Wall Street is in the Green Zone and negative dynamics in Asia Gold and oil rise without a clear trend

2021-11-02T17:59:06
Negative dynamics Oil Wall Street
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Wall Street is in the Green Zone and negative dynamics in Asia Gold and oil rise without a clear trend

Wall Street is in the Green Zone and negative dynamics in Asia Gold and oil rise without a clear trend: New record levels on stock exchanges on Wall Street, as the corporate results announcement season continues. 

Evest follows everything that goes on the market in the following report.

Topics:

New Wall Street records

Negative dynamics in Asia

Inflation rises in South Korea to the highest level since 2012

Oil is traded without a clear trend

Gold and Silver Rise

The Australian Reserve keeps its monetary policy unchanged and leads the currency to decline against the dollar

 

 

New Wall Street records

Major index transactions on the US Stock Exchange ended on Monday with record levels.

The corporate reporting season is the focus of traders. Overall, about half of the companies whose stocks were included in the Standard & Poor’s reported last quarter’s results, while profits of more than 80% exceeded analysts’ expectations.

By the end of Monday’s trading, the Dow Jones Industrial Index rose by 94.28 points (0.26%) and reached 35,913.84 points.

Standard & Poor’s 500 rose by 8.29 points (0.18%) to 4613.67. The Nasdaq composite index rose by 97.53 points (0.63%) to 15595.92 points.

This week, market participants are also waiting for a meeting of the United States Federal Reserve System (FRS), the results of which will be announced on Wednesday.

Investors will await comments from Fed management representatives on price hikes amid inflation, which has reached a maximum in 30 years.

Data from the Institute of Supply Management (ISM) released on Monday showed the US index of ISM Manufacturing fell in October to 60.8 points from 61.1 points in September.

Experts expected the index to fall to 60.5 points on average.

At the end of October, the Nasdaq and Standard & Poor’s indices showed the largest rise in a month since November 2020.

Negative dynamics in Asia

Stock indices in Asia and the Pacific show negative dynamics on Wednesday.

Japan’s Nikkei 225 fell by 0.37% and China’s CSI300 by 0.67%. US S&P 500 index’s futures fell also by 0.2%.

 

Inflation rises in South Korea to the highest level since 2012

South Korea’s inflation accelerated in October to its highest level since January 2012 and exceeded the central bank’s 2% target for the seventh month in a row.

According to the country’s statistics office, the consumer price index rose 3.2% from the same month last year after rising 2.5% in September.

Analysts polled by the Wall Street Journal expected an average rise of 3.3%.

Trade economists predicted 3.15% growth.

Most of all is the rise of fresh food (+7.5%), industrial products and utilities (+3.2%) prices.

In addition, strong increases in energy prices forced the country’s government to cut fuel taxes to ease inflationary pressures.

The price rise in October was 0.1% compared to the previous month, coinciding with Trading Economics’ predictions.

They rose by 0.5% in September. Experts in the Wall Street Journal predicted a rise of 0.2%.

Over the past month, prices have risen by 2.4% on an annual basis, excluding food and energy costs (the basic consumer price index), and 0.3% on a monthly basis.

According to MarketWatch, during its monthly meeting on November 25, the Bank of South Korea is likely to tighten monetary policy. 

The central bank raised the benchmark interest rate in August.

The regulator expects inflation to be 2.1% by the end of this year.

Oil is traded without a clear trend

Oil prices are changing in different trends in trading on Tuesday, but only slightly.

The price of Brent crude is rising slightly, and the price of West Texas Intermediate crude is falling based on information about inventories’ growth at Cushing terminal (Oklahoma).

According to Wood Mackenzie, citing information from traders, inventories in Cushing, where Nymex-traded oil is stored, rose by 852 thousand barrels from October 26 to 29.

Brent crude futures for December on the London Futures Exchange rose by $0.04 (0.05%), to $84.75 per barrel.

During the previous session, Brent crude rose by $0.99 (1.2%) to $84.71 per barrel.

December futures for West Texas Intermediate crude were cheaper in electronic trading on the New York Mercantile Exchange (NEMX) by $0.08 (0.1%), to $83.97 per barrel. 

The future rose by $0.48 (0.6 percent) to $84.05 per barrel on Monday.

Traders’ focus this week is on the next meeting of OPEC + ministers on November 4,
and experts generally expect a decision to increase production next month according to the
pre-approved plan – by 400 thousand barrels per day.

According to experts, OPEC + has so far refused to act decisively,
despite the severe energy crisis in Europe and repeated calls from a number of importing countries, including India, to increase production.

 

Gold and Silver Rise

Before the European opening, gold and silver are both trading higher.

The yellow metal is 0.13% higher and still just under $1,800 per ounce. Silver is almost steady at $24 an ounce. In the rest of the commodity complex, copper fell by -0.76%.

The Australian Reserve keeps its monetary policy unchanged and leads the currency to decline against the dollar

In foreign exchange markets, the Australian dollar pair was the largest driver against the US dollar after the Reserve Bank of Australia announced its monetary policy, falling by more than -0.60%.

Elsewhere, the US dollar pair suffered a fall of 0.28% against the Japanese yen due to the aforementioned risk environment. 

On the other hand, the Reserve Bank of Australia maintained its cash interest rate at 0.10% but fell behind the target of a government bond yield for April 2024.

“I think the markets have overreacted to the latest inflation data,” noted RBA’s Lowe.

“There remains considerable uncertainty about wage growth. It is now reasonable that an interest rate hike would be appropriate in 2023,” Added Louie.  

 

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