High Asian shares and marching oil prices - A sign of economic stability

Asian shares were flying high as most of the Asian economies are showing signs of stability in October. Growth of 0.26% was seen in MSCI's broadest index of Asia-Pacific shares outside Japan. The Australian shares managed to make a gain of 0.47% with the support of miners while the South Korean shares jumped by about 0.5%. Now, the property sector is also growing as people are coming back to their plans of investing in real estate. Several companies are likely to publish quarterly results such as HSBC, Facebook (NASDAQ: FB), Microsoft (NASDAQ: MSFT), Deutsche Bank (DE: DBKGn), China Construction Bank (OTC: CICHF), Apple (NASDAQ: AAPL) and many more. As these heavy weights will publish the report, things will become clear.

The investors closely watch all developments and monitor the status of the report. It was a good sign that the S&P 500 and the Dow Jones Industrial Average managed to touch record marks in the last week. It was due to the strong start of the US earning season. Many investors turn towards safe-haven currencies during the risk-friendly mood. The Canadian and Aussie dollar benefit from such an environment. The investors and traders are waiting for the third-quarter GDP figures of the United States before taking any decisions. The US policymakers understand that the decisions should be made with great precaution. The market is trying to stabilize itself before the support from the government on the financial front is pulled back. The US central bank and government are supporting the economy in various ways. The US benchmark yields are constantly rising. The yields on 10-year Treasury notes touched a five-month high mark of 1.7064%.

The rise of oil prices due to tight supply

The oil prices continue to rise due to tight supply and burgeoning worldwide demand. Brent crude made a gain of 0.88% and stands at $86.28 a barrel. The US crude is standing at $84.69 a barrel after rising 1.11% which is its highest point in seven months. The spot gold made a gain of 0.3% to $1,797 an ounce. As most economies are recovering from the pandemic-induced slumps, the demand for oil is rising exponentially. The US West Texas Intermediate (WTI) crude futures made a gain of 0.6% or 48 cents. It was standing at $84.24 a barrel. There are other contributing factors for the rising cost of oil. The shortage of gas and coal in China and Europe is a key reason. Many people are switching to diesel and fuel oil for generating power.

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