In the USA, the company reporting season is starting, which will show the current state of the economy. One of the most important will be the reports of major banks, as they play a fairly large role in shaping the economy.
The first reports from the banks showed that they feel good. Investors have made sure that the economy will withstand the blow, even if the government aid package is not approved. The chances of a compromise on the package are decreasing day by day, but investors are hoping for $2 trillion in aid if the Democrats win the election.
On Wednesday, the markets were traded in a mixed way. The S&P500 index at the opening showed good growth, but after a few hours it began to fall. Investors probably recorded profits on company reports.
The DAX index is trying to find support on the second day around 12960. After all, the growing number of COVID-19 cases is putting some pressure on risk assets.
No progress has been made on the substance of the EU-UK negotiations. As a result of the EU Council meeting, the preparation of a contingency plan for the failure of negotiations will be intensified. Boris Johnson said that he is ready to continue negotiations so that a certain consensus can be reached. The GBP/USD pair has already hung on the sidewalk for the fourth trading session and is waiting for at least some signal for further movement. On Wednesday the pound traded near the key level of 1.3000.
The oil market is again in the green zone. The growth factor is OPEC’s report that the oil and gas industry is recovering faster than previously forecast. So far, OPEC member countries have fully complied with previous agreements to reduce oil production. The second factor was the growth in oil imports into China, which increased by more than 2% in September. If this upward trend in oil product consumption continues, we can expect the price of WTI to rise above $45 per barrel in the near future. On Wednesday, the price per barrel is up 1.4% to $40.75.
What awaits us today?
02.30 Change in the employment rate in Australia for September
14.30 Number of initial applications for unemployment benefit in the USA
17.00 US crude oil reserves
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