Markets Drift Ahead of Key Data and Central Bankers
Global markets drifted yesterday ahead of key data and central bankers’ updates later in the week. The major Wall Street indices all finished lower on the day although none of them took much of a hit, the Dow closed down 0.16%, the S&P 0.20%, and the Nasdaq dropped just 0.07% on what was a disappointing day after the Thanksgiving Day break. The dollar continued its relentless grind lower, the index dropping just 0.2% on the day, but the greenback is on course for its worst month this year. US treasury yields fell again, the 10-year losing 10 basis points, to finish at 4.385%. Oil took a hit again and Gold took another step up to hit a six-month high.
Black Gold Falls Again – Brent dipping under $80 a barrel
Oil prices remain under pressure in the current environment as confusion reigns on a scheduled meeting for OPEC+. Last week a scheduled meeting was canceled as African producers pushed back on the bigger players with regard to production cuts as cracks seemed to emerge in the group. Traders are seeing little chance of a rally until they see some clarity from the group although the expectation is still that the Saudis and Russians will win through and there will be an agreement to keep production cuts in place into the new year. Higher crude stockpiles in the US have also contributed to the move down but expect to see more volatility as this main story continues to weigh on markets.
The Trading Week Starts to Crank Up from Today
It looks set to be a busier day in financial markets today, as the event calendar kicks into gear and the plethora of central bankers we are set to hear from this week really gets going. First up in the Asian session, the focus will be on the Australian market as the latest Retail Sales figures are released, but probably more influentially for Aussie traders we hear from RBA Governor Michelle Bullock as she talks at the HKMA in Hong Kong. It’s quiet on the data front in Europe but scheduled to hear from Buba President Joachim Nagel and MPC member Ramsden. The New York session is dominated by Fed speakers but we have a data hit first with the latest CB Consumer Confidence number before hearing from 4 separate FOMC members, MPC member Haskel and ECB President Lagarde.
