Daily Market Review – 28.11.2018

Asia

Asian markets were green this morning, the Shenzhen composite a percent 44 and the Nikkei up a percent point 11 on consumer product companies. In Australia construction work contracted by 2.8% after the year’s 2nd quarter, which registered a 1.6% increase.

Europe

European benchmarks all closed in the red yesterday. Consumer confidence in both France and Italy is down 2 to 3 points each so far this November, while with a drop from 10.6 to 10.4, Germany’s hopes for December are not much better. Shop prices in the UK advanced by 1/10th of a % erasing half of October’s loss.

US

The US dollar continues its upward trend on Trump’s promise to add Chinese tariffs come January 11st. We could be looking at a 3rd consecutive quarter of dollar gains unless continuing woes from US indexes curb the FED’s enthusiasm this coming December. Yesterday’s equities surge has tapered off somewhat, as facebook pressures the NASDAQ down to a paltry 1/100th% of an increase, the S&P up a 1/3 and the DOW point 44. The redbook index is up a percent and a ½ year on year, but house prices were down to 5.1%  in September.

Commodities

Oil reacted POSITIVELY to yesterday’s API addition of 3.5 mn barrels. Still, we’re not seeing any major break out of its continuing drop as demand continues to fall and hopes on an OPEC cutback remain slim. Gold continues south on dollar strength, and Bitcoin regained some of the week’s losses as an almost definite support level seems to be forming somewhere in the 3600 region – that’s after a double bottom recorded over the past 3 days.

Events

Ahead today Italy’s producer inflation measure is at 9am gmt. Then mortgage applications in the US at noon followed by the nation’s GDP, inventories and consumption measures at 1:30. At 3:30 the EIA will either confirm yesteray’s API numbers or not, and at 10 to midnight, Japanese foreign investments and retail trade. Jerome Powell’s speech at 5 PM is also something to keep an eye on.

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