Beijing time on Tuesday (November 15) in early Asian trading, the U.S. dollar index traded around 106.87; the U.S. dollar rose on Monday after the Federal Reserve said it would not ease its fight against inflation, gold prices held steady, and low-sucking buying offset the rise of the U.S. dollar. Silver jumped 1.5% to $22 an ounce, hitting its highest since June 9.
Commodity closing:Brent crude futures settled down 3% at $93.14 a barrel, while U.S. crude fell 3.47% to $85.87. U.S. gold futures settled up 0.4 percent at $1,776.9.
U.S. stock market close:The Dow Jones Industrial Average fell 0.63% to 33,536.7 and the S&P 500 lost 0.89% to 3,957.25. The Nasdaq fell 1.12 percent to 11,196.22.
Preview Tuesday
Global Market at a Glance
Major U.S. stock indexes ended lower on Monday, led by real estate and consumer discretionary stocks, as investors digested comments from Federal Reserve officials on plans to raise interest rates and looked for the next catalyst after last week’s rally in stocks. Earlier, the market saws up and down flat, and the decline accelerated towards the end of the session, and the focus turned to the producer price index report to be released on Tuesday, and the market is highly sensitive to inflation data. Earlier on Monday, Fed Vice Chairman Lael Brainard said the Fed will likely slow the pace of rate hikes soon. This has boosted sentiment in the stock market to some extent. Federal Reserve Governor Waller said on Sunday that the Fed may consider slowing the pace of interest rate hikes at its next meeting, but this should not be seen as a “softening” of its commitment to lower inflation.
Stocks rallied over the weekend, helped by lower-than-expected inflation, and the report boosted investor hopes that the Federal Reserve could soften monetary tightening that has battered markets this year. “People are still very sensitive to what Fed officials say, one a little hawkish and one a little dovish,” said Eric Kuby, chief investment officer at North Star Investment Management Corp.
The S&P 500 posted its biggest weekly percentage gain since late June last week, while the tech-heavy Nasdaq posted its best weekly performance since March. More Fed officials will speak later this week, along with a slew of data, including retail sales and housing data, as well as earnings from major retailers.
Yung-Yu Ma, chief investment strategist at BMO Wealth Management, said, “It makes sense for the market to want to pause, and it’s really all trying to figure out the trajectory (of Fed policy) and what the next driver will be.”
Among the S&P 500 sectors, real estate fell 2.7%, consumer discretionary slid 1.7% and financials fell 1.5%. In company news, Amazon fell 2.3% after The New York Times reported on Monday, citing people familiar with the matter, that it plans to cut about 10,000 business and technology jobs as soon as this week.
Biogen and Eli Lilly rose 3.3% and 1.3%, respectively, after Swiss rival Roche’s trial of a new drug to treat Alzheimer’s disease fell short of expectations.
precious metal
Gold prices held steady on Monday, as bargain-hunting buying offset pressure from a rising dollar after the Federal Reserve said it would not ease its fight against inflation. Spot gold was up 0.1 percent at $1,772.94 an ounce, after falling as much as 1 percent earlier.
Rising U.S. dollar and U.S. Treasury yields have weighed on gold, said Jim Wyckoff, senior analyst at Kitco Metals, adding that bullish buying, encouraged by the previous week’s gains, may have helped gold prices recover slightly. Gold prices are likely to trade sideways in the short term before climbing, Wyckoff added.
Federal Reserve Vice Chairman Lael Brainard said on Monday that the central bank was ready to start raising interest rates in smaller increments, while underscoring the central bank’s “determination” to keep raising rates as long as necessary to combat a surge in inflation. Previously, Governor Waller also made a similar statement.
Fed funds futures traders see an 89% chance of a 50 basis point rate hike at the Fed’s December meeting and just an 11% chance of a 75 basis point hike.
Spot silver jumped 1.5 percent to $22 an ounce, hitting its highest since June 9. Platinum fell 0.3 percent to $1,026, off the previous session’s highest since mid-March. Palladium was steady at $2,040.64 an ounce.
Oil settled around $3 lower on Monday, weighed down by a stronger U.S. dollar and growing virus fears; the dollar also rose against the euro and yen after a policymaker said it had read too much last week’s data showing U.S. inflation cooling Afterwards, investors braced for a possible rate hike by the Federal Reserve.The Organization of the Petroleum Exporting Countries (OPEC) on Monday cut its forecast for global oil demand growth in 2022 for the fifth time since April, and further downgraded its growth forecast for next year, citing mounting economic challenges such as high inflation and rising interest rates.
