The JPY is the strongest and the CAD is the weakest as the NA session begins. The USD is weaker with declines mainly vs the JPY, AUD and NZD. Pimco is buying JPY in anticipation that the Bank of Japan (BoJ) will face pressure to tighten its monetary policy due to rising inflation, as reported by Bloomberg.
This week, traders will scrutinize the Federal Reserve’s November meeting minutes, which maintained interest rates at 5.25% to 5.50%. It’s a notable event in a shortened Thanksgiving week. Additionally, corporate earnings reports from Nvidia on Tuesday after the close, a key player in generative artificial intelligence, and Lowe’s, a major retailer, will provide insights into the U.S. consumer’s state as the holiday shopping season approaches.
Pimco is buying Japanese yen (JPY) in anticipation that the Bank of Japan (BoJ) will face pressure to tighten its monetary policy due to rising inflation, as reported by Bloomberg.
In other stock news today, Microsoft has hired Sam Altman to head a new advanced artificial-intelligence research team, a move that followed the unraveling of Altman’s attempt to return to OpenAI after being removed by its board. Greg Brockman, OpenAI’s president and co-founder, is also joining Microsoft in what is a wild turn of events. The tech giant is firmly committed to its partnership with OpenAI and is ready to provide resources to Altman and Brockman. However, Altman’s return to OpenAI was thwarted, leading to the appointment of Emmett Shear, former CEO of Twitch, as interim CEO. This upheaval caused turmoil among OpenAI employees, with some considering quitting if Altman wasn’t reinstated. Contrary to expectations, safety disputes were not the primary reason for Altman’s removal, as he was seeking a new board and governance structure for the organization. Microsoft, a major investor in OpenAI, holds a substantial stake and is closely linked to the startup’s future. The shift in OpenAI’s board structure, with no remaining members affiliated with major investors, was a key factor in Altman’s departure, leaving him with regrets about board management and loyalty. A wild – made for TV- turn of events. Microsoft shares are trading up $5.89 or 1.59% at $375.60.
As far as the overall, the US stock markets are mixed/little changed as implied by the futures. In the US bond market, yields are higher (near highs for the day).
The oil market is higher due to reports suggesting that major oil producers may discuss deeper output cuts at their upcoming meeting OPEC+ meeting on November 26. The oil cartel, had already pledged significant oil output cuts in previous steps, led by major producers Saudi Arabia and Russia. Those cuts amount to about 5% of daily global demand. Oil prices have dropped by nearly 20% since late September due to concerns about demand growth and reduced worries about supply disruptions in the Middle East related to the Israel-Hamas conflict. However, the gains today come after an over 4% gain on Friday and continued to rise on Monday.
A snapshot of the markets as the NA session gets underway shows:
Crude oil is trading up up $1.43 or 1.88% at $77.47. At this time Friday, the price was trading at $73.96
Spot gold is trading down $7.70 or -0.29% at $1972.75. At this time Friday, the price was trading at $1989
Spot silver is trading down $0.27 or -1.18% at $23.42. At this time Friday, the price was trading at $24.01
Bitcoin is trading at $37,166. Friday, the price was trading at $36,528
In the US stock market, the major indices are trading mixed/lower in pre-market trading – giving up earlier premarket gains. The major US stock indices rose last week for the 3rd consecutive week.
Dow Industrial Average futures are implying a loss of -33 points. On Friday, the index rose 1.81 points or 0.01% at 34947.29. For the week, the index rose 1.94%.
S&P index futures are implying a loss of 3.5. On Friday, the S&P rose 5.80 points or 0.13% at 4514.03. For the week, the index was up 2.24%.
NASDAQ futures are implying a loss of -1.5 points. On Friday, the index rose 11.81 points or 0.08% at 14125.48. For the trading week, the index was up 2.37%
In the European equity markets, the major indices are trading mixed. Last week the indices rose for the 3rd week in a row.
German DAX, -0.37%. Last week the index searched 4.49% which he called the March 27 week move
France’s CAC, +0.06%. Last week the index rose 2.68%..
UK’s FTSE 100, -0.37%. Last week the index rose 1.95%.
Spain’s Ibex, +0.57%. Last week the index rose 4.16%
Italy’s FTSE MIB, -0.21% (10 minute delay)
In the Asia Pacific market, major indices closed lower on the day:
Japan’s Nikkei index, -0.59%
China’s Shanghai Composite Index, +0.46%
Hong Kong’s Hang Seng index, +1.86%
Australia’s S&P/ASX index, +0.13%
In the US debt market, yields are marginally higher after yesterday’s sharp declines
US 2Y T-NOTE: 4.906% unchanged. At this time Friday, the yield was at 4.826%
US 5Y T-NOTE: 4 4.475% +2.1 basis points. At this time Friday, the yield was at 4.396 %
US 10Y T-NOTE: 4.474% +3.4 basis points at this time Friday, the yield was at 4.406 %
US 30Y BOND: 4.67% +3.1 basis points. At this time Friday, the others at 4.583 %
2 – 10-year spread is at -43.1 basis points. This time Friday, the spread was at -42.6 basis points
2 – 30 year spread is at -27.9 basis points basis points. This time yesterday the spread was at -24.6 basis points
In the European debt market, benchmark 10-year yields are trading lower: