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Markets Update: Bitcoin remains stable above the $90,000 mark, supported by the return of Trump to the White House. Investors are monitoring US bond yields closely amid evaluations of interest rates and inflation forecasts. Despite the recent assistance from Beijing, China's markets are experiencing a decline.
Global Markets Roundup: 14 November 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
On Thursday, Asian stocks experienced a widespread decline, while longer-term U.S. bond yields and the dollar both saw an increase. Investors were evaluating the monetary policy and inflation prospects in the largest global economy. Bitcoin (BTCUSD) stabilized above $90,000 after surpassing that threshold in the previous session, with momentum coming from Donald Trump's return to the White House and the belief that his administration would benefit cryptocurrencies. The world's largest cryptocurrency was recently trading 1.6% higher at $90,067, following a notable 30% surge over the past two weeks. In the broader market, traders reacted to a U.S. inflation report that met expectations by increasing bets on a Federal Reserve rate cut next month. However, the outlook for monetary policy in 2025 and beyond was uncertain due to Trump's return to power. Trump's proposed policies of lower taxes and higher tariffs are anticipated to fuel inflation and limit the Fed's ability to lower interest rates, which is likely to support the dollar.
European shares were set for a steady start, unlike the declines observed in Asia. EUROSTOXX 50 futures FESX1! inched up by 0.04%, while FTSE futures Z1! increased by 0.02%. On the other hand, Nasdaq futures NQ1! dropped by 0.18%, and S&P 500 futures ES1! decreased by 0.1%. In the latest trading session, Asia-Pacific shares outside Japan, as indicated by MSCI's broadest index (.MIAPJ0000PUS), were down by 0.63%, erasing some earlier gains. This drop was driven by a decline in Chinese stocks, which faced challenges in advancing. The mainland CSI300 blue-chip index 3399300 fell by 0.92%, while the Shanghai Composite Index 000001 lost 0.96%. Additionally, Hong Kong's Hang Seng Index HSI slipped by 1.5%. Investors were unimpressed by Beijing's recent measures to support China's slowing economy, such as the tax incentives for home and land transactions announced by the finance ministry on Wednesday. China's real estate sector has been experiencing difficulties since 2021, presenting a major obstacle to the world's second-largest economy. In line with the broader Asian trend, Japan's Nikkei NI225 reversed its early gains to trade 0.11% lower.
Based on LSEG data, the US10Y benchmark, representing the 10-year Treasury yield, rose to 4.483%, its highest level since July 1. The US30YT=RR 30-year yield hovered near a five-month peak at 4.6505%. The US2YT=RR two-year yield, an indicator of short-term rates, climbed by 3 basis points to 4.3153%, positioned at the lower end of the yield curve. Presently, the market foresees an 83% chance of a 25 bps rate cut by the Fed next month, up from around 59% a day earlier. However, expectations for Fed rate cuts in the coming year have diminished following Trump's victory in the recent election.
In the foreign exchange markets, On Thursday, the dollar strengthened as longer-term Treasury yields rose, despite increasing expectations of a Fed rate cut in December, which would typically weaken the currency. This led to the greenback pushing the euro (EURUSD) to a one-year low of $1.0534 and surpassing the 156 yen mark (USDJPY) during the Asian trading session. The dollar index (DXY) reached a one-year peak at 106.77. Meanwhile, the Australian dollar (AUDUSD) declined by 0.33% to $0.6464, driven lower by disappointing employment data domestically. EURUSDÂ | USDJPY | AUDUSD | DXY | NZDUSD
In commodities, concerns about increased production and weak worldwide demand led to a drop in oil prices. Brent crude futures BRN1! decreased by 0.62% to $71.83 per barrel, while U.S. West Texas Intermediate crude (WTI) futures CL1! declined by 0.7% to $67.95. The price of spot gold GOLD also decreased by 0.53% to $2,560.15 per ounce. In soft commodities, London, the price of March cocoa futures C2! increased by 4.4% to reach 6,323 pounds per metric ton, marking a four-month peak. The prices surged to a session high of 6,590 pounds per ton. Meanwhile, March New York cocoa futures CC2! also reached a four-month high of 8,289 per ton during the session, but later retreated slightly to settle 4.3% higher at $7,971 per ton. On the other hand, March raw sugar futures SB1! dropped by 0.8% to 21.17 cents per pound after hitting a nearly two-month low of 20.86 cents during the session. December white sugar futures SF1! declined by 0.9% to $538.20 per ton after touching a near two-month low of $522.30. January robusta coffee futures RC2! increased by 2.1% to $4,632 per ton, reaching a near one-month high. Additionally, March arabica coffee futures KC2! rose by 3.1% to $2.712 per pound, the highest level since September 26. The main wheat contract on the Chicago Board of Trade, ZW1!, dropped by 0.1% to $5.40-3/4 per bushel after reaching its lowest point since Aug. 29 at $5.36-1/2 on Wednesday. Meanwhile, CBOT soybeans ZS1! saw a 0.5% increase to $10.12-1/2 per bushel, and corn ZC1! rose by 0.2% to $4.27-1/4 per bushel. BRN1! | CL1! | GOLD | HG1! | KC1! | RC1! | CC1!
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