Hello Traders, welcome to the last trading week of October. We’re kicking off Monday with some early surprises: Sunday’s elections in Japan saw the LDP lose its majority in the lower house for the first time since 2009. This result is heavily impacting the yen, which is weakening across the board. Pairs involving the yen are climbing higher as investors react swiftly to this political shift.
From a fundamental standpoint, today’s calendar is rather quiet. On the earnings front, we have a relatively low-key start, with Waste Management and Ford Motor set to report. However, Tuesday will bring a bigger wave of earnings, with major U.S. names like Alphabet, Visa, AMD, McDonald's, and Pfizer set to release their reports, which could bring significant movement to U.S. indices.
Looking at the charts, there are two major themes to start the week: a significant yen weakness and a drop in oil prices. On the currency side, the yen is the weakest currency today, followed closely by the Swiss franc. Leading the gains are the Canadian dollar, British pound, and euro, all showing early strength.
As for commodities, oil has taken a sharp hit, with both Brent and WTI down more than 4% so far. Precious metals are also starting the week on the back foot, though we’re seeing a tentative attempt at a bullish push as the European session progresses.
Finally, on the indices front, futures have opened on a positive note, with optimism spreading across Asia, Europe, and America. Futures point to a green start across the board, setting a positive tone for Monday. Good luck in trading this week!