Global Economic Overview - 21/11/2023
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Quote of the Day: Change is the end result of all true learning. – Leo Buscaglia
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Equities: Stocks jumped Monday to start a holiday shortened week, boosted by strong tech gains led by Microsoft and Nvidia. The?Dow Jones Industrial Average?gained 203.76 points to close at 35,151.04. The?S&P 500?added 33.36 points and ended at 4,547.38, while the?Nasdaq 100?climbed 189.07 points to close at 16,027.06. It was the fifth consecutive day of gains for the S&P 500 and the tech-heavy Nasdaq. U.S. markets will be closed Thursday due to the Thanksgiving holiday. Friday will also be a shortened trading day. Trading around the Thanksgiving holiday has been choppy in recent years, but November is still the best-performing month for the S&P 500, according to the Stock Traders’ Almanac. Market bulls remain enthusiastic into year-end, particularly after cooler-than-expected U.S. inflation data released last week calmed investors’ nerves about stubbornly high prices and?provided a hopeful indication?that the Federal Reserve could stop raising interest rates. Yields also continued their decline on Monday following a?strong auction?on 20-year Treasury notes. Asian and European markets were mixed in overnight trading. U.S. stock indexes are higher and at or near multi-week highs today. It will likely be a quieter trading week as the U.S. Thanksgiving holiday is on Thursday and Friday is typically one of the quietest U.S. trading days of the year. TECHNICAL OUTLOOK - The Dow and the S&P are both above the 14, 21 day moving average.
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Crude Oil: Oil prices climbed more than 2% on Monday as further supply cuts in OPEC+ production are expected to be announced following a meeting of member countries early next week. Both benchmarks have plunged for four straight weeks, but started to rebound on Friday, settling 4% higher on profit-taking, the Organization of the Petroleum Exporting Countries and allies including Russia, is set to consider whether to make additional supply cuts when it meets on Nov. 26. Goldman Sachs said that based on its statistical model of OPEC decisions, deeper cuts should not be ruled out given the fall in speculative positioning and in time- spreads, and higher-than-expected inventories. Oil prices have dropped almost 20% since late September as crude output in the U.S., the world's top producer, held at record highs, while the market was concerned about demand growth, especially from China, the No. 1 importer of oil. TECHNICAL OUTLOOK - The crude remains below the 14, 21 day moving average.
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Metals: Gold?and?silver prices?are moderately lower in midday U.S. trading Monday. The safe-haven metals bulls have lost momentum amid investor risk appetite that continues to improve heading into the holidays. There are solid clues the U.S. Federal Reserve is done raising interest rates amid falling inflation. And six weeks into the Israel-Hamas war there has been no major military escalation to involve other countries. Technically, December gold futures bulls have the slight overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. December silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the November low of $21.925. TECHNICAL OUTLOOK – Gold is below the 14, 21 day moving average, while silver is above it.
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?DISCLAIMER: The Information and data contained herein was obtained from sources deemed reliable. The accuracy and completeness are not guaranteed
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