Dow Jones reaches new record high

“Take your profits or someone else will take them for you.” – J.J. Evans

 

 

HEADLINES

 

 

• Dollar dips as risk sentiment improves, Bitcoin hits record high
• AUD/USD trades at fresh monthly highs above 0.7500
• EUR/USD rises to test 1.1650 amid a weaker dollar
• Oil rises as U.S. crude stockpiles dwindle
• Gold Up as Dollar Weakens, U.S. Bond Yields Rise
• S&P 500, Dow near records as earnings reports soothe investor fears
• Stocks making the biggest moves after hours: Netflix

 

 

FOREX

 

 

Dollar dips as risk sentiment improves, Bitcoin hits record high

 

The dollar dipped on Wednesday as risk sentiment improved and as investors focused on rising commodity prices and when global central banks are likely to begin hiking interest rates to fend off persistently high inflation.

The greenback hit a one-year high against a basket of other currencies last week as market participants ramped up bets that the Federal Reserve will raise rates sooner than expected to quell rising price pressures. Those bets have faded, however, while investors are pricing for even more aggressive rate increases in other countries and as commodity-linked currencies including the Canadian and Australian dollars outperform.

In cryptocurrencies, bitcoin hit a record high of $67,017, a day after the first U.S. bitcoin futures-based exchange-traded fund began trading.

 

AUD/USD trades at fresh monthly highs above 0.7500

 

The AUD/USD climbs to four-month fresh highs, up 0.54%, trading at 0.7514 during the New York session at the time of writing. Positive market sentiment surrounds the financial market, even though the Federal Reserve’s imminent bond taper announcement and higher energy prices. The AUD/USD pair has risen more than 1% since the beginning of the week, in line with investors’ risk appetite.

 

EUR/USD rises to test 1.1650 amid a weaker dollar

 

The EUR/USD is rising modestly on Wednesday after making a rebound from 1.1615. During the American session, the pair climbed to 1.1651, slightly below the daily highs. The euro remains unable to break the 1.1650 barrier.

 

 

COMMODITIES

 

 

Oil rises as U.S. crude stockpiles dwindle

 

Oil prices edged higher on Wednesday, rebounding from early losses after U.S. crude stockpiles unexpectedly fell and inventories at the nation’s largest storage site hit their lowest level in three years. The market had softened overnight after the Chinese government stepped up efforts to tame record high coal prices and ensure coal mines operate at full capacity as Beijing moved to ease a power shortage.

 

Gold Up as Dollar Weakens, U.S. Bond Yields Rise

 

Gold was up on Wednesday morning in Asia, with a softer dollar offsetting an uptick in U.S. bond yields. Fears also remain that interest rate hikes could come earlier than expected. The yellow metal climbed as much as 1.2% on Tuesday before a U.S. Treasury yields rally forced it to give up most of those gains. Benchmark 10-year Treasury yields hit their highest level since May 20, 2021, on Wednesday. However, offsetting these higher yields was a weakening dollar, which inched down on Wednesday.

 

 

STOCKS

 

 

S&P 500, Dow near records as earnings reports soothe investor fears

 

The Dow briefly touched a record high and the S&P 500 traded close to its peak on Wednesday as investors eyed better than expected third-quarter earnings from U.S. companies. The Dow Jones Industrials Average briefly surpassed its previous record reached in mid-August, while the benchmark S&P 500 index at one point came within roughly five points of its early September record.

 

Stocks making the biggest moves after hours: Netflix

 

Netflix shares whipsawed in extended trading after the streaming giant beat Wall Street estimates on earnings and subscriber growth. The company reported profit of $3.19 per share versus the Refinitiv consensus of $2.56 per share. Netflix also saw 4.4 million global paid net subscriber additions in the third quarter, solidly beating the Street Account estimate of 3.84 million.

 

 

CHART

 

 

S&P 500 – Daily Candlesticks

 

 

Source: GKFX Prime Metatrader 4

SP500 is testing its record high in what could either lead to a breakout or potential double top. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

 

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/aud-usd-trades-at-fresh-monthly-highs-above-07500-202110201532
https://www.fxstreet.com/news/eur-usd-rises-to-test-11650-amid-a-weaker-dollar-202110201535
https://www.investing.com/news/economy/yen-skids-to-fouryear-low-as-stocks-rally-with-treasury-yields-2648870
https://www.cnbc.com/2021/10/20/oil-markets-china-coal-prices.html
https://www.cnbc.com/2021/10/19/stocks-making-the-biggest-moves-after-hours-netflix-united-airlines-more.html
https://www.investing.com/news/commodities-news/gold-up-as-dollar-weakens-us-bond-yields-rise-2648928