Daily Market Review – November 22, 2018

It’s Thursday November 22 and this is the market view as we slip into a quiet thanksgiving weekend. We have the OECD downgrading its global growth index to 3.5%  from May’s 3.7 projection.

Asia

Japanese consumer inflation rose a tad in October to 1.4%, while foreign investments decreased  by 180 bn yen – that’s after October’s 362 bn yen increase. Despite a strengthening yen, the Nikkei was one of the few benchmarks to rise overnight, with China’s Shanghai composite down a ¼%.

Europe

More Brexit friction this morning, this time from an unexpected quarter – Spain. The country warns it will veto the bill if the deal extends to Gibraltar, which is a British holding on the Iberian peninsula. Public sector borrowing is up in the UK to 7.95bn pounds – well exceeding expectations. Across the continent, equities continue reacting to the week’s US stocks rout led by the FTSe’s point 7-2% drop.

US

US markets yesterday rebounded, with technology shares pushing the Nasdaq up by nearly an entire percent. Mortgage applications retreated again in November as did durable goods, while jobless claims increased well beyond expectations, and Home sales surprisingly rose. The Reuters Michigan consumer sentiment index is at a 3-month low, and with markets closed for thanksgiving, reactions will only be felt on Monday.

Commodities

Last night, the EIA reported a 116 thousand barrel drawdown from the Cushing reservoirs, but that wasn’t enough to curb the continuing downtrend beyond a slight bleep at the actual moment of the release. Prices continue south, at least until next month’s OPEC meeting, where hopes are that production cuts will be agreed upon. Gold continues its week-long rise crossing 12-30 momentarily during the Asian session as the us dollar relaxes into a sideways trend.

Events

Ahead today, the ECB’s policy meeting minutes are in at noon and a half, followed by consumer confidence at 3. Australia reports PMIs at 10, and japan – at a half past midnight.

 

 

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