JASPER’S MARKET SQUAWK 17-11-2023
<h2>Investors Push Brakes on Rally</h2>
<p>Despite US economic data giving the Fed more room to end its hiking campaign, markets took the backseat as weak corporate outlooks influenced investor sentiment. The 10-year yield retreated to 4.437%, with WTI plunging and gold rising.</p>
<p><img decoding="async" loading="lazy" class="alignnone wp-image-27070 size-full" src="https://www.keytomarkets.com/blog/wp-content/uploads/2023/11/Template-Daily-7.png" alt="" width="1912" height="915" srcset="https://www.keytomarkets.com/blog/wp-content/uploads/2023/11/Template-Daily-7.png 1912w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/11/Template-Daily-7-300×144.png 300w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/11/Template-Daily-7-1024×490.png 1024w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/11/Template-Daily-7-768×368.png 768w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/11/Template-Daily-7-1536×735.png 1536w" sizes="(max-width: 1912px) 100vw, 1912px" /></p>
<p><strong>Chart: GOLD</strong></p>
<h2>Key Factors for Today</h2>
<ul>
<li>Markets Hit Roadblock After Disappointing Corporate Outlooks</li>
<li>WTI Oil Takes Dive on Weak China and US Economic Data</li>
<li>Gold Shines Amidst Renewed Speculation of Peak Rates</li>
<li>BOE’s Greene Puts Foot Down on Higher for Longer Narrative</li>
<li>BOJ Governor Persists on Ultraloose Policy in Pushback Talk</li>
</ul>
<h2>WTI Tumbles 5% as US and China Data Weigh on Demand</h2>
<p>WTI oil plunged more than 5% on Thursday due to concerns about China’s demand and weak economic data from the US. China’s property sector continued to face challenges, with new home prices falling for a fourth consecutive month and property sales declining. Industrial and manufacturing output lagged in the US in October, contributing to oil’s decline. While trading above $70 a barrel, $75 makes a solid resistance if bulls attempt higher prices. On the contrary, losing the round support will expose $68 next.</p>
<h2>Gold Jumps Over 1% on Rising Speculation of Peak Rates</h2>
<p>US initial jobless claims rose to 231K from 220K expected, signalling a slowing labour market. Industrial production also fell more than expected from -0.36% to -0.6%, and homebuilder sentiment hit its lowest level of the year. Treasuries climbed in response, leading to speculation that the Fed has ended its hiking campaign. Gold ended 1.13% higher from $1959 to $1981 an ounce on Thursday, with focus back on the 2K handle. Meanwhile, Fed Bank of Cleveland President Loretta Mester hasn’t decided whether another rate hike is needed.</p>
<h2>BOE’s Greene Remains a Higher For Longer Advocate</h2>
<p>BOE policymaker Megan Greene (hawkish voter) said that banks may need to keep interest rates higher for longer and pushed back on talk of rate cuts, saying they are not discussed within the MPC. Meanwhile, although Ofgem’s energy price cap has been reduced, it will likely increase for the first quarter of 2024 for the winter months. Energy bills are expected to rise by around 5% from next January. GBPUSD was seen flatlining above $1.24, leaving behind $1.2376 and $1.2455.</p>
<h2>Ueda Reiterates Need to Maintain Ultraloose Policy</h2>
<p>BOJ Governor Kazuo Ueda stressed the need to maintain its policy for now, although exit strategies are being discussed. He said that a rise in inflation driven by stronger domestic demand and wages must come before even considering tightening. Meanwhile, Warren Buffett’s Berkshire Hathaway, a large issuer of yen debt, sold yen bonds worth ¥122 billion ($810 million) in its second Japan deal this year. USDJPY slid 0.40% to ¥150.71, forming resistance at 151.33 and opening the door to ¥150.</p>
<h2>On The Docket</h2>
<ul>
<li>GB Retail Sales</li>
<li>ECB President Lagarde Speech</li>
<li>EA Inflation</li>
<li>BOE Greene Speech</li>
<li>Building Permits</li>
<li>Housing Starts</li>
<li>Fed Barr Speech</li>
<li>Fed Collins Speech</li>
<li>Fed Goolsbee Speech</li>
<li>Fed Dally Speech</li>
<li>China FDI</li>
</ul>
<h2>FX 1-Day Relative Performance (USD)</h2>
<ul>
<li>Aussie 0.04% higher while Kiwi 0.22% down</li>
<li>Euro and Pound unchanged</li>
<li>Loonie muted, Frank at -0.02%</li>
<li>Japanese yen up by 0.06%</li>
<li>Gold down 0.02%, Silver at -0.24%</li>
<li>Crude and Brent barely up at 0.05%</li>
<li>Natural gas 1.21% in the green zone</li>
</ul>
<p>The post <a href="https://www.keytomarkets.com/blog/analysis/jaspers-market-squawk-17-11-2023-27066/">JASPER’S MARKET SQUAWK 17-11-2023</a> appeared first on <a href="https://www.keytomarkets.com/blog">Key To Markets Blog</a>.</p>
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