- Wall Street index futures are losing between 0.5% and 1%. The VIX volatility index is trading up 5%, in response to growing demand to hedge risk against a potential spike in volatility after the US session (Nvidia results)
- USDIDX dollar index futures are trading up 0.5%, with 10-year U.S. Treasury bond yields rising 3 basis points to 4.41% today; EURUSD loses more than 0.5% to 1.054
- Fed Michelle Bowman indicated that the Fed should be more cautious in easing policy, as the effects of fighting inflation are slowly evaporating while it has not reached its target, and the neutral interest rate in the U.S. economy is now likely to be much higher than the 2% once expected
- Comments from Lisa Cook of the Fed also indicated caution, as she made it clear that further rate cuts would only be warranted if the baseline scenario (further decline in inflation) materializes
- We are seeing a clear pullback in semiconductor stocks. Susquehanna analysts downgraded Qualcomm to $210 from $230 previously, pointed to disappointment over recent press conference with the company
- Shares of Eli Lilly gain 3% (along with Novo Nordisk) after WSJ reported on the activity of the company's sales representatives, who are presenting to private companies and US labor unions the benefits of subsidizing the GLP-1 obesity drug treatment for employees
- Henry Hub natural gas (NATGAS) contracts gain 8% today supported by a change in US weather forecasts for late November/early December; NOAA's forecast indicates much lower than expected temperatures
- Oil is trading down 0.5%, with today's EIA data indicating a higher-than-expected increase in US inventories.
Crude inventories: 0.545 million brk (expected: -0.085 million brk; previous: 2.089 million brk)
Gasoline inventories: 2.054 million brk (expected: +0.75 million brk; previous: -4.407 million brk)
Distillate stocks: -0.114 million brk (expected: +0.4 million brk; previous:-1.394 million brk)
- Gold is gaining nearly 0.7% in response to rising political tensions and risks to the global economy going forward, which could be hit by US tariff policies.
- On the other hand, opinions on the subject are divided, Goldman Sachs CEO Solomon indicated that Trump's proposals are more likely to fuel economic growth. Silver, however, is trading down, with palladium and platinum also losing ground
- Bitcoin is correcting gains after reaching $95,500, currently priced at $94k; Microstrategy shares are trading up 13%, and volume data shows record interest in the stock, with trading volumes in recent days approaching Microsoft and Nvidia. According to as yet unconfirmed media reports, Trump's team is considering creating the first ever White House role related to cryptocurrencies.
Source: xStation5
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