Opening Bell: U.S. Futures Buck Global Downtrend; USD Falls; Treasuries Higher

• US reports 85,317 new COVID-19 cases, the second consecutive daily record
• Additional lockdown measures announced in Europe
• Economic stimulus package unlikely before election

Key Events

US futures, including the Dow, S&P, NASDAQ and Russell 2000, were in the green in pre-New York open trading on Tuesday while European markets wobbled as case numbers of COVID-19 hit new records across US .

Treasury yields are under pressure as investors move into safe-haven bonds and the dollar is also lower.

Global Financial Affairs

Futures on the S&P 500 index pared an advance, but as of the time of writing the contract found support around its opening price, after its underlying gauge suffered the bitcoin transaction , the largest on record.

Bitcoin will have to surpass the $13,300 level to clear out the supply marked by Friday’s shooting star, as the cryptocurrency leader reaches the June 26, 2019 high of $13,764. The largest transaction in history may be indicative of the supply available at this resistance level. The RSI lowered from last Thursday’s 80.00 extreme overbought level, the highest since Aug 1.

Oil seemed to have found its footing after Monday’s second consecutive daily decline but some traders think the price will remain under pressure as the pandemic dents global demand.

Technically, the price neared demand as it fell toward the bottom of its range since Sept. 8. The 200 DMA has become a resistance since the price crossed below it on Sept. 4. It remains to be seen whether the 200 DMA is a stronghold of bulls.

A downside breakout and a continued selloff is more likely after the bearish wedge. The RSI demonstrates that momentum has already done that.

Up Ahead

• The Chinese Communist Party’s Central Committee plenum, which started on Monday continues until Oct. 29.
• Brexit negotiations are ongoing as both sides push to finalize a deal by the middle of November.
• Bank of Japan and the European Central Bank have monetary policy decisions Thursday, followed by briefings from Governor Kuroda and President Lagarde.
• The first reading of US 3Q GDP on Thursday is anticipated to be the strongest on record following an unprecedented dive in the prior quarter as many businesses were shuttered by coronavirus lockdowns.

Market Moves

Stocks

• The Stoxx Europe 600 Index declined 0.4%.
• Futures on the S&P 500 Index rose 0.1%.
• NASDAQ index futures climbed 0.1%.
• The MSCI Asia Pacific Index dipped 0.2%.

Currencies

• The Dollar Index fell 0.1% to 93.00.
• The British pound dipped 0.1% to $1.3006.
• The Japanese yen strengthened 0.1% to 104.78 per dollar.
• The Turkish lira weakened 0.8% to 8.1476 per dollar.

Bonds

• The yield on 10-year Treasuries climbed less than one basis point to 0.80%.
• Germany’s 10-year yield fell less than one basis point to -0.58%.
• Britain’s 10-year yield increased less than one basis point to 0.277%.
• New Zealand’s 10-year yield fell five basis points to 0.566%.

Commodities

• West Texas Intermediate crude climbed 0.4% to $38.72 a barrel.
• Gold was little changed at $1,902.06 an ounce.
• Corn increased 0.4% to $4.20 a bushel.
• Iron ore gained 0.6% to $110.44 per metric ton.

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Written By: Investing.com