Market News Summary
Investors around the world are closely watching the developments in Gaza as the escalating conflict in Gaza has shifted the focus to growing geopolitical risks in the financial markets. This is amid concerns of delivering a new blow to the exhausted global economy. As Israel continues to mobilize its forces in preparation for a ground invasion of the Gaza Strip, oil prices surged by approximately 6% on Friday as investors anticipate the impact of the conflict on supplies from neighboring countries in the world’s largest oil-producing region.
The International Monetary Fund (IMF) believes that the recent decline in the Japanese yen currency does not warrant any intervention by the authorities in the currency market. Sanjaya Panth, Deputy Director of the IMF for Asia and the Pacific, stated in remarks to reporters that fundamentals are driving the yen exchange rate, and pressure on the Japanese currency will continue as long as differences in interest rates persist between Japan and major economies.
Dollar Index (USDX)
The war between Israel and Hamas has led to an increased focus on growing geopolitical risks for financial markets. Investors are waiting to see if the conflict may draw in other countries with the potential to deliver a new blow to the global economy.
Consumer sentiment in the United States deteriorated in October as households expected higher inflation in the coming year. However, it is likely that the strength of the labor market will continue to support consumer spending.
Currently, the U.S. dollar index is trading below its pivotal point at $106.25.
Pivot Point: 106.35
Spot Gold (XAUUSD)
Gold prices fell today, Monday, October 16, after reaching their highest level in nearly a month due to escalating concerns over the conflict between Israel and the Hamas movement. In the previous session, these concerns had driven the precious metal to rise by more than 3%.
Gold in spot markets dropped by 0.5% to $1,921.69 per ounce. Meanwhile, U.S. gold futures declined by 0.4% to $1,934.40 per ounce.
Pivot point: 1911
Dow Jones Index (DJ30ft – US30)
U.S. stock futures rose during overnight trading on Sunday ahead of a busy week for corporate earnings reports. Wall Street was set to evaluate a significant number of reports from major financial companies, with shares of JPMorgan and Wells Fargo rising by 1.5% and 3%, respectively.
Futures tied to the Dow Jones Industrial Average increased by 0.05%, while futures for the S&P 500 and Nasdaq 100 rose by 0.07% and 0.17%, respectively.
Pivot point: 33870
US Crude Oil (USOUSD)
On Monday, October 16, oil prices experienced a decline, following a relatively recent increase due to concerns arising from the conflict between Israel and Hamas. Investors are keeping a close watch on the potential repercussions of this conflict for other countries, as it has the potential to drive prices higher and create new challenges for the global economy.
Brent crude futures dropped by 34 cents, or 0.4%, to reach $90.55 per barrel, while West Texas Intermediate (WTI) crude futures saw a decline of 41 cents, equivalent to 0.5%, bringing the price down to $87.28 per barrel.
Pivot Point: 86.25
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