- Wall Street has been doing mixed today since the start of the session. S&P 500 contracts failed to fully stem the downward wave. The US500 is losing 0.1% and the US30 is trading down 0.3% while the US100 is trading flat
- Further weaker-than-forecast macro data from the US has made the scenario of keeping interest rates unchanged and next year cuts more likely, despite mixed signals from Fed members
- Industrial production, on a monthly basis, in the U.S. fell -0.6% versus -0.4% forecast and 0.3% previously. Capacity utilization fell, coming in at 78.9% vs. 79.4% expected and 79.7% the previous month
- U.S. unemployment claims came in at 231,000 vs. 220,000 forecast and 217,000 previously, signaling a cooling labor market
- Cisco Systems (CSCO.US) shares are losing more than 11% today after the company reported disappointing forecasts for expected earnings per share in the next quarter, signaling a weaker order backlog at the end of the year
- Walmart (WMT.US) shares retreated from historic highs today, trading down 8% after its third-quarter results. Although the report itself came in positive against forecasts, the company warned of negative consumer trends seen since late October;
- British FTSE lost more than 1% today, with the CAC40 down more than 0.5%. The DAX fared slightly better, managing to rise 0.3%
- Brent and WTI crude oil are trading near 5% declines amid concerns about demand in China. The market also priced in a higher-than-expected EIA report and a high daily supply of oil in the US domestic market
- J.P. Morgan analysts reported that further production cuts by OPEC+ are not ruled out, but the reports did not affect oil prices
- Israeli Defense Minister Galant reported that the IDF army already controls the western part of the Gaza Strip. Part of the declines in oil may be due to a drop in the geopolitical premium, as the fighting in Gaza has so far failed to elicit a military response from Arab states, and the United States is expected to push China to help resolve the conflict in the region (as the main importer of Iranian oil)
- Natural gas is also trading down close to 3%, where the EIA report indicated 60 bcf of inventories versus 42 bcf forecast and 79 bcf previously
- EURUSD is trading up a modest 0.11%, with the US dollar coming under pressure today amid weaker-than-expected macro readings from the US economy. USDIDX contracts are trading down 0.10% and are trading near 104.1 points
- Precious metals have become beneficiaries of the weakness of the US dollar and weaker macro readings from the US. Gold is gaining 1.3% today and approaching $1,985 per ounce, while silver contracts are trading close to 2% higher
- Cryptocurrencies also retreat today with Bitcoin losing 4%, down from $37,700 level. The largest of the cryptocurrencies is trading at $36,300. At the same time, Ethereum, which is struggling to reach $2,000 loses 3%.
- The SEC dismissed Hashdex's application to create an ETF fund for Bitcoin, and the BTC market is pointing to a significant liquidity gap between $35,000 and $33,000 signaling a possible repositioning, indicating a short-term correction. Avalanche is gaining 10% after news of J.P. Morgan's Onyx adoption
During last 3 weeks, from 27 October lows, US500 gained 10%. Source: xStation5
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