1. Tesla Up 12.7% But Here’s Why The Stock May Tumble…
Pegged by many as a high-risk, high-reward stock, Tesla Motors, Inc. (TSLA) is known for its extreme volatility and ranks among the most interesting public companies in the world. The stock finished Monday in a bull run, closing 12.72% higher but yesterday’s rally may be cut short when the stock reopens for trading later today. Tesla CEO Elon Musk said on Tuesday that “many” interior options for the Model S sedan and Model X SUV will no longer be available after November 1 to simplify the production process. The news could disappoint Tesla enthusiasts and lessen demand for the newly released models which could in turn have a grave impact on the company’s share price. It is also important to note that the company will be releasing its Q3 earnings data and hold an official earnings call and a live Q&A session at 3:30 p.m. Pacific Time. The event will have a major impact on TSLA which is expected to remain highly volatile and sensitive to any significant developments.*
2. Planning To Trade The BoC Monetary Policy Decision?
Today’s main market moving events are the monetary policy decision from the Bank of Canada, crude oil inventories and series of manufacturing & services PMI figure from the Eurozone. The latest BoC Interest Rate Decision is expected to have a significant impact on CAD pairs. It should be noted that the BoC has been one of the few central banks that have been able to raise interest rates despite the global crises and trade war. The Bank of Canada has increased rates four times since 2017 and is expected to deliver another 0.25% rate hike today. The successful conclusion to the NAFTA renegotiation earlier in the month has provided some support for the Canadian dollar and it is expected to encourage BoC members to raise rates this afternoon (14:00 GMT). A surprise no-change in rates can cause the USDCAD to move higher.**
BDSwiss is offering a free live trading webinar at the time of the BoC Interest Rate Announcement. Our professional traders will analyse the markets and place their positions live as the BoC release unravels. You can register for today’s webinar here.
3. Geopolitical Tensions Continue To Shock The Markets
The Dow dropped more than 500 points before erasing most of its losses in early morning hours on Tuesday. US stocks fell sharply this morning as geopolitical tensions and the prospect of slowing growth rattled investors. Shares closed with modest losses.as macro issues including higher interest rates, trade frictions, and pockets of softness in the global economy, weighed on the markets. In a bearish domino effect, European stocks dropped to their lowest level in two years in early trading as Italy’s plans to sharply increase public spending continued to rattle the Euro Zone. In Brussels, officials have been pushing back against the populist government in Rome, calling the budget an unprecedented breach of European Union fiscal rules.***
You can find and trade all of the above mentioned assets on BDSwiss Forex/CFD platforms.
*Source: Business Insider, Oct. 24, 2018 6:25 AM ET
**Source: Reuters, Oct. 24, 2018, 4:16 AM ET
***Source: FX Leaders, Oct. 24, 2018, 3:03 AM ET