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Investors took profits, gold prices fell more than 5% and broke through 4100, and oil prices rebounded from five-month lows
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Hello everyone, today XM Forex will bring you "[XM Foreign Exchange Market www.xmh100.commentary]: Investors took profits, gold prices fell more than 5% and broke through 4100, and oil prices rebounded from five-month lows." Hope this helps you! The original content is as follows:
On Wednesday (October 22, Beijing time), spot gold was trading around US$4,115 per ounce. The price of gold fell by more than 5% on Tuesday, the largest single-day decline in five years. Regarding the U.S. government shutdown Expectations that a trade deal will end and that a trade deal will be reached have led investors to take profits; U.S. crude oil traded around $57.58 per barrel. Oil prices rose on Tuesday as investors reassessed expectations of an impending supply glut and sought clear direction in the trade dispute.
Stock Market
U.S. stocks closed mixed on Tuesday, with the Dow leading the gains as a series of eye-catching earnings reports attracted investors to the industrial and capital goods sectors.
The S&P 500 index was basically flat at the close, while weakness in growth and chip stocks dragged down the Nasdaq, which is dominated by technology stocks, to close slightly lower.
Michael Green, chief strategist of Simplify Asset Management, said that the market is currently in a state of hesitation, and no one has a particularly strong opinion on anything. This is also reflected in the weakening of the market's reaction to earnings surprises.
The third-quarter earnings season has entered its peak period, with corporate giants such as General Motors, GE Aerospace, 3M and Coca-Cola generally releasing optimistic financial reports. But with major U.S. stock indexes hovering near all-time highs and valuations on the high side, bright earnings reports alone may not be enough to support investors' risk appetite.
Green said: "Corporate profits were better than expected, and profit margins increased slightly, which suggests that www.xmh100.companies may pass on tariff costs to importers or consumers. However, there is no special signal that the market has a clear direction."
General Motors raised its forecast and eased the expected hit from tariffs. The automaker's shares soared 14.9%.
Coca-Cola shares rose 4.1% after solid consumer demand drove better-than-expected results; diversified manufacturer 3M's shares rose 7.7% after the www.xmh100.company raised its full-year forecast, helped by its High-margin products and an emphasis on cost control.
Aerospace and defense www.xmh100.companies Lockheed Martin, Northrop Grumman and RTX all raised their forecasts, benefiting from strong demand for war machinery.
Netflix fell 5.8% in after-hours trading. Streaming www.xmh100.companies failed to meet profit targets.
So far, 78 www.xmh100.companies in the S&P 500 Index have announced financial reports. Among them, 87% of the www.xmh100.company's performance exceeded Wall Street expectations. Analysts now expect headline S&P 500 earnings to rise 9.2% year over year in the third quarter, according to London Stock Exchange Group (LSEG), which is stronger than the 8.8% forecast on Oct. 1.
This week, Tesla, IBM, Procter & Gamble and Intel will also release high-profile financial reports.
The Dow Jones Industrial Average rose 0.47% to 46924.74 points; the S&P 500 Index rose 0.22 points to 6735.35 points; the Nasdaq Index fell 0.16% to 22 953.67 points.
Among the 11 major S&P 500 sectors, consumer discretionary and industrials led gains, while utilities posted the largest declines.
Warner Bros. Discovery shares surged 11% after the www.xmh100.company announced it was considering a full sale and said multiple potential buyers had expressed interest, becoming the focus of the latest wave of media industry restructuring. Later that day, the board of directors rejected the acquisition proposal proposed by Paramount Skydance.
The government shutdown has entered its third week. The lack of official data has caused investors, economists and policymakers to fall into an information blind spot, and has also made the Federal Reserve's decision-making, which is highly dependent on data, more www.xmh100.complicated.
Even so, according to a survey of economists, The Fed will cut its key policy rate two more times by 25 basis points before the end of the year. U.S. President Trump also struck a positive tone on trade issues.
Gold Market
Gold prices suffered their biggest one-day drop in five years on Tuesday after investors took profits after a record rise driven by expectations of a U.S. interest rate cut and demand for safe havens.
Spot gold fell 5.5% to a one-week low of $4,115.26 per ounce, the largest drop since August 2020. U.S. gold futures for December delivery closed down 5.7% at $4,109.10 an ounce.
Tai Wong, an independent metal trader, said that gold prices are still being bought on dips, but volatility has surged at highs in the past week, sending a cautious signal that may encourage gold prices to rise.This encourages at least short-term profit taking.
KitcoMetals senior analyst Jim Wyckoff said in a report that the overall market risk appetite improved at the beginning of this week, which was negative for safe-haven metals.
In a report, Citi analysts said that expectations that the U.S. government shutdown will end and a trade agreement will be reached may cause gold prices to consolidate in the next two to three weeks.
Spot silver fell 7.6% to $48.49 an ounce. Wong said that silver prices fell sharply on Tuesday, dragging down the overall performance of precious metals. It currently appears that the short-term top of silver prices is at US$54, and market sentiment is swinging below US$50. As long as gold prices remain relatively strong, silver prices may maintain a sharply volatile trend.
In other precious metals, platinum fell 5.9% to $1,541.85 per ounce; palladium fell 5.3% to $1,417.25 per ounce.
Oil Market
Oil prices ended higher on Tuesday, rebounding from a five-month low hit in the previous session, as investors reassessed expectations of an impending supply glut and sought clear direction from the trade dispute.
Brent crude oil futures closed up 0.5% at $61.32 a barrel; U.S. crude oil futures for November delivery expired at settlement on Tuesday and closed up 0.5% at $57.82.
Both crude oil futures fell to their lowest levels since early May on Monday as expectations for a supply glut grew as U.S. oil production hit a record high and OPEC and its allies decided to press ahead with plans to increase supply.
However, Bjarne Schieldrop, chief www.xmh100.commodities analyst at SEB, said relatively low U.S. crude and distillate fuel inventories are helping to offset some of the pressure on benchmark oil futures.
The trade dispute has also increased expectations that slowing global economic growth will curb oil demand. However, both sides are trying to downplay the differences.
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