Global Market Weekly Report
Summary of the Past Week
US & NORTH AMERICAN Market Weekly Snapshot
Futures on major US indices closed in negative territory for the week. Nasdaq 100 and S&P 500 futures declined about 5% and 4% respectively this week. Dow Jones futures fell around 5% for the week.
Equities fell on the last trading day of the week as some of the most popular tech stocks were under pressure once again, while a steep drop in crude prices also weighed on stocks.
In the Cash Markets, the DJIA and the S&P 500 fell 0.73% and 0.65% respectively on Friday. The Nasdaq Composite closed lower by 0.5%. The DJIA and S&P 500 posted their worst Black Friday performance since 2010.
Facebook, Amazon, Apple, Netflix and Google-parent Alphabet, all closed in negative territory on Friday. These shares fell at least 5.7% through Wednesday’s close.
On the economic front, the Manufacturing PMI (P) for November released on Friday came in at 55.4. The index was below market expectations of 55.8.
US stock markets were closed on Thursday due to Thanksgiving Day.
On the data front, the EIA said in a weekly report on Wednesday that U.S. commercial crude oil inventories rose by 4.9 million barrels to 446.91 million barrels for the week ended 16th Nov. Previously, the EIA reported that U.S. crude inventories rose by 10.270 million barrels for the week ended Nov. 9.
Core Durable Goods Orders change for Oct. released on Wednesday came in at 0.1%. Orders change was below the consensus estimates of 0.4% with a 0.1% growth registered in September.
In news related to Sino-US trade tensions, the U.S. said on Tuesday that Beijing has failed to change its “unfair, unreasonable” practices at the core of the trade spat between the two countries. The findings were issued in an update of the U.S. Trade Representative’s investigation into China’s intellectual property and technology transfer policies, which sparked Washington’s recent tariffs on Chinese exports.
The API reported on Tuesday that U.S. crude inventories fell by 1.5 million barrels for the week ended Nov. 16. Previously, the API reported that U.S. crude supplies rose by 8.79 million barrels for the week ended Nov. 9.
On the economic front, Building Permits number for Oct. released on Tuesday came in at 1.263M-above the expectation of 1.260M.
Data released on Monday reported that U.S. home builder sentiment recorded its steepest one-month drop in over 4-1/2 years in November. The NAHB Housing Market Index (Nov.) released on Monday came in at 60. The index reading was below the market expectations of 67 with the reading being 68 in October.
European & Asian-Pacific Weekly Markets Snapshot
Futures on major European indices closed in negative territory for the week as Brexit fears and Italy’s budget standoff with the European Union continued to unsettle markets. CAC 40 and FTSE 100 futures fell about 2% and 1% respectively for the week. DAX 30 futures shed 1.63% for the week.
On the economic front, the IHS Markit’s Flash Composite PMI for November released on Friday came in at 52.4. The reading represents the lowest level of PMI since late 2014. In addition, the German Government released its final estimate of GDP on Friday. GDP change for the third quarter came in at -0.2% QoQ. The GDP change was in line with market expectations.
In news related to Brexit, the European Union and the UK reached a draft deal that outlined future ties between the EU and UK on late Thursday. This deal followed the previous week’s agreement that laid out key terms of the withdrawal next year in March. The British PM will still need to gain parliamentary approval for the pact, which has split lawmakers.
In news related to Italy’s Budget, the European Union announced on Wednesday that it will sanction Italy with a fine after the country refused to submit a budget proposal that squares with its rules.
Futures on major Asia-Pacific indices ended in the negative territory for the week. Nikkei 225 and SPI 200 futures shed about 1% each for the week. Hang Seng futures fell 0.85% for the week.
Markets in mainland China and Hong Kong slumped on Friday following a report that the U.S. government was lobbying its allies to avoid buying equipment from Chinese telecommunications equipment maker Huawei Technologies, citing security concerns. The benchmark Shanghai Composite Index sank 2.5% on Friday, its biggest percentage loss in a month, while Hong Kong’s benchmark Hang Seng Index shed 0.4% on Friday.
On the economic front, Japanese National Core CPI (YoY) Change for October released late Wednesday came in at 1%. The CPI growth was in line with market expectations, with the same rate of growth seen in the previous month.
