Financial Indicators & Central Banks :

• The US GDP report implied a Q3 productiveness progress enhance to a strong 5.1% from 4.7%, after an unrevised 3.6% Q2 clip. There was a Q3 progress fee trimming for the hours-worked index to 1.0% from 1.1% resulting from weak point within the hours-worked knowledge within the final employment report.
• Fed fee reduce bets deepened because of the dearth of pushback from most Fed officers, and expectations for this pivot continued to drive the markets. There was no influence from the 5.2% GDP print.
• China’s manufacturing sector contracting for a 2nd consecutive month in November and performing worse than forecast signifies weakening momentum regardless of rising authorities efforts to spice up progress.
• EU: French inflation dropped sharply &  German retail gross sales bounced in October. It was the primary actual enchancment since Could, which is probably going additionally associated to the moderation in inflation.

Market Tendencies

• Treasury yields richened additional, and particularly on the entrance finish. Fed funds futures introduced ahead an easing within the coverage fee to Could from June. The curve dis-inverted to -38 bps on the bull steepener.
• Bonds are set to submit the perfect month ever. Concurrently, the speed reduce frenzy has boosted EGBs too, sending the worldwide index to its greatest since 2008 the monetary disaster.
• Shares traded cautiously and misplaced steam into the shut, as a number of Large Tech corporations offset positive factors. The US30 gained 0.04%, whereas the US100 dropped -0.16%, with the US500 off -0.09%. Asian shares have been blended as nicely, with CSI300 including 0.5%.
• Meta fell 2%, Alphabet gave up 1.6% and Microsoft dropped 1%. General Motors surged 9.4% after the corporate introduced an enormous inventory buyback.
• The VIX was up 2.2% to 12.97, recovering from the 12.46 low from final week that had not been challenged since January 2020.

Monetary Markets Efficiency:

• The US Greenback steadied at 102.80, with a 102 deal with for a third straight day. It’s slumped from the October 3 peak of 107.00.
• EURUSD reversed beneath 61.8% Fib degree on July-September downleg, at 1.0945. It stays nicely above 1.09.
• USDJPY retests a possible break of its 146.70 low for a 2nd day in a row, USDCAD extends beneath 1.36 confirming an ascending head and shoulders formation within the day by day chart. 
• Gold edged up 0.16% to $2044.18 per ounce.
• USOIL climbed 2% to $78.79 per barrel forward of the OPEC+ assembly. The delayed assembly of the expanded OPEC+ group shall be held on-line.
• Bitcoin nonetheless hovering close to the $38,000-mark.

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Andria Pichidi

Market Analyst

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