U.S. Equity Markets closed positive yesterday but well-off highs although the Russell made new all-time-highs, managing to hold onto the majority of gains while Treasuries bull flattened. The upside in both stocks and bonds was primarily a response to the market-friendly pick of Scott Bessent as US President-elect Trump’s Treasury Secretary. Bessent is seen as a fiscal conservative and has urged for a phased approach to the implementation of tariffs. The appointment drove the direction of trade with the Dollar initially selling off on the news, but the Dollar Index headed into overnight trading rather flat while the Euro and Swiss Franc outperformed on the pick and the downside in US Treasury yields. Stocks had initially rallied before being sold after the US cash equity open with downside in technology weighing, notably the 4% loss in NVIDI shares. Energy stocks lagged as crude prices slumped on reports that Israel and Lebanon are close to a ceasefire agreement, with reports suggesting a cease-fire for two months will be announced on Tuesday after the Israeli cabinet approves it. This also weighed on gold prices which saw the steepest losses since 2020 while the Canadian Dollar again underperformed in the FX space on the weaker oil prices. Looking ahead, the FOMC Minutes, Richmond Fed, and New Home Sales Units are due on Tuesday, but the focus lies on a busy Wednesday where we see Core PCE (Oct), GDP 2nd Est (Q3), Durable Goods (Oct) and weekly Initial Claims data ahead of the Thanksgiving holiday. The FOMC Minutes will be released this evening at 7.00 pm but will likely be deemed as stale given recent data and commentary. Recent data saw in line CPI but hotter than expected PPI, with attention turning to the PCE data on Wednesday. Fed Chair Powell, after the two data points, said he projects October Core PCE at 2.8%, up from the 2.7% in September. Recent Fed speak has seen Chair Powell state data shows that the Fed does not need to be in a hurry to cut rates, while hawk Bowman has called for a cautious approach. Meanwhile, many others are keeping their options open, waiting for the data to determine the Fed’s decision-making process. The Minutes will be eyed to garner the Fed’s views on the balance of risks to the mandate in reference to the recent cooling of the labour market and the “bumpy” inflation readings. Focus will also be on clues for guidance, but it will likely show policymakers want to keep options open and make decisions meeting by meeting
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For anyone following my Platinum Service it made 40 points yesterday and is now ahead by 2666 points for November having finished October with a gain of 2179 points. September saw a gain of 4402 points following a 301-point loss for August after closing July with a gain of 1918 points while June closed with a gain of 2074 points, having made 1843 points in May. The Platinum Service made 4010 points in April after ending March with a gain of 2113 points. February closed with a gain of 1606 points, after closing January with a gain of 3675 points. December saw a gain of 1890 points after finishing November with a gain of 1734 points. October ended with a gain of 3184 after closing September with a small gain of 228 points, after finishing August with a gain of 1485 points, following a small gain of 285 points gain in July, after closing June with a gain of 2683 points. May closed with a gain of 3205 points. April saw a gain of 3354 points while March closed with a gain of 6168 points. The Platinum Service made a record 9619 points last October. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1900 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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