Jessica Amir
Market Strategist
Summary: Eight Minute Daily Dose of Financial Insights for Investors and Traders; covering what to watch today, what could move markets ahead. Plus, the latest from these six companies; Tesla, Disney, Virgin Money, SQM, and Whitehaven Coal.
Investors are concerned China may tighten Covid restrictions with one region near Beijing (Shijiazhuang) suspending schools, locking down universities and asking residents to stay at home for five days, after cases spiked back to April levels. While investors are also weighing up Fed speakers commentary with Mary Daly saying the Fed will need to be mindful of the lags of rate hikes, while on the other hand she said too much tightening could be “unnecessarily painful” for the economy. However, investors are nervously hanging on the edge of their seats for more Fed speeches on Tuesday and FOMC minutes released on Wednesday, which could provide more hints on how high US rates may go and could likely cause volatility and may stoke fear selling into markets, like we saw last week. As such, the Nasdaq 100 fell 1.1%, while the S&P 500 losing 0.4%. As for big moves in US markets; the biggest loser by market value was Tesla (TSLA) shedding 6.8% after recalling vehicles and anxiety about production and sales falling amid China lockdown. On the upside, Disney (DIS) rose 6.3% after the former CEO who spent more than four decades at Disney was re-hired at CEO.
Oil is again in focus after the WSJ reported OPEC+ is considering rising output by 500,000 barrels ahead of the EU's Russian oil embargo. Later Saudi Arabia denied the allegations and oil price recouped some of its losses. At once stage, brent briefly flipped into contango , after dropping more than 6.1% to below $85 for the first time since September and WTI touched $75/barrel. Demand concerns are picking up again with Covid cases rising in China and stronger US dollar also weighting.
The focus is on the commodity currency, the Aussie dollar, which has slumped back to 66.05 US on concerns that China will announce more lockdowns which may see demand for the AUD slide. We are also watching the AUDNZD – given the NBNZ is expected to hike rates by 0.75% tomorrow and the RBA can’t hike as much- this theoretically supports downside for the currency pair.
For our look ahead at markets this week - Read our Saxo Spotlight.
For a global look at markets – tune into our Podcast.
The end of the road
Emboldened by surging crude oil prices, Saudi Arabia makes waves on the international stage, as Crown Prince Mohammed bin Salman manages to create a World Champions League, after buying the UEFA Champion League franchise.
As the world embraces GLP-1 obesity wonder drugs, the people next in line to get a prescription stop caring about dieting and exercising, figuring that the drug will later solve all of their weight-related health problems.
With the US budget deficit spiraling above 10% of the GDP, the government is desperate to foster demand for US Treasuries. Under intense pressure from the White House, Congress makes income from government bonds tax-free.
After a criminal group deploys the most deceptive AI deepfake ever seen, generative AI becomes a national security threat. With public distrust soaring, governments crack down with harsh new laws, puncturing the AI hype.
To fix the divergence in the global trade and financial system, the largest deficit countries unite to negotiate new world trade terms. For surplus countries, the reset of the global economic model is a painful adjustment.
As discontent with Biden and Trump rises to fever pitch, Robert F. Kennedy Jr sees his support rising inexorably in the polls. On November 5, Kennedy wins the US presidential election, ushering in a new era in US politics.
Stepping up Japan's economic transformation in 2024, PM Kishida brings in a host of populist policies to boost domestic demand. As the GDP growth rate hits 7%, the BoJ is forced to abandons its yield curve control policy.
As people wake up to how little tax Europe’s billionaires are actually paying, the EU Commission implements a wealth tax of 2%. The tax sends shockwaves through Europe's luxury industry, with luxury giant LVMH plunging 40%.