Oil production in the Permian Basin in Texas and New Mexico, the largest U.S. shale oil basin, will increase by about 39,000 barrels per day in December, the U.S. Energy Information Administration (EIA) said in its productivity report on Monday. day, reaching a record 5.499 million barrels per day.
Separately, U.S. Treasury Secretary Janet Yellen said on Friday that the U.S. is happy to see India continue to buy Russian oil at its own pace without being affected by the G7 price cap, as long as it does not use Western insurance subject to price caps , financial and maritime services.
foreign exchange
The dollar rose on Monday after Fed Vice Chairman Brainard said on Monday that the central bank may soon slow the pace of interest rate hikes and try to figure out how high borrowing costs need to be and how long it should stay there to bring inflation down. “I think there may be a shift to a slower pace of rate hikes soon, but I think what really needs to be emphasized is … we have more work to do,” Brainard said in an interview with Bloomberg News in Washington. to do.”
“It’s really going to be a homework study of the data and trying to assess how much inhibition has been done, how much further inhibition is needed, and for how long, and that’s a judgement before us,” she said.
Following Fed Governor Waller, Brainard is the second Fed official in recent days to say he is ready to start a smaller rate hike as early as the December meeting, while still emphasizing what Brainard calls the Fed’s The “determination” to continue raising interest rates if necessary to combat soaring inflation.
The Fed earlier this month raised its policy rate to a range of 3.75%-4%, its fourth straight hike of 75 basis points, as it seeks to rein in demand for goods, services and labor to reduce more than the Fed’s 2% target triple inflation.
Americans are bracing for higher levels of inflation in the coming years amid expectations of a sharp jump in gasoline prices, a report from the Federal Reserve Bank of New York said on Monday.
In the October survey of consumer expectations, respondents told the New York Fed that as of last month, they now see inflation at 5.9% a year from now, up from 5.4% they forecast in the September survey. Households see inflation at 3.1% after three years, up from 2.9% in September, while inflation in five years is seen at 2.4%, up from 2.2% the previous month.
Fed officials believe that the public’s perception of future inflation has a large impact on current inflation readings. The relatively stable level of inflation expectations, especially over longer periods of time, has given officials confidence that the public maintains confidence in the Fed’s ability to lower inflation over time. “The importance of keeping inflation expectations firmly in check is a fundamental tenet of modern central banks,” New York Fed President Williams said in a Nov. 9 speech. He added, “The news is mostly good — long-term inflation expectations in the U.S. remain clearly solid, broadly in line with what the Fed wants to see long-term inflation.”
The expected growth in household income rose to a record 4.3%, respondents said, while household spending jumped from 6% to 7% in the year ahead. “Households’ perceptions of current financial conditions have deteriorated compared to a year ago,” the New York Fed said, adding that “October’s expectations of household finances for the year ahead also deteriorated.”
Speculators’ net-long bets on the dollar fell to the lowest in more than a year in the latest week, according to Reuters calculations and data from the U.S. Commodity Futures Trading Commission (CFTC) released on Monday. The net long dollar position fell to $2.36 billion in the week ended Nov. 8 from $3.08 billion the previous week. CFTC data also showed that net long bets on the euro rose to 107,599 contracts in the latest week, the most since June 2021, from 105,790 contracts the previous week.
U.S. dollar positions at the International Moary Market in Chicago are calculated based on net positions in six major currencies: Japanese yen, euro, British pound, Swiss franc, Canadian dollar and Australian dollar.
market news
Russian Presidential Press Secretary Peskov said that Russia and the United States held bilateral talks in Ankara at the request of the United States on November 14, and the content of the talks could not be disclosed.
OPEC Monthly Report: OPEC lowered its forecast for world oil demand growth in 2022 to 2.55 million barrels per day.
Fund managers’ “public-to-private” reappearance, more than 200 public fund managers changed jobs during the year
Wind data shows that as of the press release on November 14, a total of 274 fund managers from 124 fund companies have left since the beginning of this year. Among them, ICBC Credit Suisse Fund, Harvest Fund and Bosera Fund with a large number of resigned fund managers have reached 8, 7 and 7 respectively; the number of resigned fund managers of Golden Eagle Fund and GF Fund is 6. According to incomplete statistics, more than 20 public fund managers have chosen to flee this year, including Dong Chengfei, Zhou Yingbo, Cui Ying and many other well-known public fund managers with large management scales.
