Morning wrap (27.10.2020)

• US indices took a dive during yesterday's session on Wall Street. S&P 500 declined 1.86%, Nasdaq dropped 1.64% and Dow Jones closed 2.29% lower. Russell 2000 declined 2.21%

• Indices in Asia-Pacific are trading lower as well. S&P/ASX 200 declines 1.7%, Nikkei drops 0.1% and Kospi trades 0.6% lower. Indices from China trade mixed

• DAX futures point to a slightly higher opening of the European cash session

• Senate Majority Leader McConnell adjourned the US Senate until November 9. This means that US stimulus bill will not be passed before elections

• Bild reports that France is considering full lockdown in Paris, Lyon and Marseille

• Study by Imperial College of London claims that the level of coronavirus antibodies within recovered patients drops too fast to develop herd immunity. However, study was not peer reviewed yet

• Chevron decide to shut down production in Gulf of Mexico as hurricane Zeta approaches

• Trump has once again claimed that there are many irregularities with mail-in ballots. Twitter banned his tweet on the matter

• United States approved more advanced weapon sales to Taiwan. China opposes this and urges United States to halt arms sales to Taiwan

• South Korean GDP increased 1.9% QoQ in Q3 2020

• Chinese industrial profits increased 10.1% YoY in September. However, they are -2.4% YoY lower if we consider January-September period

• CAD and NZD are top moving currencies while USD and JPY are top laggards. EM currencies trade higher against US dollar

• Precious metals advance on USD weakness. Oil ticks higher as approaching hurricane disrupts production in Gulf of Mexico

411 thousand new coronavirus cases were reported yesterday. Source: worldometers, XTB