- European equities finish at new all-time highs
- S&P 500 and the Nasdaq pop to new records
- BoE unexpectedly left rates unchanged
- OPEC+ sticks to moderate output hikes
Indices from the Old Continent finished today’s session at new record highs, extending gains for a fifth consecutive session, as investors welcomed the latest monetary policy statements by the Federal Reserve and Bank of England. US indexes are trading mostly higher, extending yesterday's upward move caused by the FED decision. The US central bank said it would begin scaling back its monthly bond purchases in November as expected, but signaled it was in no hurry to raise interest rates; while in the UK, policymakers left monetary policy unchanged, dashing investors' expectations for a rate hike. The US100 index rose over 1.15%, extending rally for the 9th straight session, supported by a decline in US government bond yields and upbeat claims data. Meanwhile, the Dow Jones slipped on Goldman Sachs, JP Morgan Chase, and Down Inc losses. The number of Americans filing new claims for unemployment benefits dropped to 269k, the lowest number of jobless claims since the pandemic hit the US economy back in March 2020. Investors now await the highly anticipated NFP report due tomorrow for an update on the labor market recovery. The Czech National Bank surprised analysts today and raised interest rates to 2.75% against projected 2.25%. The president of the Czech National Bank, Jiří Rusnok said that the increase in key interest rates would not be so significant if the Czech government's fiscal policy were not so expansionary.
Oil prices fell more than 1% to the lowest in nearly four weeks after the US government announced it will consider the full range of tools to protect the economy in response to OPEC’s decision to maintain the output growth rates unchanged. Meanwhile, Iran announced that it is scheduled to resume negotiations on a nuclear deal with western nations on November 29th, in a bid to remove US-imposed sanctions, which could increase global oil supplies. Adding pressure on prices, US crude supplies have been rising more than expected for the past two weeks. Precious metals rose sharply during today's session as investors digested yesterday’s comments from the Federal Reserve. Also the Bank of England’s dovish about-face has not affected gold and silver prices, which rose 1.10% and 0.80% respectively. In the forex, the JPY is the strongest of the majors while the GBP is the weakest. Bitcoin fell nearly 2.5% and is currently trading around $ 61,200, while Ethereum pulled back from new all-time high to $ 4,460.
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Gold rose sharply and managed to erase yesterday’s losses. Early in the session price bounced off the support at $1770 which is marked with 61.8% Fibonacci retracement and previous price reactions. Currently gold is approaching psychological resistance at $1800 which is strengthened by a downward trendline. Should a break higher occur, an upward move may accelerate towards next resistance at $1826.53. Source: xStation5
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