The morning market overview, compiled by Dow Jones Newswires:
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+++++ DAILY THEME +++++
The US electric car maker Tesla wants to double its imports of components from India. Indian Trade Minister Piyush Goyal wrote this in a post on the social media platform in Fremont, California. In June, Indian Prime Minister Narendra Modi met Tesla CEO Musk during his first official state visit to the United States. “He (Modi) really cares about India because he is pushing us to make significant investments in India, which we are planning to do,” Musk said after the meeting.
+++++ ECONOMIC OUTLOOK +++++
-U.S
14:30 Consumer prices October
FORECAST: +0.1% yoy/+3.3% yoy
previously: +0.4% yoy/+3.7% yoy
Consumer prices core rate
FORECAST: +0.3% yoy/+4.1% yoy
previously: +0.3% yoy/+4.1% yoy
+++++ OVERVIEW INDICES +++++
Level +/- %
E-Mini Future S&P 500 4,427.50 +0.1%
E-Mini Future Nasdaq-100 15,573.75 +0.2%
Nikkei-225 32,695.93 +0.3%
Hang Seng Index 17,424.69 -0.0%
Kospi 2,433.25 +1.2%
Shanghai Composite 3,053.81 +0.2%
S&P/ASX 200 7,006.70 +0.8%
+++++ FINANCIAL MARKETS +++++
EAST ASIA (HISTORY)
Friendly – There is only little happening on the Chinese stock exchanges; market participants here are eagerly awaiting Wednesday’s meeting between US President Joe Biden and his counterpart Xi Jinping, the first in over a year. The focus will initially be on inflation data from the USA later in the day. The players are apparently betting that inflation will continue to decline, thereby supporting speculation that the peak in interest rates has already been seen – despite recent increasingly hawkish tones from circles at the US Federal Reserve. Stocks from the raw materials sector were particularly sought after in Sydney. BHP, Rio Tinto and Fortescue rose between 1.4 and 2.7 percent. Commonwealth Bank prices rose by 1.0 percent despite a decline in profits in the first quarter. National Australia Bank (-3.2%) traded ex-dividend. The individual stocks in Tokyo rose after quarterly figures were presented for Mizuho Financial (+3.0%) and Japan Post Bank (+0.8%). New figures from Citizen were less well received and the price fell slightly.
US AFTERMARKET
Theseus Pharmaceuticals jumped almost 33 percent. The biopharmaceutical company has reduced its workforce by 72 percent and is now examining strategic alternatives to maximize so-called shareholder value. These include a possible sale of assets, a sale of the company, a merger or other strategic actions. The Electric carStartup Fisker, meanwhile, missed expectations across the board in the third quarter. The price then fell by over 14 percent. Marpai suspended its financial forecasts for 2023 operating results. The health plan expert no longer wants to make specific financial forecasts in the future. The share lost 3.1 percent.
WALL STREET
INDEX last +/- % absolute +/- % YTD
DJIA 34,337.87 +0.2% 54.77 +3.6%
S&P 500 4,411.55 -0.1% -3.69 +14.9%
Nasdaq Comp. 13,767.74 -0.2% -30.37 +31.5%
Nasdaq-100 15,482.79 -0.3% -46.33 +41.5%
Monday – Friday
Turnover NYSE (stocks) 780 million 867 million
Winners 1,403 2,095
Loser 1,456 755
unchanged 101 91
Mixed – After the recent rally that pushed the S&P 500 up 7.2 percent in the past two weeks, there was caution as market players eagerly awaited October consumer prices on Tuesday. They hope that these will send a positive signal that the interest rate peak may have been reached. This speculation had recently driven up share prices. Boeing went up 4 percent. The aircraft manufacturer had announced major orders from Emirates and Sunexpress. Ford fell slightly by 0.4 percent. The negotiated collective agreements in the US auto industry may not yet be in the clear. Mainz Biomed fell by 46 percent to 1.20 euros on the Nasdaq, burdened by a capital increase.
