Global Economic Daily - 22/11/2023
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Closing Commentary
Quote of the Day: Begin to be now what you will be hereafter. – William James
Equities: Stocks slid on Tuesday as traders assessed the latest Federal Reserve meeting minutes, where officials gave no indication of interest rate cuts. The Fed indicated that policy will need to remain “restrictive” amid concerns that inflation could be stubborn or tick higher. Policymakers left the benchmark rate at 5.25% to 5.5% at the conclusion of their Oct. 31-Nov. 1 meeting. As rates remain “higher for longer,” housing data shows last month was difficult for prospective homebuyers. Existing home sales in October came in at 3.79 million units, versus estimates of 3.9 million, according to the National Association of Realtors. This marked the slowest sales pace since August 2010, and a 14.6% fall from the prior year. The Dow Jones Industrial Average slipped 62.75 points to end at 35,088.29. The S&P 500 dipped 9.19 points closing at 4,538.19, while the Nasdaq 100 fell 93.44 points to 15,933.62. Both the broad-market benchmark and the tech-heavy Nasdaq snapped a string of five consecutive winning days. TECHNICAL OUTLOOK - The Dow and the S&P remain above the 14, 21 day moving average.
Crude Oil: Oil prices ended near flat on Tuesday after rallying for two sessions, with investors cautious ahead of Sunday's scheduled OPEC meeting, when the producer group may discuss deepening supply cuts due to slowing global economic growth. Even if the OPEC nations extend their cuts into next year, the global oil market will see a slight supply surplus in 2024, the head of the International Energy Agency's oil markets and industry division said on Tuesday. Currently though, the oil market is in a deficit with stocks declining. U.S. crude stocks rose by nearly 9.1 million barrels in the week ended Nov. 17, according to market sources citing American Petroleum Institute figures on Tuesday. Oil has fallen about 16% since late September as crude output in the U.S., the world's top producer, held at record highs, while the market was concerned about demand growth and a potential economic slowdown. TECHNICAL OUTLOOK - The crude remains below the 14, 21 day moving average.
Metals: Gold prices are solidly higher, hit a three-week high and are back above $2,000 in midday U.S. trading Tuesday. Silver prices are also posting good gains. The precious metals are seeing support from short covering by the futures traders and from some downbeat U.S. homes sales and leading economic indicators data released earlier this morning. Trader/investor notions of no more Federal Reserve interest rate increases on the horizon are also an underlying bullish element for the metals markets. Technically, December gold futures prices hit a three-week high today. The bulls have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at the October high of $2,019.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $1,935.60. December silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the November low of $21.925. TECHNICAL OUTLOOK – Both Gold and Silver are above the 14, 21 day moving average.
DISCLAIMER: The Information and data contained herein was obtained from sources deemed reliable. The accuracy and completeness are not guaranteed
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
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