Data released on Monday reported that Japan’s Exports rose 8.2% in October from a year earlier, reversing the decline seen in September. Still, Exports growth was below market expectations of 9%.
WEEKLY FOREX UPDATE
The dollar rose on Friday, posting its biggest weekly percentage increase in a month, as risk appetite declined and investors sought the currency’s safety following a steep drop in oil prices that suggested global growth is slowing.
Sterling jumped on Thursday after the European Commission and Britain agreed on a draft text for future EU-UK ties following their divorce.
WEEKLY CRYPTOCURRENCY UPDATE
Bitcoin plunged around 22% for the week ended on 23rdNov. (Friday). Dash lost around 30% for the week. Ethereum fell 32% (approx.) for the week. Ripple fell 14% for the week.
Top 5 Cryptocurrencies by Market Capitalization on 24th November are- Bitcoin, Ripple (XRP), Ethereum, Bitcoin Cash, and EOS.
In major news within the Cryptocurrency Markets, Bitcoin price dropped below $5,000 for the first time in over 13 months on Monday. From 14th to 19th November, the cryptocurrency markets have shed $50 billion and a whopping 23% from its total capitalization to where it stands at $162 billion (on Monday).
In another major news, Crypto startup Paxos is partnering with payments firm BitPay to allow the latter’s merchants to utilize the Paxos Standard stablecoin in settling transactions, according to announcements on Tuesday. The move will give BitPay clients the ability to conduct transactions using a cryptocurrency while maintaining the trust and stability of the U.S. dollar.
WEEKLY COMMODITY MARKET UPDATE
Gold prices held firm on Thursday after hitting the highest in two weeks in the previous session (Wednesday). Gold prices were steady on Tuesday, after moving in a tight range in holiday-thinned trading, holding above the 1,220 level as the dollar was pressured by weak U.S. economic data and a clouded interest rate outlook. Gold prices edged lower on Monday as investors took some profit after the metal rose for four consecutive sessions last week, though the prices were supported by a muted dollar on Federal Reserve’s concerns over the global economy.
Silver fell on Friday to end the week at $14.190 per ounce. The metal lost about 1% for the week.
Crude Oil prices fell on Thursday after U.S. crude inventories swelled to their highest level since December stoking concerns about a global glut but OPEC talk of an output reduction limited losses. Oil markets are entering an unprecedented period of uncertainty due to geopolitical instability and a fragile global economy, the head of the International Energy Agency said on Tuesday.
OPEC ministers meet on Dec. 6 in Vienna to decide on production policy for the next six months amid a growing surplus in world markets.
The Week Ahead (26th-30th November)
US GDP (2nd estimate) for the third quarter is scheduled to be released on Wednesday. The GDP growth is expected to drop to 3.5% QoQ from 4.2% in the previous quarter.
Ten Fed committee members, including Chairman Jerome Powell, will speak at an event on Wednesday. Their speeches will be useful for investors who have been dialing back their expectations for future rate hikes, having noted the cautious tone creeping into policymakers’ comments of late.
FOMC minutes are scheduled to be released on Thursday. The minutes will be key for USD movement this week.
The Canadian GDP for the third quarter is scheduled to be released on Friday. The GDP is expected to fall to 0.3% from 0.7%.
U.S. and Chinese leaders are expected to meet at a G-20 meeting in Argentina at the end of the month (from 30th Nov. to 1st Dec.). Few economists expect the scheduled talks to resolve the trade dispute.
European Union leaders will meet on 25th Nov. to endorse the divorce deal with Britain and a political declaration on the future relationship.
The French GDP for the third quarter is scheduled to be released on Thursday. The GDP growth is expected to rise 0.4% QoQ, the same rate as in the previous quarter.
The Japanese Retail Sales change for Oct. is scheduled to be released on Wednesday. Sales are expected to rise 2.7% YoY.
The Chinese Manufacturing PMI for Nov. is scheduled to be released on Thursday. The index is expected to come in at 50.2 same as in the previous month.
MAJOR COMPANIES EARNINGS CALENDAR
Tuesday– Cranswick, Pennon
Wednesday– Telford Homes
Important Economic Releases (26th –30th Nov)