Summary:
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US stocks look to recoup recent declines
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Thyssenkrupp (TKA.DE) goes up on promising outlook
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Oil remains higher despite inventory build
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Cryptos also take a breather after heavy declines
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Euro mixed after Italian budget rejection
US stock markets are firmly higher on the day in the final session before tomorrow’s Thanksgiving holiday, with the US100 gaining the most ground. Yesterday saw the selling in tech stocks intensify with Apple falling into bear market territory as the wider Nasdaq index (US100 on xStation) dropped to its lowest level since April. On the fundamental front the move higher has likely been aided by what could be seen as a positive developments on the trade front after reports that Peter Navarro is to be excluded from the Trump-XI summit. The reason this is seen as good news for a de-escalation is that Navarro is seen as one of the most hawkish members of the White House on the trade front and, his not being present may be seen to increase the chances of a breakthrough.
IN Europe things are also looking a little more upbeat with all the major indices in the green. Looking into the DAX breakdown it’s worth paying a closer attention to Thyssenkrupp (TKA.DE). The company reported that it expects higher profits next year after the weak performance this year (a decline in full-year earnings). The details presented by the firm suggest that EBITDA from continuing operations ought to exceed 1 billion EUR in the 2018/2019 fiscal year compared to 706 million EUR in the 2017/2018 fiscal year.
Yet another weekly crude oil inventory release from the US has shown a build, with the latest coming in above both the median estimate and also the corresponding private release. The reading of +4.9M was comfortably higher than the median estimate of +2.5M and also last night’s surprise 1.5M drawdown in the API equivalent. The rise is a staggering 9th consecutive increase, but it should be noted that the size of the increase is actually not that high compared to recent prints with only 1 of the last 8 showing a smaller rise. In terms of market reaction price dipped back on the release but has since embarked off on a rally,taking out the high of the day with Oil trading up by 3.2% on the European close.
The cryptocurrency market is recovering after steep falls seen in recent days. The greatest loser of yesterday’s sell-off has gained so far today. Bitcoin (BITCOIN on xStation5) has gone up over 5.5%, and Ethereum (ETHEREUM on xStation5) has risen nearly 6%. However, the scale of increases could be described as moderate in comparison to huge losses seen previously. Despite today’s gains the capitalization of the whole market sits just around the $150 billion handle. Note that it started the month with value above $200 billion.
Finally it’s been a mixed day on the whole so far for the Euro after the European Commission rejected the revised Italian budget saying that the draft document is in serious non-compliance with EU rules. The excessive debt procedure may now be applied to Italy and the European officials already said it is warranted. Nevertheless, the Italian government maintains that its budget proposal is completely valid. EURUSD broke above the 1.14 level around lunchtime but has since treaded water and remains little changed on the day.
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