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Bitcoin dropped to a fresh low 2022


US stocks advanced higher on Tuesday, extending their previous rally and rose for the third day as investors awaited midterm election results and monitored the selloff in crypto markets.

Bitcoin plummeted to a fresh 2022 low at $18,355 amid the collapse of FTX and Binance’s decision to save the crypto exchange. The mini-crash in Bitcoin has weighed on the stock market and caused a sharp drop as investors don’t like to see any disruptions in any risk asset.

On top of that, the results of the US mid-term elections would take a couple of days, which could have long-lasting effects on the American dollar. A history of robust performance following midterm results has provided support to the outlook for equity markets.

In the Eurozone, the euro cheers the upbeat Eurozone data despite some discouraging news, as the European Commission said there is no way to create a gas price cap as requested by EU leaders at the end of October. Eurozone’s Retail Sales rose by 0.4% MoM in September.

The benchmarks, S&P 500 and Dow Jones Industrial Average both climbed higher on Tuesday as the S&P 500 closed higher with investors eyeing potential gridlock from midterm election results ahead of the release of US inflation figures. The S&P 500 was up 0.6% daily and the Dow Jones Industrial Average also advanced higher with a 1.0% gain for the day.

Ten out of eleven sectors in the S&P 500 stayed in positive territory as the Materials and Information Technology sectors are the best performing among all groups, rising 1.68% and 0.92%, respectively. The Nasdaq 100 meanwhile climbed higher with a 0.8% gain on Tuesday and the MSCI World index was up 0.8% for the day.

Main Pairs Movement

The US dollar declined lower on Tuesday, remaining under bearish pressure and plummeted to fresh monthly lows against most of its major rivals during the US trading session as the markets await the outcome of the US mid-term elections. The positive tone of US equities and easing government bond yields both exerted bearish pressure on the greenback amid the optimism surrounding US Mid-Term Elections. The important election results would take a couple of days.

GBP/USD edged higher on Tuesday with a 0.26% gain after the cable retreated from a daily high and dropped to the 1.1520 area amid risk-on market sentiment. On the UK front, Bank of England Chief Economist Huw Pill said the central bank has more to do with tightening the monetary policy. Meanwhile, EUR/USD holds on to its gains ahead of the US close and climbed above the 1.0070 mark amid the market’s optimism surrounding the US election outcome. The pair was up almost 0.54% for the day.

Gold surged with a 2.20% gain for the day after reaching levels that were last seen in September around the $1,714 mark during the late US trading session, as the weaker US dollar across the board helped the precious metal to find demand. Meanwhile, WTI Oil was sharply down with a 3.14% loss for the day amid concerns over China’s oil demand. Crude oil prices have retreated to the $88.50 area.

Economic Data

CurrencyDataTime (GMT + 8)Forecast
USDCrude Oil Inventories23:301.360M