【Top1 Evening】Financial stocks exploded, Earnings season starts with big banks, sell the dollar on Biden Odds, gold face resistance as Trump's stimulus rejected
Fading fiscal stimulus hopes may weigh on gold prices in the near-term. The dollar may tumble to its lows of 2018 on the rising likelihood of Joe Biden winning the U.S. election.

Gold
Gold prices edged lower on Monday, after hitting a three-week high earlier in the session, as the dollar firmed and talks over a new U.S. stimulus package ran into resistance.
Spot gold fell 0.38% to $1921.32 per ounce by 18:00 (GMT+8).
"The dollar index has rebounded slightly, weighing on the precious metal," said Margaret Yang, a strategist with DailyFx, which covers currency, commodity and index trading.
But, "the technical trend has turned bullish in the near term, and very soon it may test the key resistance level of $1,942," she added.
The White House's offer nearly doubles the original proposal from Republicans when talks began in late summer but is about $400 billion less than the $2.2 trillion bill Democrats previously passed, leaving party leaders in Congress on both sides unhappy.
"There is going to be a stimulus coming quickly after the election. The market will look through the fact that we don't have stimulus now but that it is coming and that will be supportive for gold," Stephen Innes, chief global market strategist at Axi.
Elsewhere, by 18:00 (GMT+8) on Tuesday, Silver fell 0.31% to $25.065 per ounce, platinum was down 0.94%% to $881.60 per ounce, while palladium rose 0.01% to $2439.57 per ounce.
Forex
On Monday (October 12), the U.S. dollar index fell to near the 93; at 18:00 (GMT+8), the U.S. dollar index was 93.218.
The euro slipped 0.1% to $1.1817 while the Australian dollar shed 0.3% to $0.7222. The yen was little changed at 105.52 to the dollar.
The dollar may tumble to its lows of 2018 on the rising likelihood of Joe Biden winning the U.S. election and progress on a coronavirus vaccine, according to Goldman Sachs Group Inc.
"The risks are skewed toward dollar weakness, and we see relatively low odds of the most dollar-positive outcome -- a win by Mr. Trump combined with a meaningful vaccine delay," strategists including Zach Pandl wrote in a note Friday. "A 'blue wave' U.S. election and favorable news on the vaccine timeline could return the trade-weighted dollar and DXY index to their 2018 lows."
The strategists also suggest buying the euro, Canadian and Australian dollars against the greenback.
Crude Oil
Oil prices dropped for a second straight session on Monday as U.S. producers began restoring output after Hurricane Delta weakened, while a strike that had affected production in Norway came to an end.
U.S. West Texas Intermediate (WTI) crude was at $40.237 barrel, fell 1.28%, Brent was up to $42.517 a barrel, fell 1.08% by 18:00 (GMT+8) on Monday.
"We had good support for both Brent and West Texas on the back of some supply concerns," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.
Goldman reiterated its bullish 2021 view for both natural gas and oil, saying drivers for higher prices supersede the potential outcomes of the U.S. election.
"The recent gyration in oil prices, rallying on days of higher expected stimulus and weakening dollar, suggest that a Biden election and blue sweep could, in fact, prove a bullish catalyst for oil," the bank said, adding that natural gas prices could rally too.
Headwinds to U.S. oil and gas production would rise further under a Biden administration, with the potential for regulations raising the cost of shale production and reducing recoverable shale resources, Goldman added.
Biden's climate priorities also point to a faster deployment of renewable sources of energy than currently expected, Goldman said, adding such an agenda would require new infrastructure, which alongside a likely large initial fiscal stimulus, would lead to higher oil demand in coming years.
Stocks
Stocks in Asia-Pacific were mixed in Monday trading.
In Japan, the Nikkei 61 fell 27 points or 0.3%, close at 23558.
S&P/ASX 200 up 29 points or 0.5%to close at 6132.
South Korea's Kospi gained 11 points or 0.5%, to 2,403.73.
The weighted index on the Taiwan Stock Exchange (TWSE), or Taiex, rose 68 points, or 0.5%, at 12955.
On Monday, the banking stocks exploded in the Hong Kong stock, the Hang Seng Index soared 530 points and closed at 24649 points.
Wall Street's biggest banks report their earnings this week against a backdrop of rising optimism. Since the start of October, bank stocks have risen almost 9%, compared with a 3 % gain in the wider market, a rare respite from the deep underperformance that has dogged the sector during the Covid-19 pandemic.
By 18:00 (GMT+8) on Monday:
SP500 rose 0.40% to 3,490.85;
DJ30rose 0.16% to 28,609.1;
TECH100rose 1.19% to 11,861.75;
China A50rose 2.61% to 15,869.65;
GER30 rose 0.24% to13,085.40;
UK100rose 0.14% to 6011.85;
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