The S&P 500 hit its all-time high yesterday - 22.10.2021

On Thursday, the US dollar index rose slightly on good macroeconomic data. They confirm the recovery of the American economy after the Covid-19 epidemic. Initial Jobless Claims (the number of new unemployed) for the week in the United States fell to 290 thousand people. This is a 19 month low. Existing Home Sales rose to an 8-month high in September. An additional positive was the opinion of Fed Governor Christopher Waller on the need to reduce the Federal Reserve balance over the next two years. According to him, it now stands at $ 8 trillion. 10-year U.S. Yield Growth Treasury to the maximum since April of this year (1.7% per annum) also supported the dollar rate. An important factor in yesterday's strengthening of the American currency was the downward correction of bitcoin quotes by 6% after the renewal of the historical maximum of $ 67,000. The daily turnover of trading in cryptocurrencies is now about $ 100 billion. This is already comparable to the volume of trading in the global oil market. Bitcoin is up slightly this morning and the US Dollar Index is down. Bitcoin's rise in price could have been facilitated by the message of the Walmart trading network (shares rose + 0.6%) about plans to install 200 bitcoin ATMs in their stores and then increase their number to 8000. Earlier, the Mastercard payment system (-0.2%) announced that it was going to start operations with cryptocurrencies.

American stock indices rose yesterday. The S&P 500 has renewed its all-time high. This was facilitated by good macroeconomic data, as well as positive reporting by the manufacturer of computer processors Intel (+ 1.1%). Investors decided that the global chip shortage could end soon. This triggered a 3.3% rise in the electric vehicle maker Tesla. Now the shares of this company are trading with relatively high fundamentals of P / S = 20 and P / E = 450. Market participants expect Tesla sales to continue to grow rapidly. In the third quarter, the company's revenue increased by 57% compared to the same period last year, and net profit - 4.8 times. This morning, futures for US stock indexes fell. Social network Trump Media and Technology Group, associated with former US President Donald Trump, is about to acquire Digital World Acquisition (its shares soared 4 times). Investors believe Donald Trump wants to run in the US presidential elections in 2024 and is developing his new social network for this. Against this background, quotes of other social networks Facebook and Twitter fell by almost 5%, since they had previously banned Donald Trump. Today in the US, the preliminary Markit Manufacturing PMI (indicator of business activity in the industry) for October will be released, as well as a speech by Fed Chairman Jerome Powell. Quarterly financials for Honeywell, American Express, Schlumberger and others are due in the US today.

Yesterday, world oil prices corrected downward after a 2-day rise. This was facilitated by the announcement of the introduction of quarantine in Russia due to the outbreak of the coronavirus epidemic. Investors fear that the quarantine could spread to neighboring countries in eastern Europe and Asia. In addition, Russia and Iraq reported that they can increase oil production in order to provide economic assistance to importing countries and reduce world prices. The next OPEC + meeting will take place on November 4. It will discuss oil production in December. Another important negative factor for oil was the drop in coal prices in China by 20%. The China's National Development and Reform Commission earlier announced measures to stabilize the domestic coal market. Copper quotes increased today on the back of a coupon on bonds from China's largest construction company, China Evergrande Group. Copper is actively used in construction. In addition, the International Copper Study Group (ICSG) reported a global copper deficit for 7 months of 2021 in the amount of 138 thousand tons.