S&P500
US GDP grew less than expected.
Major US indices rose steadily by Thursday's close, despite a weak Q3 GDP report. The Dow added 0.7%, the NASDAQ rose 1.4% and the S&P500 gained 1%.
Asian markets rose at the end of the week. Japanese stock indices showed strong growth of +0.1%. Chinese stock indices added 0.4%.
Oil fell $2 yesterday on a weak US GDP report. However, by Friday morning the fall had fully recovered. Brent is in a range of $82.50 to $86.00.
Yesterday gas prices in Europe fell by 13%, to $900, following Putin's announcement that Gazprom would deliver more gas to Europe to ease tension.
The number of coronavirus cases worldwide keeps rising. There were 480,000 new cases around the world.
The S&P 500 is trading at 4,596. It remains in the range of 4,560-4,620. Yesterday the S&P500 posted a new high for the year and a new all-time high. The GDP report showed growth in Q3 by 2% year-on-year. The GDP inflation rate rose by 5.7%. Inflation remains uncomfortably high for the Fed. The PCE index will be released today. It is expected to rise between 0.3 and 0.4% for the month. This will be the last inflation report before the Fed's monetary policy decision, which is due on November 3.
Yesterday, Joe Biden pitched a revised $1.75 trillion climate change and social safety plan. The White House expressed confidence that it could also pass the House. The White House said the plan had the support of all 50 Democrats in the evenly divided Senate and expressed confidence that it could also be passed by the House.
Ford and Caterpillar shares rose to +9% yesterday on expectations of strong reports from Apple and Amazon.
The shortage of semiconductor chips continues. Buyers are still facing order and delivery problems. This is tangibly slowing growth of the economy.
The US dollar index is trading at 93.40. It is trading in the range of 93.10-93.70. The index fell sharply on Thursday after a weak US GDP report and a sharp rise in EURUSD from 1.1570 to 1.1670. The market probably saw a weak GDP report as a signal that the Fed will take a softer stance on monetary policy amid a slowdown in global economic growth.
The USD/CAD pair is trading at 1.2360. It remains in the range of 1.2300-1.2420. The pair is within the range. The markets expect oil or the US dollar momentum.
Traders are waiting for a new US inflation report. The US market has technically given a new upward signal, but prices are again very high and there is little potential.
