Third-quarter earnings kick off next week, with updates expected from health care giant Johnson & Johnson and major banks such as JPMorgan Chase, Citigroup, and Wells Fargo. At the same time, Brexit talks continue ahead of an EU summit Thursday, while the virtual WBG/IMF Annual Meetings are also in the spotlight. Key economic data to follow include US retail sales and industrial production; UK jobs report; China inflation and trade balance; Australia employment figures; and India inflation data. Central bank meetings will be held in South Korea, Indonesia, and Singapore.
U.S. futures remain fairly flat ahead of tomorrow’s open with the Dow Jones currently sitting down (-0.28%).
Gold markets gapped higher to start the week as the dollar languished around three-week lows while hopes for a stimulus deal out of Washington boosted bullion’s demand as a hedge against potential inflation.
The US dollar hovered near its lowest against a basket of currencies in nearly three weeks on Monday as risk sentiment returned to market amid renewed hopes for another fiscal stimulus. Negotiations were expected to continue on a fourth coronavirus stimulus package, even though US House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin failed to reach an agreement last week.
Natural Gas jumped to a 20-month high of $2.9/MMBtu on October 12, more than doubling its price from an over 25-year low touched in June on the back of growing demand ahead of the upcoming fall and winter seasons and falling inventories.
Oil prices have been stuck near $40 a barrel in the last four months as hopes for a smooth recovery in fuel demand faded with the reimposition of mobility curbs in the wake of rising coronavirus infections. The global economy has achieved only a weak recovery from the impact of the pandemic, and the global oil market remains under heavy pressure, particularly the market for jet fuel, as airlines struggle to survive their worst downturn. Still, support came from OPEC+ as top world oil producers have been reducing production since May to prevent a new glut of crude.
The number of confirmed COVID-19 cases surpassed 37 million world wild this weekend, with over 1 million in deaths.