October Daily Review - 07/10

 

1. U.S. stocks opened higher on Wednesday as crude oil prices rose for the fourth day in a row, with Brent crude on track to post its best 4-day run in more than a month.

The Dow Jones industrial average (DJI) rose 82.71 points, or 0.49 percent, to 16,872.9. The S&P 500 (SPX) gained 9.96 points, or 0.5 percent, to 1,989.88 and the Nasdaq composite (IXIC) added 25.80 points, or 0.54 percent, to 4,774.16.

2. Volkswagen's supervisory board was holding crisis talks on Wednesday, facing deadlines from German regulators and U.S lawmakers to explain its rigging of diesel emissions tests and what it is doing to tackle the scandal.

The 20-person board gathered at the German carmaker's headquarters in Wolfsburg at around 9 a.m. (0700 GMT). Sources close to the matter said talks were likely to last for hours.

3. A recovery in oil prices spread to stock markets and emerging market currencies on Wednesday, with the prospect of more support from the world's central banks offsetting more disappointing economic data.

After a dismal summer quarter in which global equities fell the most since 2011, traders say fund managers were ready to pile back in, hoping the recent market reversal was a hiccup rather than the end of a six-year bull market.

4. Gold prices were trading close to two-week highs on Wednesday as expectations that the Federal Reserve may hold off raising interest rates until next year continued to weigh on the dollar.

U.S. gold futures for December delivery were last at $1,147.4 an ounce, after rising to highs of $1,152.7 earlier.

5. The U.S. dollar dropped to two-month lows against its Canadian counterpart on Wednesday, despite weak Canadian data as demand for the greenback remained under pressure after investors pushed back expectations for a U.S. rate hike until 2016.

USD/CAD hit 1.2987 during early U.S. trade, the pair's lowest since August 13; the pair subsequently consolidated at 1.3002, sliding 0.24%.

 

  

 

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