This Week
Top US and Chinese officials met over the weekend and reported progress on a potential trade deal ahead of President Trump’s scheduled meeting with President Xi of China on Thursday, bolstering positive sentiment early in the week. Wednesday’s Fed interest rate decision will be the most closely watched economic event of the week. The Fed is expected to cut rates by 25 basis points to 4%. The earnings season will see its most important week with Microsoft, Facebook, Amazon, Apple and Google all posting results.
Stocks
BEYOND MEAT
Beyond Meat’s price skyrocketed 130%, with the stock jumping to a 14 month high before paring some gains before Friday’s close. The week began with news that a tender offer worth $1.1 billion of the company’s convertible debt. The news inspired a wave of buying, fueled by meme stock investors amid investor enthusiasm on social media platforms. The company has faced challenges this year with increasing competition from rivals and traditional meat producers who have started their own plant based lines. BM recently announced expansion of its product range in Walmart and traders will hope to hear more positive news when the company posts its earnings on November 4th.
AMAZON
Amazon’s stock price jumped 5.8%, rising to a two week high on Friday. Released sales numbers from October’s Prime Big Deal Days were solid while the company has been aggressively expanding its AI and cloud services investing. The company has stated it will invest $100 billion in AI related infrastructure this year. Last week’s gains came amid news that institutional investors were shopping for bargains, suggesting that Amazon was a potential target ahead of its earnings which will be released on October 31st.
Commodities
Crude Oil
Crude oil prices surged 7.9% after new US sanctions were placed on Russian oil majors Lukoil and Rosneft, increasing concerns about tightening global supply. The EU also implemented their latest round of sanctions against Russian energy including tightening measures against Russia’s ‘ghost’ fleet of oil tankers. Reports also suggested that Indian refiners may reduce importing Russian oil. US Inventories fell last week, suggesting US oil demand is rising for the first time this month.
Gold
Gold prices fell 2.95% as traders booked profits following months of gains, which has seen the precious metal hitting repeated all time highs. Easing US – China trade tensions amid confirmation of the meeting between President Xi and President Trump at the end of the week also factored in to gold’s price movements. Lower than expected inflation data on Friday pared some of the losses from earlier in the week.
Wheat
Wheat prices climbed 1.4% to climb to a near three week high midweek. Recent weather disruptions in Key wheat producers such as the US and Europe have caused harvest delays amid diminishing crop quality. Exporters such as Russia and Argentina face logistical problems and export restrictions limiting what supply. China and other Asian nations have also increased demand for what in recent weeks.
USD/CAD
The USD/CAD declined 0.15% in a volatile week for the currency pair amid challenging geopolitical and economic circumstances. President Trump suspended trade negotiations with Canada following the broadcasting of an anti-tariff advert in Ontario. Over the weekend Trump announced an additional 10% tariffs on many Canadian imports, suggesting further volatility for the pair. Lower US inflation data and the ongoing shutdown pressured the greenback as the week ended. The Fed and the Bank of Canada are set to decide on interest rates on Wednesday with markets expecting a 25 basis point cut for both.
Recap
Last week the S&P 500 was up 2.0%, the Nasdaq climbed 1.9% and the Dow Jones advanced 2.0%.
US stock indices continued rising in a week that ended with delayed US CPI Inflation data coming in slightly lower than expected at 3%, spurring optimism that the Fed was on track to cut interest rates this month, boosting stock prices. The third quarter earnings season ramped up last week with most companies like Intel posting positive results, while Tesla reported mixed earnings. Midweek the US announced oil sanctions on Russian majors Lukoil and Rosneft, boosting black gold. The government shutdown continues.
Crude oil prices turned sharply higher to hit a two week high while Natural Gas prices tested an almost three week peak. Gold and silver prices fell on profit taking. Platinum and Palladium prices declined slightly, as mixed messages from the White House kept trade tensions alive.