Daily Digest: Wednesday 20th November
UK CPI was the headline data print out of Europe on Wednesday, as traders look to adjust their interest rate bets ahead of the BOE’s final monetary policy meet of 2024 in December. Figures show that during October, UK inflation rose by 0.6%, with year on year CPI at 2.3%. This print came in 0.1 percentage points ahead of analyst expectations and 0.6 percentage points ahead of September figures, a slightly negative shock and step back as inflation surpasses the central banks 2% target level. In terms of markets, it’s likely that traders will begin to par back bets on a December rate cut exceeding 25 basis points, a move indicative of some concern over the continuation of the rate cutting cycle. While the near term equity risk remains minimal, if inflation accelerates the BOE may be forced to tighten policy, increasing rates, and artificially slowing economic performances. The FTSE 100 (FTSE) traded within a relatively narrow range, extending yesterday’s declines, falling 13.95 points (0.17%) to 8,085.17.
Turning to the continent, the STOXX 600 (STOXX) closed down for a third consecutive session this week, falling 0.11 points (0.022%) to 500.49.
US markets continued to exhibit a degree of directional uncertainty, driven by a range of factors from global geopolitics through to domestic political fragmentation. The Dow ($INDU) experienced the strongest gains, rallying 139.52 points (0.32%) ending a losing streak to close at 43,408.47. The S&P 500 ($SPX) saw marginal gains, closing higher for a third session this week, rising 0.13 points (0.0022%) to 5,917.11. The Nasdaq 100 ($NDX) was the only of the three major US indexes to close lower as it fell 17.49 points (0.085%) to 20,667.10
In Asia, Japanese traders lost their footing as the Nikkei 225 (¥N225) fell 62.09 points (0.16%) to 38,352.34, erasing just under one third of yesterday’s gains. Meanwhile, in China, the Shanghai Composite (¥SSE) continued higher as traders built momentum to the upside rising 21.98 points (0.66%) to 3,367.99.
What to Watch Tomorrow
US Unemployment Claims
Eurozone Consumer Confidence
US Earnings
Intuit ($INTU)
John Deere ($DE)
Baidu ($BIDU)
Sources:
https://uk.finance.yahoo.com/world-indices/
https://uk.finance.yahoo.com/commodities
https://www.londonstockexchange.com/indices/ftse-100
https://www.binance.com/en-GB/price/bitcoin
https://www.binance.com/en-GB/price/ethereum
https://qontigo.com/index/sxxp/
Stock Market Activity Today & Latest Stock Market Trends | Nasdaq
https://coinmarketcap.com/charts/#market-cap
https://www.forexfactory.com
Definitions:
YoY - Year on Year, or, Year over Year
MoM - Month on Month, or, Month over Month
QoQ - Quarter on Quarter, or, Quarter over Quarter
ECB - European Central Bank
BOJ - Bank of Japan
Fed - Federal Reserve
BOE - Bank of England
SNB - Swiss National Bank
DOJ - Department of Justice