Morning Wrap (14.10.2024)

• We are kicking off a new week of trading on international financial markets. 

• As a reminder, stock markets in Europe, the US and Asia were mostly up on Friday, and today they are being extended, most notably in China.

• Chinese stocks, at least for now, are not losing hope for new economic stimulus packages. Even so, optimism and soaring growth have slowed somewhat since last week. At a press conference on Saturday, China gave few details about new stimulus to the economy, which was a slight disappointment. Still, the financial regulator says it will lower financing costs for small and medium-sized enterprises. What's more, the reading of China's CPI that we learned yesterday pointed to further economic problems for China. The reading for September came in at 0.4% y/y versus the expected 0.8% y/y and the last reading of 0.6%. For the moment, however, indexes in mainland China are gaining, while the Hang Seng is losing slightly.

• The United States celebrates Columbus Day today, so the bond market will be closed, but the stock market will remain open as usual. Canada, meanwhile, celebrates Thanksgiving Day.

• China launched military maneuvers around Taiwan today. However, this did not trigger a market reaction. 

• The economic calendar for today does not contain many macro readings that could raise the volatility seen in the markets. On the other hand, however, at noon investors will hear several speeches by Fed bankers.

• The beginning of the day brings declines in the quotations of energy commodities. WTI crude oil and NATGAS are currently losing more than 1.2%. 

• Bitcoin is gaining at the beginning of the day. The major cryptocurrency gains 1.65% and thus breaks out above $64,000.

Market volatility currently observed in the FX market. Source: xStation