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Markets Update: Safe-haven assets are declining due to reduced geopolitical tensions. Nvidia earnings options suggest volatility in stock prices. Wall Street futures are rising, while the dollar remains stable. Bitcoin is close to its all-time high.
Global Markets Roundup: 20 November 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
On Wednesday, global stocks saw an increase in value following a decrease in tensions between Russia and the West, boosting investor confidence before Nvidia's earnings report in the artificial intelligence sector. Meanwhile, bitcoin reached a new all-time high, and the dollar slightly strengthened. After reports of Ukraine firing U.S.-made long-range missiles into Russia and Russia lowering its nuclear action threshold, safe-haven assets like gold and government bonds experienced a rise on Tuesday. Russian Foreign Minister Sergei Lavrov later played down the nuclear threat, leading to a more stable market environment and allowing investors to shift their focus to more immediate developments.
The MSCI All-World index EURONEXT:IACWI remained unchanged on Wednesday after a 0.4% increase on Tuesday. On the other hand, European shares represented by SXXP surged by 0.4%, while U.S. stock index futures ES1! and NQ1! rose by 0.2%. Nvidia, the world's most valuable company, is set to announce its third-quarter results post-market close. Although shares saw a modest 0.3% increase in pre-market trading, traders are bracing for potential volatility. Market options suggest a potential 9% fluctuation in either direction for the $3.6 trillion stock, which acts as a key indicator for the tech sector's transition to AI. Meanwhile, bitcoin (BTCUSD) hit a new record high above $94,000 overnight and was trading at $93,450, marking a 1.3% increase. The surge in price, exceeding 30% since the U.S. presidential election on Nov. 5, is attributed to expectations of a more crypto-friendly regulatory environment under the presumed winner, Donald Trump. Investors are keenly observing Trump's choice for Treasury secretary, with an announcement expected imminently. Chinese mainland stocks are expected to increase by 0.2% at 3399300, mirroring the performance of Hong Kong's Hang Seng index at HSI.
In the foreign exchange markets, the US dollar strengthened by 0.3% to 106.5 against the DXY, surpassing its one-week lows. Since the election, it has increased by almost 3%, with investors showing confidence in the potential impact of Trump's policies on growth and inflation through taxes, trade, and immigration. Other currencies like the Japanese yen and the Swiss franc, which also saw gains on Tuesday, faced downward pressure. The dollar's value against the yen USDJPYÂ rose by 0.7% to 155.78. Similarly, against the franc (USDCHF), it increased by 0.3% to 0.8851 francs. The Chinese yuan (USDCNH) depreciated after the central bank kept benchmark lending rates unchanged, as widely anticipated. EURUSDÂ | USDJPY | AUDUSD | DXY | NZDUSD
In commodities, on Wednesday, oil prices increased further following the gains from the previous day. Brent crude BRN1! rose by 0.76% to $73.87 per barrel, and West Texas Intermediate futures CL1! climbed by 0.9% to $70.02. Meanwhile, the price of gold GOLD, a traditional safe-haven investment, dipped to $42,623 per ounce, marking a 0.3% decrease for the day. BRN1! | CL1! | GOLD | HG1!
In agricultural commodities, March, arabica coffee futures KC2! closed 0.9 cents lower, or 0.3%, at $2.813 per pound after reaching a peak not seen since May 2011 at $2.9150 on Monday. January robusta coffee futures RC2! dropped by 1.7% to $4,656 per metric ton. March London cocoa futures C2! ended the session with a gain of 285 pounds, or 4.3%, at 6,965 pounds per ton, following a 0.3% decline on Monday. March New York cocoa futures CC2! surged by 3% to $8,563 per ton. March raw sugar futures SB1! settled 0.18 cents lower, or 0.8%, at 22.02 cents per pound, marking the sixth consecutive weekly loss. March white sugar futures SF1! declined by 0.8% to $568.70 per ton. The wheat contract ZW1! on the Chicago Board of Trade, which is the most active, decreased by 0.66% to $5.64 per bushel, remaining near its highest level since November 12 reached on Tuesday. The soybean contract ZS1! dropped by 0.45% to $9.94 per bushel due to anticipated high yields in Brazil, the leading producer. Meanwhile, the corn contract ZC1! fell by 0.12% to $4.27 per bushel. 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