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Markets Update: Chinese officials will conduct a briefing on Friday following a week-long meeting. Treasury yields decline as the Fed indicates a cautious and patient approach to easing. Global stocks reach a record high after Wall Street sets new records.
Global Markets Roundup: 8 November 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
Asian stocks initially rose on Friday, but later trimmed gains as investors awaited stimulus announcements from China following the conclusion of Beijing's week-long legislative meeting. Earlier in the day, regional equities had mirrored Wall Street's overnight surge to record highs, while also considering the Federal Reserve's cautious approach to interest rate cuts despite expectations of significant fiscal spending under President Donald Trump. During Asian trading hours, U.S. Treasury yields fell to new lows, leading to pressure on the dollar after it experienced its largest decline against major currencies in over six weeks on Thursday. The MSCI Asia-Pacific stocks index (.MIAP00000PUS) was up 0.33% as of 0552 GMT, having previously climbed as much as 0.78%. The index was still set to register a 2.7% gain for the week, rebounding swiftly from a sudden drop on the night of the U.S. election, which had raised concerns about potential trade tariffs, particularly involving China.
Chinese stocks remained strong throughout the week due to optimism about a potential response from Beijing, with mainland blue chips posting a 3% gain on Thursday. However, blue chips 3399300 saw a 0.5% decline by the end of the day, erasing earlier gains of up to 1.3%. Hong Kong's Hang Seng index HSI dropped by 0.6%. The National People's Congress Standing Committee meeting is set to conclude on Friday, followed by a briefing from officials. Reuters sources have suggested that Chinese fiscal spending might increase if there is a second Trump presidency. Japan's Nikkei index NI225 rose by 0.6%, marking a 4.1% increase for the week. Australia's XJO index rose by 0.8%, while Taiwan's TWSE:TAIEX benchmark gained 0.6%. South Korea's Kospi index slipped by 0.2%. Futures for Britain's FTSE Z1! and Germany's DAX DAX1! were both up by approximately 0.2%. The FTSE CURRENCYCOM:UK100 experienced a 0.32% decline on Thursday following the Bank of England's warning about the potential for higher inflation. Global stocks represented by EURONEXT:IACWI, with Wall Street in the lead, are on track for a 3.3% weekly increase and are currently at a record high.
Trump made a successful return to the White House on Tuesday as Republicans regained control of the Senate and were on track to expand their House majority, pending final vote counts. This result defied expectations from polls that had suggested a close race with Democrat Kamala Harris. Optimistic investors anticipated Trump's promises of corporate tax reductions and regulatory changes, leading to record highs for the three main Wall Street indexes on Wednesday. The S&P 500 SPXÂ and Nasdaq IXICÂ continued to climb on Thursday, following remarks from Fed Chair Jerome Powell indicating a commitment to gradual policy adjustments. The Dow DJIÂ remained steady. Despite concerns over the new president's proposed policies such as mass deportations, tariffs, and tax cuts, Powell assured that the election outcome would not immediately impact U.S. monetary policy. Reflecting this sentiment, U.S. two-year Treasury yields (US2YT=RR) dipped to 4.2016% by Friday, down from a peak of 4.3120% on Wednesday, as these rates are closely linked to expectations regarding monetary policy.
In the foreign exchange markets,The DXY dollar index, tracking the currency against six key counterparts, inched up to 104.53, following a 0.7% decline on Thursday, marking its largest drop since Aug. 23. It had surged by 1.53% on Wednesday, the highest increase in more than two years. Bitcoin BTCUSD, held steady around $76,000 following a nearly 10% surge this week, hitting a record peak of $76,980 on Thursday. Trump has promised to position the United States as the primary center for cryptocurrency globally. The Australian dollar pair AUDUSD remained steady at $0.6660, after surging 1.7% overnight to reach $0.6687, marking a two-week high. It has fully recovered from the losses incurred following Trump's victory in the White House, which caused it to plummet to $0.6510. Currently, it is on track for a weekly increase of 1.5%, the largest since August. Meanwhile, the New Zealand dollar pair NZDUSD was at $0.6012, following a 1.4% increase overnight to hit a two-week peak of $0.6037. Similarly, it is expected to record a weekly gain of 0.8%. EURUSD | USDJPY | AUDUSD | DXY | NZDUSD
In commodities, Gold struggled to extend its gains after a turbulent week, dropping by 0.6% to $2,691 in the most recent session. Despite a more than 3% decline on Wednesday, it rebounded by 1.8% overnight. The previous week, it reached a record high of $2,790.15. Oil prices slipped on Friday, retracting from a 1% increase overnight, as the market assessed the potential impact of Trump's policies on supplies. Meanwhile, drillers reduced output in preparation for Hurricane Rafael. Brent crude oil futures were down by 0.53% at $75.23 per barrel, while U.S. West Texas Intermediate (WTI) crude dipped by 0.65% to $71.89. Copper futures dropped to approximately $4.37 per pound on Friday as investors kept a close watch on the last day of China's National People's Congress meeting, during which fiscal stimulus measures are anticipated to be revealed. Markets expect Beijing to introduce more assertive policy support actions to counterbalance the effects of increased tariffs during Donald Trump's presidency. In agricultural commodities, December, arabica coffee KC1! increased by 11.65 cents, or 4.7%, to $2.604 per lb​​. January robusta coffee RC2! went up by 4.2% to $4,486 a metric ton following a 2-1/2 month low on Wednesday. March raw sugar SB1! rose by 0.17 cents, or 0.8%, to 22.20 cents per lb. December white sugar SF1! saw a 1.3% increase to $562.90 a ton. March New York cocoa CC2! rose by $508, or 7.6%, to $7,178 a ton, rebounding from a 4% loss on Wednesday. March London cocoa C2! increased by 7.1% to 5,640 pounds per ton after a 2.4% decline on Wednesday. The soybean contract with the highest activity on the Chicago Board of Trade ZS1! decreased by 0.6% to $10.19-3/4 per bushel, following a peak of $10.28 on Thursday. It was poised to achieve a 2.6% increase for the week. Meanwhile, CBOT corn ZC1! dipped by 0.1% to $4.27 per bushel, yet recorded a 3% rise throughout the week. Wheat ZW1! saw a 0.1% decline to $5.70-3/4 per bushel, but was up by 0.5% compared to last Friday's closing price. BRN1! | CL1! | GOLD | HG1! | KC1! | RC1! | CC1! | LEI
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team