By Deepta Bolaky
The stock market remains driven by headlines on the US stimulus package leading up to the most-awaited political event of the year. European and US stocks edged mostly lower as stimulus chaos, Brexit woes, and COVID-19 spread across European countries continue to rattle the financial markets.
After a choppy trading session across the trading day, major US equity indices ended in negative territory as hopes of a deal drifted into another day.
On the earnings front, Tesla reported its financial results for the third quarter of 2020 after market close on Wednesday. Its share price skyrocketed in after-trading hours following the release. In the third quarter, the electric car company produced just over 145,000 vehicles and delivered nearly 140,000 vehicles.
“Total revenue grew 39% YoY in Q3. This was achieved mainly through substantial growth in vehicle deliveries as well as growth in other parts of the business. At the same time, vehicle average selling price (ASP) declined slightly compared to the same period last year as our product mix continues to shift from Model S and Model X to the more affordable Model 3 and Model Y. ”
In the FX space, the US dollar struggled against its peers as the day progressed without much certainty about the state of negotiations on the stimulus package. Amid a relatively subdued economic calendar, major currencies pairs were mostly driven by the broader sentiment of the markets.
The Canadian dollar was among the worst performers against the greenback dragged by weaker commodity prices and mixed economic data:
The British Pound and Euro got a boost on the news that the EU and the UK will resume talks while the Antipodeans were mostly left at the broader sentiment of the markets and benefited from cautiously optimistic tones.
Crude oil prices failed to retain the upside momentum seen earlier this week. The oil market remains underpinned by the continuous uncertainty on the demand side. Europe is under various types of curfews and social distancing measures following the rapid acceleration of coronavirus cases across the region.
After a downbeat API inventory report, the Energy Information Administration reported a decrease of 1.0 million barrels of US commercial crude oil inventories from the previous week. As of writing, WTI Crude oil (Nymex) and Brent Crude (ICE) were trading at around $39.90 and $41.73 respectively.
Gold edged higher on the broad dollar weakness but the main driver for the precious metal stays the stimulus package. As of writing, the XAUUSD pair is trading around $1,922.
Source: GO MT4
By Deepta Bolaky
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|Friday, 22 October 2020
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