Morning Wrap (17.10.2024)

In China, investor sentiment remains weak despite a slight rebound of 0.40-0.50% in stock indices today. Japan's JP225 index is also losing ground, trading around 39,000 points, down almost 1.20%. Meanwhile, Australia's index is trading without significant changes.

American stocks ended yesterday's session on a positive note, unlike other major global indices. The US500 closed around 5,890 points, while the US2000 remained within a narrow range between 2,300-2,305 points, still attempting to break above a key resistance zone.

The strongest currency in the first part of the day is the Australian dollar, gaining strength after lower-than-expected unemployment data. AUDUSD is up 0.40%, reaching 0.66940. On the other hand, the weakest currency is the Swiss franc, losing between 0.2-0.4% against other currencies. Forex market volatility is not significant.

Employment in Australia exceeded forecasts for the sixth consecutive month in September, achieving the highest increase since February 2024. The number of employed people rose by 64.1 thousand, against an expectation of 25.2 thousand. The unemployment rate came in slightly below expectations at 4.1%, compared to the forecast of 4.2% and the previous rate of 4.2%.

Labor market data once again surpassed expectations, indicating the strength of the sector. Following the report, investors lowered their expectations for interest rate cuts by the RBA, and the Australian dollar rose by 0.70% to 0.67100 USD.

Today, we also received trade balance data from Japan. Japan reported a trade deficit of 294.3 billion yen (2 billion USD) in September. Exports fell by 1.7% year-on-year, against expectations of a 0.50% increase. Imports rose by 2.1% year-on-year, while analysts had forecast a 3.2% year-on-year rise.

Oil (OIL.WTI) continues its decline, driven by weak future outlooks and the de-escalation of the Middle East conflict. Oil prices are down nearly 0.80% today, testing the support levels around 70 USD per barrel once again.

Gold extends yesterday's rise to a record level of 2,685 USD per ounce (+0.40%).

The latest presidential poll by FOX News shows former President Trump ahead of Vice President Kamala Harris 50% to 48%. Just 20 days before the election, the situation is reversed compared to last month, when the Democratic candidate was leading. 

China announced a new property market stimulation plan on Thursday. At a briefing, Housing Minister Ni Hong said China will expand the whitelist of real estate projects and accelerate bank lending for these unfinished developments to 4 trillion yuan (US$561.8 billion) by the end of the year. A total of 2.23 trillion yuan has already been approved as loans to developers, a figure that is expected to double to 4 trillion yuan by the end of 2024.

Bitcoin is down by 0.30%, remaining within the range of 67,000-68,000 USD. Slightly higher gains are seen in Ethereum, which is up by 1.00%, reaching 2,640 USD. The rest of the altcoin market is trading without major changes, with a total market capitalization of around 620 billion USD.