Pound reached its highest since early September at 1.2567 against the U.S.
Dollar on November 23. GBP/USD has a good opportunity to hold initial gains
after it settles a bit, with even further strengthening may follow, as U.K.
business indicators point to a growing activity in both manufacturing and
service segments of the national economy.
The S&P Global composite purchasing managers' index (PMI) came out at 50.1
to inch the way through the 50 watershed between growth and decline for the
first time in three months. A similar release showed a 48.
bounced to a $82-83 per barrel area for the Brent crude benchmark due to
reactivated demand ahead of the Organisation of Petroleum Exporting Countries'
energy ministers meeting on November 26. Sources close to Organisation cited by
Reuters were saying that Saudi Arabia, Russia and their allies, a group known
as OPEC+, might consider whether to make some extra oil supply cuts. OPEC+ has
already reduced its total production quotas by 5.16 million bpd (barrels per day)
during the last 12 months.
Wall Street stocks extended its bounce after weak U.S. employment data on November 3, as cooling economy signs cemented the growing market's bets on a longer rate-hike pause. The probability of keeping the Federal Reserve's (Fed) interest rates target range is unchanged for its December 13 meeting and is now exceeding 90%, according to the CME FedWatch tool. It also jumped to 67% for the period ending by March 20, 2024.
U.S. stocks were a little higher by the end of the hectic week. The U.S. Dollar index took a step back. Аll following the spirit of the Federal Reserve's (Fed) chair press conference on Wednesday's night of November 1. The central bank's decision to keep borrowing costs steady was not a surprise, as it was widely expected. However, investors thoroughly examined a statement by the Federal Open Market Committee (FOMC) to be more or less sure that a balanced approach to monetary policy is still here.
U.S. stocks had a bearish start of the week, with the Dow Jones Industrial Average (DJIA) closing at its lowest since March, below 33,000 on October 23. Later, crude prices slowly retreated when humanitarian convoys arrived in Gaza, raising hopes for diplomatic fix-up of the Middle East conflict. December Brent futures dropped to nearly $90 per barrel after two weeks of consecutive jumps on supply disruption worries. Some cheaper fuel pinned down the energy segment, so that stocks outside energy segment edged higher by mid-week.
Stock market become more and more indifferent to the macroeconomic news, as soon as the autumn season of corporate reporting kicks off. The investing community seems already mindful of more than a 90% chance for the Federal Reserve (Fed) to rather keep its interest rate unchanged on November 1 meeting. It seem to be an easy choice after several Fed officials reiterated their common message of closely watching record Treasury yields, which may partially serve as a quasi-substitute for an effective rise of borrowing costs.
The latest horrific outbreak of violence in an age-old Israeli-Palestinian confrontation instantly affected general market sentiment. First, it was a reset for oil and gold bulls. It also led safe haven stocks higher. The share prices of Lockheed Martin (LMT), Northrop Grumman (NOC) and L3Harris Technologies (LHX) added from 9.2% to 11.5% during the first trading session of the week and in after-hours on expectations of increased spending due to the call for supply of American weapons to the Middle East. Besides, many U.S.
The Magnificent Seven, including Apple, Microsoft, Tesla, Nvidia, Amazon, Google-parent Alphabet and Meta, has been responsible for over 50% of all gains in the S&P 500 broad market indicator during the first half of 2023, according to Refinitive data. These mega caps were the most significant components of the rally, which is now fading. And it seems that many investors are trying to take shelter in these assets.
Tesla stocks serve as a good example of this type of attitude.
A scheduled speech of the European Central Bank's (ECB) chair Christine Lagarde on Wednesday, as well as the U.S. employment and wage growth releases this Friday, may turn out to be the two decisive points for re-adjusting the magnitude and direction of the market trends in October. It has become increasingly important after an eleventh-hour deal between Republicans and Democrats in the American Congress on the weekend that delayed the U.S. government shutdown for another 45 days yet seemingly failed to provide any lasting relief amid autumn symptoms of a bearish disease on Wall Street.
Many market optimists had hoped that the U.S. Federal Reserve's (Fed) message on September 20 would support their faith for further upside rally on Wall Street. Instead, Fed members completed the mission to cause a drop of the S&P 500 broad indicator to the deepest point of the month.
Big techs like Apple, Google and Microsoft lost between two and three percent of their value this Wednesday. The hyping AI-led NVIDIA stocks closed the day at their lowest since August correction. Even Tesla ultimately turned to the red, despite its shares prices initially gaining nearly 2.