Today's key market insights – 外汇市场
Chris Svorcik
Elite CurrenSea
Stocks rose on Wednesday after Federal Reserve Chair Jerome Powell gave a speech confirming investors’ assumptions that the Federal Reserve is likely to reduce the aggressive rate hikes.
Following Wednesday’s rally, U.S. equities were up for the month of November. The Dow gained 5.7%, the S&P 500 rose 5.4%, and the Nasdaq jumped 4.4%.
Some analysts foresee a soft landing for U.S. stocks in 2023, but l don’t believe there will be a bull run next year.
The current 10 Year U.S. Treasury yield is set at 3.60630%
Kevan Cowan has been appointed as the new chair of the Ontario Securities Commission (OSC).
Cowan is already a board member and key adviser to the Ontario government on securities and capital markets.
He was previously the CEO of the Capital Markets Authority Implementation Organization.
He was also the president of the Toronto Stock Exchange and previously practiced corporate and securities law.
The OSC is an independent government agency that is responsible for enforcing provincial law.
Canada is one of the few countries with no national securities regulator equivalent to the SEC. Instead, each province is responsible for regulating securities exchanges in its own jurisdiction.
European markets finished November in the green after rising on Wednesday.
The Stoxx 600 gained 0.6% on Wednesday and finished the month up 6.1%.
Household goods stocks were up 2.3% to lead markets yesterday. The only sector that finished in the red was chemicals, down 0.2%.
New figures suggest that the EU’s inflation rate for November will be below investors’ expectations.
Stocks in Asia closed higher on Wednesday despite Chinese factory activity falling to its lowest level since April and short of investor expectations.
Australia recorded an annual inflation rate of 6.8% in October, down from 7.3% in September. Housing, food, and transport prices rose the most.
The Purchasing Managers Index in China was at 48 for November, which indicates that the economy contracted.
Stocks in China continue to rise on the news that the country is boosting its vaccine strategy and could shift away from its “Zero Covid” policy.
Oil prices were up on Wednesday amid signs that supply may be tightening while demand grows in China.
Brent crude rose 2.8% and U.S. West Texas Intermediate gained 3.01%.
Crude oil stockpiles in the U.S. declined by 13 million barrels last week, the largest one-week drop since 2019.
U.S. oil output increased by 2.4% in September, to 12.27 million barrels per day.
The U.S. Dollar declined on Wednesday after Jerome Powell indicated that the Federal Reserve will likely ease its rate hikes.
In November, the U.S. Dollar Index had its worst month since 2010.
The index lost 1% on Wednesday to finish the month down 5.10%.
The USD lost 7.39% against the Japanese Yen in November, the steepest decline since December 1998.
Crypto markets rose on Wednesday as Bitcoin was back over $17,000.
So far this year, the crypto market has lost 63% in value.
Bitcoin fell 18% in November and Ether slumped 21%.
Kraken said it plans to cut its workforce by another 30%.
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EUR/USD is consolidating recent gains below 1.0600 in early Europe, as risk flows dominate on China's reopening optimism and weigh heavily on the US Dollar across the board. Eurozone Retail Sales and US ISM Services PMI are next of note.
GBP/USD is trading close to the highest level in five months above 1.2300, as the US Dollar suffers sizeable losses amid a risk-on market profile. China expands its covid shift to Shanghai and Hangzhou, lifting the market mood. US ISM Services PMI eyed.
Gold price is trading close to its best levels in five months above $1,800 at the start of a new week, with risk flows dominating as China expands the covid reopening to Shanghai and Hangzhou. A better risk profile and dovish Fed expectations continue to remain a weight on the USD.
Bitcoin price is struggling to overcome a small hurdle after a fresh start to the week. A closer look reveals that BTC could easily trigger a rally but is unable to do so despite a lack of resistance to the upside. Bitcoin price reveals a noticeable struggle at the November 14 high of $17,188.
The Australian central bank appears to be already getting cold feet when it comes to its own inflation busting strategy, even as the RBNZ hiked rates again by another 75bps at its most recent meeting.
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