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Markets Update: Hong Kong shares decline by 1.9% following disappointment over Beijing's stimulus. Bitcoin reaches a record high amidst anticipation of relaxed regulations under the Trump administration. The dollar remains stable in anticipation of crucial U.S. inflation figures and speeches from Federal Reserve officials.
Global Markets Roundup: 11 November 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | GOLD | CL1! | ZC1! | ZS1! HG1!
On Monday, Hong Kong stocks led the decline in Asia following Beijing's latest stimulus package, which did not meet investor expectations. This overshadowed Wall Street's recent record highs and the positive futures pointing to further strength at the reopening. Bitcoin reached a new all-time high after Donald Trump's victory in the U.S. presidential election and the election of pro-crypto candidates to Congress raised hopes for a less strict regulatory environment. The dollar remained close to last week's four-month peak against major currencies as traders awaited U.S. consumer inflation data and a series of speeches by Federal Reserve officials, including Chair Jerome Powell on Thursday. Hong Kong's Hang Seng index dropped 1.9% by 0545 GMT, with mainland Chinese property shares falling 3.3%. Chinese blue chips were more volatile, trading 0.2% higher after an initial 1.6% decline.
Japan's Nikkei index remained flat after recovering from minor early losses, while South Korea's Kospi fell by 0.8%. Australia's benchmark index declined by 0.4%, dragged down by commodity stocks following weakening oil and industrial metals prices. On Friday, the National People's Congress Standing Committee announced a 10 trillion yuan ($1.39 trillion) debt package to ease local government financing pressures and stabilize slowing economic growth, but the stimulus measures did not include the direct injection of funds into the economy that some investors had anticipated, especially in light of potential significant tariffs under the incoming Trump administration.
The discouraging news overshadowed the positive momentum from Wall Street, where the S&P 500 index surpassed the 6,000-point mark for the first time, ending just below that milestone. S&P 500 futures rose by 0.2% on Monday. Additionally, Pan-European STOXX 50 futures increased by 0.4%. The Republican party is on the brink of securing control of both chambers of Congress, having won the Senate on election night and currently projected to hold 214 out of the 218 seats required for House control, in contrast to the Democrats' 205 seats. Investors anticipate that a second term for President Trump will result in tax cuts and relaxed regulations that will benefit the stock market.
In currencies, Bitcoin, BTCUSD, continued its upward trend known as the "Trump trade" by reaching a new all-time high of $81,899.22. The dollar index DXYÂ and measuring the currency against six major peers, slightly increased to 105.06 after a 0.55% rise on Friday. Traders are anticipating the consumer price data release on Wednesday, which could impact the possibility of an interest rate cut at the upcoming December meeting. The dollar strengthened by 0.6% against the yen, reaching 153.50 USDJPY, recovering from the decline observed on Friday when the pair followed the decrease in long-term U.S. Treasury yields represented by US10Y. Minutes from the Bank of Japan's October policy meetings revealed a split among officials regarding the timing of a potential rate hike, but the market response was subdued. U.S. bond markets are closed on Monday for Veterans Day, while Wall Street remains open. The euro EURUSD, remained stable at $1.0717, hovering close to a four-month low. Political uncertainty persisted as German Chancellor Olaf Scholz expressed readiness to call for a vote of confidence before Christmas, potentially leading to snap elections after his governing coalition collapsed. Sterling GBPUSD, experienced a slight decline of about 0.1% to $1.2914. EURUSDÂ | USDJPY | GBPUSD | AUDUSD | NZDUSD
In commodities, Gold prices decreased by 0.5% to $2,669.13 per ounce, moving further away from the previous month's peak of $2,790.15. In Shanghai, base metals experienced a decline, with the December copper contract on the Shanghai Futures Exchange (SHFE) falling by 0.9% to 76,570 yuan per ton. Oil prices continued their drop from Friday, with both Brent and West Texas Intermediate (WTI) falling by over 2%. Brent futures fell by 0.5% to $73.53 per barrel on Monday, while U.S. WTI futures lost 0.6% to $69.99 per barrel. The soybean contract with the highest trading activity on the Chicago Board of Trade ZS1! increased by 0.8% to $10.38-1/4 per bushel, having reached $10.44 on Friday. CBOT corn ZC1!, which reached $4.35 on Friday, decreased by 0.2% to $4.30-1/4 per bushel, while wheat ZW1! dropped by 1.3% to $5.65-1/4 per bushel. GOLD | CL1! | ZC1! | ZS1! HG1!
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