US Stocks Push Higher Again – Nasdaq up 0.5%
US stock markets pushed higher again in trading yesterday, led by the tech sector, despite the chance of a US government shutdown in the next couple of days. The Dow added 0.15% to 46,316, the S&P 0.26% to 6,661, and the Nasdaq rose 0.48% to 22,591. The dollar and yields pulled back in the face of the possible shutdown, the DXY off 0.22% to 97.94, while the 2-year yield fell 2.2 basis points to 3.621% and the 10-year dropped 3.7 basis points to 4.139%. Oil prices crashed on news of more production increases from OPEC+ in November, Brent off 3.54% to $67.65, and WTI down 3.93% to $63.14 a barrel. Gold surged again to fresh record levels, closing the day up 1.95% at $3,833.55 an ounce.
Gold Continues to Drive Higher
Gold continued its relentless march northwards in trading yesterday as it rose nearly 2% on the day to hit another fresh record high at $3,833.89. The world’s favourite precious metal has now gained over 9% in this month’s trading, and traders and analysts alike are still looking for clarity on what exactly is behind the move. Many feel that this is another huge portfolio reallocation going through from a major player, as even on days when you would have expected a strong fall—for instance, when the dollar has appreciated or geopolitical tensions have eased—gold has remained bid. For now, traders will go with the trend and look for buying opportunities in the market; however, there are some that are waiting for this flow to abate and will look to jump on these all-time levels in the hope of a significant correction.
Lively Calendar Day Ahead for Traders
The macroeconomic calendar kicks into action today, and traders are expecting volatility to remain elevated through to the end of the week and the key US Non-Farm data release. Chinese data is in early focus in the Asian session today, with Manufacturing PMI (exp. 49.6) and Non-Manufacturing PMI (exp. 50.3) numbers due out early in the session. The focus will then swing south to Australia for the RBA’s latest rate call, where they are expected to keep rates on hold at 3.60% as inflation remains sticky. German inflation data is in focus for the London session, with the individual states set to update the market throughout the session, the average month-on-month CPI expected at +0.2%. The New York session sees the first US jobs numbers of the week, with the JOLTS Job Openings expected to print at 7.19 mio, and Consumer Confidence numbers are out at the same time (exp. 96.0). We also hear from more central bankers across the course of the day, with the MPC’s Lombardelli, Breeden, and Mann scheduled, as well as Fed members Goolsbee and Collins.
