Stocks And Cryptos Dipped In Red As Market Awaited Cpi Data And U.S Midterm Elections. China’s Strengthened Pandemic Policy Drowned Out Commodities But Boosted Dollar.

Updated time: 10 Nov, 2022, 13:58 (UTC+04:00)

Stocks:

After major indices ended red last week trying to digest the 75 bps rate hike, Wall Street futures also dipped. Dow Jones futures and S&P 500 futures fell 0.6%-0.7% while Nasdaq futures dropped nearly 1%. The main focuses of the week would be fresh CPI data for October, congressional midterm elections as well as speeches from FOMC members and the Fed for closer hints. Headline inflation was anticipated to rise 0.7% and core inflation up 0.5%.

Stocks And Cryptos Dipped In Red As Market Awaited Cpi Data And U.S Midterm Elections

Meanwhile Asian shares witnessed green flags with 0.3% gains for major components. Investors who focus on Asian stocks would pay close attention to Chinese trade data for a guide on global demand.

Commodities:

Oil prices significantly dropped as China continued strengthening its commitment on zero-Covid policy, cooling bets on oil demand recovery at the world’s top crude importer. Brent crude futures lost $1.58 to $96.99 and U.S WTI crude was down $1.77 to $90.84 per barrel. Weak economic backdrop in developed economies and the strong dollar pressured overall price at large.

Gold prices reversed last week’s gains as concerns over slowing economic growth and the firm dollar. Spot gold slipped 0.4% to $1,674.12 while gold futures lost 0.5% to $1,677.30 an ounce. Both instruments rallied sharply in Friday's session after nonfarm payrolls results were upbeat.  

Currencies:

Dollar climbed as China stuck to its pandemic policy, sending its index up 0.6% against other majors. Unsurprisingly offshore yuan lost 0.9% against the greenback although on-shore currency soared thanks to expectation that China’s economy would open. Yen stayed low at 147.23 while the euro eased 0.6% to $0.9899. The Aussie lost ground with 0.8% down at $0.6414 after jumping 3% on Friday. 

Cryptocurrencies:

Crypto slightly fell following huge losses in the FTX exchange's FTT token and Solana's SOL. Bitcoin was luckily safe in the $21,000 zone after hitting a week-high over its key levels on price charts. Ethereum lost more than 2% and now stood at $1,582.

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