Morning wrap (21.10.2020)

• US indices finished yesterday's session higher. S&P 500 added 0.47%, Nasdaq gained 0.33% and Dow Jones increased 0.40%. Russell 2000 finished 0.30% higher

• Gains can be spotted during the Asian session as well. Nikkei gains 0.4%, S&P/ASX 200 trades 0.1% higher and Kospi adds 0.2%. Indices from China trade lower

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

• No agreement on the US stimulus bill was reached but talks continue in spite of missing the deadline. Senate Majority Leader McConnell reportedly warned Trump not to pursue large stimulus deal before elections

• Trial of Covid-19 vaccine developed by AstraZeneca is expected to resume this week

• Netflix reported Q3 revenue at $6.44 billion (exp. $6.38 billion) and EPS of $1.74 (exp. $2.14). Company added 2.2 million new subscribers in Q3 2020 (exp. +3.6 million) 

• South Korean exports increased 5.9% YoY in the first 20 days of October

• Preliminary retail sales data from Australia pointed to a 1.5% MoM drop in September

• New Zealand credit card spending was 1% MoM higher in September

• API report pointed to a 0.6 million barrel build in crude inventories (exp. -0.2 mb)

• AUD and NZD are best performing major currencies while USD and CHF lag the most

• Precious metals benefit from USD weakening with silver surging. Oil posts minor gains

Pandemic situation. Source: worldometers, XTB