- Sentiment in the European market was mostly positive today. The DAX closed the session nearly 0.7% higher, the CAC40 gained more than 0.6% and the FTSE rose less than 0.3%.
- Shares of Danish company Orsted dipped nearly 25% in the European session today on the back of what could be billions of dollars in losses for the company due to its possible escape from unprofitable wind power projects in the US
- The Federal Reserve kept rates unchanged at 5.5% - in line with market expectations. Investors expect the Fed to cut rates starting in June 2024, and the chances of another hike in December have fallen below 20%.
- Fed chief Powell indicated that Fed policy has become restrictive, and the economy is beginning to respond to it with a slowdown. At the same time, the Fed does not expect a recession but a period of growth below the potential of the US economy
- At the same time, the Fed believes that it will be difficult to bring price stability without a more pronounced weakening of the labor market and the consumer, but is ready to maintain policy at a restrictive level
- At this stage there is no question of rate cuts and the question is rather whether they will rise higher from current levels. At the same time, however, Powell stressed that the Fed has made good progress against price pressures and risks are becoming more balanced
- ISM Manufacturing PMI data came in below forecasts showing a decline in the orders and employment sub-indices. The ADP U.S. labor market report came in slightly weaker than forecast, but JOLTS data came in stronger than expected
- Following the EIA report, which showed a lower-than-forecast increase in crude oil inventories and lower gasoline and distillate readings, WTI crude oil loses 1% - trading under pressure and retreating to the $80 area giving more room for optimism in the stock market
- Zinc contracts are trading up 3% in response to reports from Dutch commodities company Nyrstar, which intends to temporarily shut down crude production at two mines due to unprofitable output. The company cited low raw material prices and the negative impact of inflation in justifying the decision.
- EURUSD reduces the initial declines and records a 0.2% drop carving out a double bottom near the 1.051 level. USDIDX dollar index contracts erase almost completely today's gains
- Yields on 10-year U.S. Treasury bonds came under pressure after the rather dovish tone of Powell's conference and the Treasury Department auction - as a result, TNOTE contracts gain more than 1%
- Bitcoin gains 0.4% and approaches $34,700 - supported by the U.S. dollar, which as well as 10-yr treasuries yields has come under pressure amid the potential end of Fed rate hikes
- AMD shares gain nearly 10% on the U.S. stock market - the company managed to slightly beat Q3 earnings per share and revenue forecasts, but raised expectations for AI chip sales in Q4 2023 to $400 million from $300 million previous estimates, and expects a total of about $4 billion in revenue in 2024 from AI chip sales to take on competition from Nvidia
- China's October Caixin Manufacturing PMI reading came in at 49.5 vs. 50.8 expected. Australia's final manufacturing PMI for October showed 48.2 vs. 48.7 previously
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