Daily Summary: Oil slumps after OPEC+ meeting, GOLD eyes monthly close above $2,000

8:55 pm 30 November 2023

  • Wall Street indices trade mixed during the final session of November. S&P 500 drops 0.2%, Nasdaq trades 0.8% lower, Dow Jones rallies 0.8% and small-cap Russell 2000 adds 0.2%
  • Gold is on the way to book the first monthly close above $2,000 per ounce in history
  • Cryptocurrencies traded mixed today - Bitcoin dropped 0.1%, Ethereum gained 0.6%, Dogecoin jumped 3.7% and Ripple dropped 0.7%
  • CAD and NZD are the best performing G10 currencies while JPY and EUR lag the most
  • European stock market indices finished today's trading higher and booked the best month since January. German DAX gained 0.3%, UK FTSE 100 and Dutch AEX moved 0.4% higher, French CAC40 jumped 0.6%, while Italian FTSE MIB gained almost 0.2%
  • OPEC+ agreed to cut output by an additional million barrels per day. Saudi Arabia will also extend its voluntarily 1 million barrels per day output cut. New cuts announced are for Q1 2024
  • However, oil prices slumped after OPEC+ announcement of additional output cuts as they will be voluntarily and will be announced by countries individually, raising concerns that the cartel failed to agree on anything definitive
  • According to Energy Intel report, Brazil is set to join OPEC+ group, starting from January 2024. Brazilian officials said that the country is considering membership
  • Fed Daly said that it is still too early to know if Fed is done raising rates
  • Fed Williams said that Fed is at or near peak for interest rate target, but warned that if inflation pressures persist, Fed could hike again
  • BoE Greene said that she is concerned a soft landing might go wrong in the United Kingdom and that policy is less restrictive than Bank of England thought
  • ECB Nagel said that it is far too early to discuss rate cuts
  • According to US Energy Information Administration, US oil output increased 1.7% in September and reach a new monthly record of 13.24 million barrels per day
  • US PCE inflation slowed from 3.4 to 3.0% YoY in October (exp. 3.0% YoY), while core PCE inflation slowed from 3.7 to 3.5% YoY (exp. 3.5% YoY)
  • US jobless claims came in at 218k (exp. 220k), while continuing claims came in at 1927k (exp. 1865k)
  • Flash CPI inflation in euro area decelerated from 2.9 to 2.4% YoY in November(exp. 2.7% YoY), while core CPI decelerated from 4.2 to 3.6% YoY (exp. 3.9% YoY)
  • Chicago PMI jumped from 44.0 to 55.8 in November (exp. 45.5)
  • US pending home sales declined 1.5% MoM in October (exp. -2.0% MoM)
  • EIA report showed an unexpected 10 billion cubic feet build in US natural gas inventories (exp. -8 bcf)
  • Atlanta Fed GDPNow forecast for Q4 2023 dropped from 2.1% to 1.8%

WTI (OIL.WTI) erased daily gains as OPEC+ output cut announcement lacked details. Oil is now trading lower on the day but off the daily lows. Source: xStation5

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