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Markets Update: Markets are closely monitoring the appointments of Trump's Treasury and trade chiefs. Nvidia's earnings on Wednesday could influence the short-term direction of stocks. Oil and gold prices are supported by increased tensions in the Russia-Ukraine conflict.
Global Markets Roundup: 19 November 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
On Tuesday, a global stocks index increased by 1%, while U.S. bond yields and the dollar remained below their recent highs. Traders were anticipating President-elect Donald Trump's cabinet appointments and assessing the future of U.S. interest rates. Tech stocks showed gains, following the recovery of Wall Street from significant losses last week. However, the upcoming earnings report from Nvidia on Wednesday limited the potential for significant market movements. The MSCI world stocks index (EURONEXT:IACWI) broke a four-day losing streak on Monday with a 0.35% rise and continued to climb by 1% in the most recent session on Tuesday. Expectations for a 0.25% interest rate cut at the Federal Reserve's December meeting decreased to less than 59%, down from nearly 62% the day before.
Analysts view Trump's proposed fiscal spending, heightened tariffs, and stricter immigration policies as potential drivers of inflation that may hinder the Fed from lowering rates. This scenario is further complicated by a string of robust economic indicators. While Trump has begun naming appointees to health and defense roles, crucial positions for financial markets like Treasury secretary and trade representative remain pending. In early trading, Europe's STOXX index SXXP climbed by 0.2%, tracking gains of 0.5% for Japan's Nikkei NI225 and a 0.8% surge in Australia's XJO equity benchmark, hitting a new intraday peak. Taiwanese shares TWSE:TAIEX surged by 1.3%. Conversely, Chinese markets exhibited weakness as investors weighed the potential repercussions of Trump's tariffs and awaited more information on stimulus measures from Beijing. Mainland blue chips 3399300 fell by 1.2%. U.S. S&P 500 futures ES1! inched up by 0.1%, following a 0.4% rise in the SPX cash index overnight.
In currencies, The DXYÂ dollar index, which monitors the currency against a selection of six others, remained relatively stable at 106.23, near Monday's low at 106.12. It had previously peaked at 107.07 last Thursday, marking a one-year high. The dollar weakened by 0.17% against the yen to 154.16 USDJPY, while showing a slight improvement to $1.0586 per euro EURUSD. Bitcoin BTCUSD, after reaching a record high of $93,480 last week amid expectations of more favorable cryptocurrency regulations during the Trump administration, edged closer to that level on Tuesday, climbing 0.37% to $91,688. EURUSDÂ | USDJPY | AUDUSD | DXY | NZDUSD
In commodities, oil prices held steady, maintaining the previous session's $2 per barrel increase. Brent crude futures BRN1! fell by 0.2% to $73.14 per barrel, while U.S. West Texas Intermediate crude futures CL1! were at $68.97 per barrel, showing a 0.27% decrease. The oil market was supported by the shutdown of Norway's significant Johan Sverdrup oilfield following a power outage. In the meantime, the safe-haven gold GOLD climbed by 0.28% to $2,619 after a nearly 2% surge on Monday, marking its most significant one-day gain since mid-August, amid a weaker dollar and escalating concerns about the Russia-Ukraine conflict.
In agricultural commodities, March arabica coffee futures, represented by KC2, closed 1.1 cents lower at $2.822 per pound, a decrease of 0.4% from the previous session. The contract reached its highest level since May 2011 at $2.9150 earlier in the day. Meanwhile, January robusta coffee, indicated by RC2, ended the session down by $38, or 0.8%, at $4,735 per tonne. March London cocoa (C2) settled 182 pounds lower, a drop of 2.7%, at 6,680 pounds per tonne, following a remarkable 22.19% increase the previous week. In contrast, March New York cocoa (CC2) closed $189 lower, down by 2.2%, at $8,315 per tonne. March raw sugar (SB1) saw an increase of 0.62 cents, or 2.9%, settling at 22.20 cents per pound after six consecutive weeks of losses. Lastly, March white sugar (SF1) settled $18.50 higher, up by 3.3%, at $573.50 per tonne. The wheat contract ZW1! with the highest activity on the Chicago Board of Trade dropped by 0.27% to $5.64 per bushel, while corn ZC1! decreased by 0.06% to $4.29 per bushel. Following a two-day increase, the soybean contract ZS1! declined by 0.35% to $10.06 per bushel due to the weakening of the U.S. dollar DXY and the expectation of a substantial South American harvest, putting additional pressure on the market. 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