Global environment deteriorates, Amazon plans to lay off 10,000 jobs this week
Amazon plans to cut about 10,000 jobs across its enterprise and technology divisions as early as this week, people familiar with the matter said, in what would be the largest layoff in the company’s history. The layoffs will be concentrated in Amazon’s devices division, retail division and human resources division. The total number of layoffs is still moving. But if that number remained around 10,000, that would be roughly 3 percent of Amazon’s workforce. Amazon is laying off workers during the critical holiday shopping season, a sign that the deteriorating global economy is putting enormous pressure on it. Amazon will also be the latest tech company to lay off workers, which until recently struggled to retain employees. Earlier this year, the e-commerce giant also more than doubled the cap on cash compensation for its tech workers, citing a particularly competitive labor market.
Russia delivers first crude oil to UAE’s Ruwais refinery
Some traditional buyers in Europe have shunned some of Russia’s crude after the conflict between Russia and Ukraine, but Russia may have found an important new export channel in the United Arab Emirates. Ship-tracking data showed that the Suezmax tanker Tahiti offloaded about 700,000 barrels of Russian barrels earlier this month at Abu Dhabi National Oil Company’s Ruwais refinery after loading from the Arctic export terminal in Murmansk. crude.
China Federation of Things: The express logistics index in October was 99.9%, down 3 percentage points from the previous month
According to data released by the China Federation of Logistics and Purchasing on November 14, China’s express logistics index was 99.9% in October, down 3 percentage points from the previous month. In terms of sub-indices, the Business Express Index and the Rural Express Index dropped by 4.1 and 3.1 percentage points respectively, and fell below 100%; the cross-border dropped slightly by 2.2 percentage points, but above 100%; the employee index and convenience index are also different. degree of decline. On the whole, the domestic economic operation has slowed down this month. The frequent spread of the epidemic has had a certain impact on the production and operation of enterprises. Under the influence of short-term factors, the supply and demand ends of the market have narrowed. At the same time, the consumption and employment markets have improved in the last month. Restricted again, the express delivery index fell back below 100%.
German government delays decision on gas price limits
A German government spokesman said earlier that the government would delay a decision on gas and electricity price caps scheduled for Friday. He said the matter might not be brought to Cabinet this week due to the complexity of the project and the necessary consultations with the EU. However, the spokesman added that they aimed to have the entire project approved by the Bundesrat in early December.
Nuclear energy heating has been started in many places in China to achieve clean, safe and efficient operation
According to the National Energy Administration, nuclear energy heating began to emerge this year. In Shandong, Liaoning, Zhejiang and other places, nuclear energy heating has served surrounding residents. In Haiyang, Shandong, the “Nuanhe No. 1” nuclear energy heating project of the State Power Investment Corporation has recently started low-temperature trial operation. This is also the largest nuclear energy heating project in China. The heating area covers an urban area of nearly 5 million square meters and serves 200,000 residents. In Dalian, Liaoning, the nuclear energy heating demonstration project of Hongyanhe Nuclear Power Station was officially put into operation. This project is the first nuclear energy heating project in Northeast China, with a planned heating area of 242,400 square meters, which will provide winter heating for nearly 20,000 local residents. In Haiyan, Zhejiang, the first nuclear energy heating demonstration project in southern my country, the Qinshan Nuclear Power Nuclear Energy Heating Demonstration Project of China National Nuclear Corporation is under construction. By the end of the “14th Five-Year Plan”, the project will be able to meet the heating requirements of about 4 million square meters. demand, the annual standard coal consumption can be reduced by about 24,600 tons.
US Treasury Secretary: Even if Russia and Ukraine reach a peace deal, some sanctions against Russia may continue
According to the “Wall Street Journal” report on the 13th, US Treasury Secretary Yellen said that even if Russia and Ukraine finally reach a peace agreement, some sanctions against Russia may continue. According to the report, this statement increases the possibility that the United States will suppress the Russian economy for a long time. As the Ukrainian side gains ground on the battlefield, Western leaders have begun to consider how and whether Ukraine can negotiate with Russia to end the conflict. Ukrainian President Volodymyr Zelensky recently said he was open to “real peace talks” with Russia. U.S. officials say any solution will depend on Ukraine.