Dow Smashes Records, Oil Slips, and Gold’s Resilience Shines: Here’s What’s Moving Markets this Week ????
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The Dow had a blockbuster week, smashing through a series of record highs, fueled by strong Q3 earnings reports.?
Netflix, in particular, stole the spotlight with stellar earnings and a 35% growth in its ad-supported tier.?
Retail Sales data exceeded expectations, pushing economists to boost their GDP forecasts, and the Atlanta Fed’s estimate for Q3 growth soared to 3.4%.?
Rate cut expectations for November remain solid, with over a 90% chance of a 25 bps reduction, but doubts are creeping in about December.?
Could the economy’s strength delay further rate cuts? Investors are keeping a close eye on the Fed’s next move, as the fear of extended high rates looms over an already frothy market.
Looking ahead: Crude oil ???
Oil's been on a rollercoaster, taking a dip below $70 per barrel as it struggles to find a solid base. Despite bullish signs, including inventory draws and a surge in Chinese economic data, crude couldn’t muster a rally last week.?
Even geopolitical tensions and escalating conflicts in the Middle East haven’t done much to shake the market. Analysts are watching the $70 level closely, as it could provide the launchpad for a recovery.?
The recent stabilising price action is promising, but the momentum is still on the downside, so bulls should stay cautious. Will oil’s fundamentals finally catch a break?
Gold’s breakout potential ??
Gold bulls had a field day last Friday, with the metal surging past $2,700 in early trading.?
This latest rally comes after a brief pullback that seemed to be a healthy consolidation. The MACD is showing lower levels than in late September, giving gold more room to run, but traders need to watch for the risks of a deeper correction.?
While gold has been trending constructively, silver’s struggling to keep pace, unable to secure a solid hold above $32 per ounce.?
For now, gold looks like it's gearing up for another leg higher, but caution is the name of the game.
Economic calendar ???
China remains in the spotlight as the country’s policy makers scramble to prop up their economy with stimulus.?
This week, we’ll see the latest Loan Prime Rate update, which could give markets a glimpse into Beijing’s next move.?
Germany’s Producer Price Index and ifo Business Climate survey are also due, alongside key US reports like the Richmond Manufacturing Index, Existing Home Sales, and Crude Oil Inventories.?
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Thursday brings a slew of Flash PMIs from across Europe, the UK, and the US, followed by Durable Goods and Consumer Sentiment on Friday.
This week’s key earnings ??
The week ahead is packed with big names reporting earnings.?
Here’s what to watch:
Monday
Tuesday
Wednesday
Thursday
Friday
Buckle up - this week’s shaping up to be a wild ride! ???
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