WEEKLY MARKET RECAP
Your weekly global financial market newsletter
WEEKLY MARKET RECAP
Your weekly global financial market newsletter
Stocks concluded the holiday-shortened trading week with gains as markets closed early on Friday and remained shut on Thursday for Thanksgiving. S&P Global’s November business activity estimates revealed notable expansion in the services sector, compensating for a larger-than-anticipated manufacturing slowdown. Despite this positive trend, S&P highlighted workforce reductions for the first time since June 2020 due to subdued demand and diminishing backlogs. The pan-European STOXX Europe 600 Index closed 0.91% higher, fueled by expectations of central banks initiating interest rate cuts in the first half of the coming year. Major stock indices showed a mixed performance, with Germany’s DAX rising by 0.69% and the UK’s FTSE 100 Index declining by 0.21%.
US30 +1.27% |
US100 +0.91% |
US500 +1.00% |
GER40 +0.69% |
Oil prices fell on Friday as reduced geopolitical risk, following the release of hostages in Gaza, contributed to a 1% drop in Brent crude to $80.58 a barrel, and a 2% decline in U.S. West Texas Intermediate crude to $75.54. Despite the daily decline, both contracts saw their first weekly gains five weeks ahead of the upcoming OPEC+ meeting to decide on 2024 production cuts. The delayed meeting initially led to a decline in oil prices, but expectations point to a compromise and a possible extension of existing cuts. In the Indian precious metals market, spot Gold prices declined slightly, ranging from INR 63,120 to INR 63,315 per 10 grams in Mumbai and Ahmedabad. MCX reported spot Gold at INR 61,175 per 10 grams, with futures at INR 61,130, while Silver futures fell to INR 72,755 per kilogram. These movements followed global economic cues and significant developments, including expectations of a rate cut by March 2024, positive US data strengthening the dollar, and a hawkish stance from the FOMC. Comex Gold remained stagnant during Asian trading hours as investors navigated economic indicators and central bank policies.
NATGAS -3.21% |
The dollar weakened against a basket of currencies as U.S. business activity remained steady in November, while private sector employment declined in line with expectations for a fourth-quarter economic slowdown. Currencies traded in a narrow range with U.S. markets closing early after Thanksgiving. The lack of strong order growth led to businesses shedding workers, contributing to a contraction in manufacturing. The Dollar Index fell to 103.35, near a 2.5-month low, down 0.5% for the week, marking its weakest monthly performance in a year. The Japanese yen remained flat against the dollar, while the euro rose following positive German business morale data. Sterling reached its highest level since early September on British companies returning to growth in November.
EUR/USD +0.24% |
USD/JPY -0.13% |
GBP/USD +1.07% |
USD/CAD -0.69% |
The cryptocurrency market is abuzz with discussions about the potential impact of a Bitcoin spot exchange-traded fund (ETF) approval. Recent events, such as the U.S. Department of Justice’s settlement with Binance and Bitcoin’s resilience amid market changes, have fueled speculations. Despite a 20% drop in Binance Coin following the DOJ settlement, Bitcoin reached its highest value in eighteen months at over $38,000. Predictions about Bitcoin’s future vary, with some expecting it to rise to $42,000, while others suggest a potential surge to $1 million following ETF approval. The crypto industry is optimistic about broader adoption and increased capital inflows if a Bitcoin ETF is approved. While concerns about adoption rates remain, there is a general consensus that an ETF could positively impact demand and cryptocurrency prices, with experts expressing growing confidence in its potential as a catalyst for market development.
BTC +0.62% |
ETH +3.32% |
LTCUSD -0.75% |
XMRUSD +3.42% |
In the United Kingdom, the fall budget introduced tax cuts for workers, business investment incentives, and measures supporting the housing market. The Office for Budget Responsibility (OBR) projected a 0.6% expansion in the economy this year but significantly reduced growth forecasts for 2024 and 2025 to 0.7% and 1.4%, respectively.
Within the Eurozone, ECB policymakers reaffirmed their commitment to combat inflation, dispelling market expectations of imminent interest rate cuts. ECB President Christine Lagarde mentioned the possibility of stable rates for the “next couple of quarters,” while François Villeroy de Galhau of France suggested rates might remain at a plateau for the “next few quarters.” Belgium’s Pierre Wunsch indicated that the ECB is likely to maintain the status quo in both December and January. A purchasing managers’ survey revealed a sixth consecutive monthly decline in eurozone business activity in November, with the HCOB Flash Eurozone Composite PMI Output Index at 47.1, up from October’s three-year low of 46.5—indicating a decline (readings below 50).
In the United States, the Commerce Department reported a 5.4% decline in durable goods orders in October, the second-largest drop since April 2020. The decrease, largely driven by a significant fall in volatile civilian aircraft orders, also saw orders excluding aircraft and defence purchases, considered a business investment proxy, slightly declining for the second consecutive month.
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