Daily Summary: US Markets Bounce Back, Oil Prices Surge, and Tesla Leads Tech Gains

9:45 pm 18 November 2024

  • US equities have returned to gains after a bearish week. S&P500 adds 0.43%, Nasdaq gains 0.57%, small-cap Russell 2000 trades 0.31% higher and only Dow Jones spends the session in the red with a loss of 0.15%.
  • European indices trade without a firm direction. We observe losses on German DAX (-0.11%), Italian FTSE MIB (-1.27%) and Polish WIG20 (-0.19%), while French CAC40 gains 0.12% and British FTSE 100 trades 0,57% higher.
  • According to ECB’s Stournaras, a 25 bp rate cut in December is reasonable’ and ‘many others’ will take place, should the inflation keep going back to the 2% target in a steady and predictable manner. On the other hand, the ECB board member warns that Trump’s tariffs could lead to recession in the medium term.
  • EURUSD rebounded from a psychological support of 1.0500 as the post-electoral dollar rally started wearing off (currently at 1.0589). Amid other currencies, NOK and AUD appreciate the most against the USD, GBP shows strength prior to UK’s inflation data, JPY weakens by 0.3% against USD as BoJ’s Ueda doesn’t provide an exact timing of future rate hikes.
  • Johan Sverdrup Outage Drives Oil Prices 3% Up. The incident has impacted global oil markets, with Brent crude futures rising 2.98% to $73.06  per barrel, while U.S. West Texas Intermediate crude climbed 2.8% to $68.89. This price surge comes amid existing market tensions related to the Russia-Ukraine conflict. NATGAS gains 3.8% to $2.92.
  • Bitcoin breaks through the $92k level and retests historic highs despite two days in a row of net outflows from ETFs; now drops below $91k again. Smaller cryptocurrencies on an upward surge; Tezos, Algorand and Stellar gain in the 20-40% range; Ethereum still below $3,200
  • Gold is rebounding today, despite a persistent strong dollar and rising yields. Globally, there are reports of heightened gold demand in India, particularly during the wedding season. Conversely, Chinese jewelry demand has contracted at a double-digit pace since the year began. The price is up 2% to around $2,600 per ounce. Silver gains 3% and reaches $31 per ounce, while Palladium surges 7%.
  • Recent reports revealing overheating problems in Nvidia's new Blackwell server racks have sent the company's shares down 1.6%
  • Tesla stock is gaining 5.6% following reports that Donald Trump’s transition team aims to establish a federal framework for regulating self-driving vehicles through the U.S. Transportation Department.
  • Boeing plans to lay off over 2,200 workers in Washington and Oregon as part of its broader goal to reduce 17,000 jobs globally. The layoffs include hundreds of engineers and production workers, sparking concerns about increased workloads for remaining staff as the company works to revive 737 MAX production following a recent strike.

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