USA – BONDS
Maturity Yield Bp to VT Yield VT +/-Bp YTD
2 years 5.03 -2.1 5.05 61.3
5 years 4.65 -2.7 4.68 65.4
7 years 4.69 -2.4 4.71 71.6
10 years 4.62 -1.9 4.64 74.4
30 years 4.75 -1.5 4.76 77.8
Bonds gained popularity as a safe haven, and yields fell slightly. The market’s focus was on the fact that there was a threat of another lockdown due to the dispute over the US budget and that Moody’s had given the “AAA” rating for the USA a negative outlook. The agency pointed to high interest rates and expressed doubts about the government’s ability to implement effective fiscal policy. The government’s short-term funding deadline is next Friday.
+++++ FOREIGN EXCHANGE MARKET +++++
last +/- % 00:00 Mon, 9:55 am % YTD
EUR/USD 1.0698 -0.0% 1.0699 1.0690 -0.1%
EUR/JPY 162.27 -0.0% 162.29 162.28 +15.6%
EUR/GBP 0.8715 -0.0% 0.8716 0.8738 -1.5%
GBP/USD 1.2274 -0.0% 1.2276 1.2235 +1.5%
USD/JPY 151.69 +0.0% 151.68 151.81 +15.7%
USD/KRW 1,328.38 +0.6% 1,320.29 1,323.22 +5.3%
USD/CNY 7.2937 +1.7% 7.1733 7.2930 +5.7%
USD/CNH 7.2999 +0.1% 7.2923 7.2991 +5.4%
USD/HKD 7.8060 -0.0% 7.8081 7.8099 -0.1%
AUD/USD 0.6370 -0.0% 0.6373 0.6371 -6.5%
NZD/USD 0.5873 -0.1% 0.5876 0.5883 -7.5%
Bitcoin
BTC/USD 36,660.36 +0.5% 36,489.73 37,046.10 +120.9%
YTD based on the closing price of the previous day
The dollar appeared to be just about holding its ground after Friday’s slight declines. The dollar could have a tough time this week, said ING currency analyst Chris Turner. The upcoming inflation data is likely to show a flat development month-on-month, which should initially still be neutral for the dollar. But weak US retail sales could drag the dollar lower on Wednesday. The greenback could also be hurt by uncertainty about whether the US government can avoid a so-called shutdown by the end of this week given the renewed disagreement in the House of Representatives over spending.
+++++ RAW MATERIALS +++++
OIL / GAS
ROHOEL most recently VT-Settlem. +/-% +/- USD% YTD
WTI/Nymex 78.47 78.26 +0.3% +0.21 +1.5%
Brent/ICE 82.71 82.52 +0.2% +0.19 +1.3%
YTD based on the closing price of the previous day
After initial losses, prices for Brent and WTI on the oil market rose by up to 1.8 percent. OPEC had raised its expectations for global oil demand in 2023, saying weak sentiment was exaggerated and the economy was more resilient than previously thought. The oil cartel said in its monthly oil market report that it expects oil demand to increase by 2.5 million barrels per day this year, an increase of 100,000 barrels per day from last month’s report.
METALS
last day previous +/- % +/- USD % YTD
Gold (spot) 1,944.45 1,946.20 -0.1% -1.76 +6.6%
Silver (spot) 22.32 22.38 -0.3% -0.06 -6.9%
Platinum (spot) 872.10 868.50 +0.4% +3.60 -18.3%
Copper future 3.66 3.67 -0.2% -0.01 -3.9%
YTD based on the closing price of the previous day
After the recent period of weakness, the gold price recovered by 0.4 percent.
+++++ REPORTS SINCE MONDAY 8:00 PM +++++
USA – Politics
After a series of revelations about generous gifts to U.S. Supreme Court justices, the Supreme Court has taken aim at an ethics code. The nine judges explained that the adopted code of ethics was largely based on the principles “that we have long considered to be decisive for our behavior.” Most of the rules adopted are not new.
STELLANTIS
is preparing to make severance offers to about half of all U.S. employees. The aim is to save costs in view of the expensive switch to electric vehicles and the increased costs for assembly line workers. It would be the third round of severance payments after one in April of this year and one in October 2022.
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DJG/raz/gos
(END) Dow Jones Newswires
November 14, 2023 01:51 ET (06:51 GMT)