Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations
08:40
Trading in Tokyo closed with an increase of 1.8%, which was led by the financial corporation Softbank which took off by 6.2%. Other notable gains were recorded by automobile stocks, including Toyota, Mitsubishi and Nissan. Until Israel returns to daylight saving time, trading in Tokyo will be closed at 8:00 Israel time since there are no clock changes there during the year.
07:55
The main stock indices in Asia are trading in a positive trend. The Nikkei index in Tokyo rises by 1.6% with the Japanese Softbank Corporation standing out with a sharp increase of 6.2%, in Hong Kong the Hang Seng index jumps by 0.5% when the gains of the technology companies are offset by sharp declines in the real estate stocks – including Longfor which plunges by 19 % and Country Garden which retreated by 7% in a huge turnover.In Shenzhen, Sydney and Seoul there are increases.
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In China, a number of weak macro data were published early in the morning, and in response the Shanghai index traded down 0.7%, while the trend in the other Asian stock exchanges, as mentioned, is positive. The PMI for the manufacturing sector fell to 49.2 points in October, when forecasts were for 50 points (after a reading of 50.1 in September). The managers’ index in the non-productive sector fell to 48.7 points, also here below the forecasts that estimated a reading of 50.2 points, (following on to 50.6 in September).
On Wall Street, futures are steady on the last day of October, while the Dow Jones is poised to record its best month since 1976 with a jump of about 14% year to date. The S&P 500 jumped 8.8% since the beginning of the month and the Nasdaq rose 5%. Trading will take place between 15:30 and 22:00 Israel time, as the US will only switch to winter time next week.
US government bond yields are rising slightly this morning. The ten-year bond yield advances to 4.03% and the two-year bond yield rises to 4.44%. In foreign exchange, the dollar loses 0.4% and its rate falls to NIS 3.53, the euro retreats by 0.3% to NIS 3.51, while the pound climbs by -0.3% and her hair increases to NIS 4.09.
At 12:00 Israel time, the consumer price index in the Eurozone will be published, a preliminary figure for October, when according to the forecast, inflation is expected to rise to an annual rate of 10.2% compared to an increase of 9.9% in September. The bloc’s growth data will also be published, with the expectation being a quarterly increase of 1% in the consolidated GDP of the bloc’s countries.
This Wednesday, the Federal Reserve is expected to raise the interest rate in the US by another 75 basis points for the fourth time in a row, at the end of a two-day meeting of the Open Market Committee (FOMC). The investment bank Goldman Sachs predicts that the interest rate will soon reach a peak of 5%. Chief Economist Jan Tzius said who raised the forecasts of interest rate increases by another 25 basis points, and now expects a 50 point increase in December, a 25 point increase in February and another 25 points in March.
In the meantime, the American report season continues when AMD, Uber and AirBNB reports (tomorrow), Qualcomm and Robin Hood on Wednesday, Royal Caribbean, Moderna, PayPal and Coinbase on Thursday are expected to be published this week. The Israeli women are also joining the flood of reports this week. Audiocodes, Infinia and Liveperson will release on Wednesday and Teva, Ormat, Nova, Cyberark and Sapiens on Thursday.
In the commodity market, crude oil contracts are down slightly this morning. American oil is trading around $87.5 per barrel and Brent oil contracts around $95.1 per barrel. Gold traded steadily around $1,644 per ounce. In the crypto market, trading is in a negative trend. Bitcoin drops 1% to $20.5 thousand and Ethereum sheds 2% and trades around $1,584.