for the fourth session, with the German DAX adding 0.92% thanks to solid performance of automobiles & parts and construction & materials companies. The 

• FTSEE 100 finished 0.24% higher as UK Prime Minister Liz Truss apologized for her mistakes regarding tax cut plans. However, according to a YouGov poll, 55% of Conservative party members want Truss to resign while only 38% believe she should remain in the position. In addition, 55% said that they would vote for Rishi Sunak should they get another chance to decide between Sunak and Truss.

• Meanwhile the BoE said that a report in the FT about a new delay to the start of its sales of government bonds was inaccurate.

• German investor morale unexpectedly improved in October, though it remained subdued and close to 14-year lows. 

• A news blackout is underway in southern Ukraine suggesting an imminent push to Kyiv, according to Sky News.

• US indexes launch today's session in upbeat moods following better than expected quarterly results from Johnson & Johnson and Goldman Sachs. However, the Goldman CEO believes that the global economy continues to face significant headwinds. Initial enthusiasm faded away later in the session after a BofA survey  showed that sentiment on stocks and global growth among fund managers shows full capitulation, opening the way to an equities rally in 2023.

• US industrial production figures came in better than expected, signaling the resilience of the world's largest economy against growing macro headwinds, increasing chances that the FED will continue to raise rates in the future.

• Oil fell sharply on Tuesday Doubts as China delayed the release of GDP data for Q3 2022 and monthly activity data for September, while Bloomberg reported that White House may make another SPR announcement this week, which puts further pressure on prices.  Despite negative sentiment, OIL.WTI managed to defend major support at $81.75. 

• AUD and NZD are the best performing major currencies while GBP and CAD lag the most. USDJPY jumped above 149.00 level, triggering a verbal intervention from Japanese officials, who once again reiterated that they will not tolerate excessive FX moves driven by speculators. 

• Major cryptocurrencies fell slightly during today's session. Bitcoin is currently losing 0.4% and Ethereum fell over 1.4%.

US500 jumped higher after the US open, however resistance at 3800 pts, which coincides with 38.2% Fibonacci retracement of the upward wave launched in March 2020, proved to be too strong for buyers. If sellers manage to regain control, then another downward impulse towards support at 3500 pts, which is marked with a lower limit of the 1:1 structure, may be launched. Source: xStation5