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Daily wrap up: corporate results dominate trading, and the US dollar gave up its gains

19 Oct 2021 05:05 PM

The US stock indices rose with the beginning of the US session, in light of the increase in the risk appetite among investors as a result of the strong earnings of some companies, and in the wake of positive results for major banks during Q3 of the year.

S&P 500 Index has become close to its reach highs recorded in September, amid investor optimism about the influx of more strong business results, and among the companies that announced their profits today is Johnson & Johnson, which its shares rose by about 1.8% after raising its expectations for its profits in 2021. It is scheduled to announce Netflix earnings after the close today.

Tomorrow, the results of the electric car giant Tesla will be announced, as investors will monitor the company’s performance in China, amid expectations that earnings per share will reach approximately $1.52, which is 100% growth during the same period last year, the share is currently trading near the highest levels since the beginning of 2021.

The US dollar fell as US bond yields stopped rising, and on the other hand, some other currencies such as the British pound rose, supported by expectations that interest rates will be raised sooner than expected. The dollar index, which measures the currency's performance against a basket of currencies, moved away from its highest level in a year, to trade below the level of 94. Also, the New Zealand dollar rose amid expectations of raising interest rates.

On the other hand, gold benefited from the US dollar's declines, reaching levels of $1,785 an ounce, before giving up some of those gains and trading below $1,775 levels.

Also, crude oil is still benefiting from the continuing crisis of natural gas, electricity, and coal supplies around the world. WTI is currently trading around the levels of $82 a barrel after stabilized higher than support level at $81.23, and gains are likely to continue towards the levels of 84/ $85 a barrel, and trading above the $83 levels will be required to prove the extension of the rally, but any trading below the $80 levels would push prices down towards the $76 levels.

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