Sign In with Google
Sign In with Facebook
Mixed Performance of Major Currencies
In the global currency landscape, the British Pound (GBP) is currently outshining its counterparts as the most robust major currency, leaving behind the Australian Dollar (AUD), which appears to be underperforming. The U.S. Dollar (USD) is giving a mixed performance, making it challenging to categorize.
Rising US Bond Yields and Strong US Economy
The rise in U.S. bond yields reflects market expectations of enduring high-interest rates, an outcome of a booming U.S. economy. While the Federal Reserve Chair has suggested the possibility of a tighter monetary policy, elevated market interest rates could render central bank intervention unnecessary.
Crude Oil, Bitcoin, Gold and Silver Prices
Israeli airstrikes in Gaza have wreaked havoc on crude oil prices, sending them down despite an earlier surge caused by potential supply disruption fears from escalating Israel-Hamas conflict. In the precious metals market, gold and silver prices are seen dwindling. On the flip side, Bitcoin seems to be on the rise.
US Stocks Down and Major Companies Earnings Reports
A fifth day in a row saw a drop in U.S. stocks, with the NASDAQ and S&P indices dropping for the fourth day. A decline is implied in the futures for the Dow Industrial Average, S&P index, and NASDAQ. High-profile companies such as Microsoft, Alphabet, Meta, Amazon, Phillips, Logitech, Coca-Cola, and Verizon are scheduled to furnish their earnings reports this week.
Economic Data Releases
This week will see the release of economic data including third-quarter GDP growth figures and the core personal consumer expenditures price index. Concurrently, trading is on a downtrend in both European equity markets and Asia Pacific markets.
US Debt Marker and Federal Reserve Rates
Higher yields in the U.S. debt market are a repercussion of significant U.S. borrowing that contributes to the fiscal 2023 budget deficit. The steepness of the yield curve has notably changed, particularly reflected in the 2 – 10-year spread and the 2 – 30-year spread. European benchmark 10-year yields are also trending positively. Amid these developments, market watchers eagerly look forward to the Federal Reserve's anticipated announcement of a rate decision.
Israeli Ground Invasion Concerns
There is growing apprehension about an Israeli ground invasion of Gaza that could potentially disrupt the oil supply further. This could lead to a significant shift in the global economy and market performance.
