Important economic and corporate indicators are due in the US today - 29.10.2020

The US dollar index rose markedly on Wednesday. This was mainly contributed by the weakening of the euro amid the quarantine in France and Germany. Also, the American currency was supported by the contraction of the negative trade balance in the USA in September. The ECB will host a regular meeting today. Investors do not expect a rate cut, but they fear any measures to ease the ECB's monetary policy in order to support the European economy amid the new quarantine. The Bank of Canada meeting took place yesterday. Its representatives said that the current low rates (0.25%) will remain until 2023. In addition, currency issue will continue for an indefinite period of time in the amount of 5 billion Canadian dollars per week, set to the Canadian bonds buyout. This contributed to the yesterday's weakening of the Canadian dollar. Today's meeting of the Bank of Japan did not affect the Japanese yen rate. It continues to strengthen as in Japan there are few coronavirus patients, and investors view the yen as a safe haven.

On Wednesday, US stock indexes fell sharply. The daily drop of the S&P 500 was the highest in nearly 4 months. The number of people with Covid-19 is also on the rise in the United States. On Tuesday there were 74 thousand of infected people, which is almost 2 times more than in September.  United States lead the world in Covid-19 deaths (227 thousand people). All this increases the risks of new lockdowns and weakens stock prices. European stock indices and futures for US indices are growing actively this morning. The reports of the American corporations such as Boeing, General Electric and UPS, as well as the European Royal Dutch Shell and ASM were positive. Today, investors are awaiting  important economic data on US GDP for the 3rd quarter and unemployment over the week. Their outlook is positive. Today's Q3 reporting of such large companies as Amazon, Facebook, Google, Apple, Starbucks and others may be even more significant. Futures for US stock indices are now advancing.

World oil quotes are down today for the 2nd day in a row. Investors fear a reduction in global demand due to lockdowns in France and Germany, as well as the spread of quarantine measures to other countries. According to the official data of the EIA, US oil reserves increased by 4.3 million barrels for the week, which is more than expected. The meteorological forecasts of the hurricane Zeta weakening were another negative factor for the market. This could help restore oil production in the Gulf of Mexico.