European indices ended the day in the green, with German DAX gaining 0.71% and French CAC40 up by 0.42%, inspite of deficit-oriented political turmoil. Austria’s ATX20 also stood out positively, rising by 0.54%, while Italy’s FTSE MIB posted a gain of 0.50%. Today, the U.S. stock market remained closed due to the Thanksgiving holiday.
However, U.S. futures extended the optimistic sentiment seen in Europe, recording gains of around 0.3%.
Germany's CPI inflation rose below expectations (2.2% y/y, forecast: 2.3%). On a month-to-month basis, prices declined by 0.2% (previously: +0.4%), reflecting a continued cooling of the German economy.
The Canadian dollar emerged as the strongest currency today, appreciating 0.13% against the USD, indicating profit-taking after USDCAD hit a 4-year high. Mexican peso also regaiend the ground, adding 0.9% against the USD, following sharp losses due to an announcement from the new Trump administration about plans to increase tariffs on trade with these countries. The British pound adds 0.06% with respect to USD, although it stopped short of a key resistance level near 1.27. The yen, meanwhile, gave up some of its end-of-week gains, depreciating 0.3% against the USD. The USD Index spot performed relaitvely well, adding 0.06%
The euro slightly weakened against the USD after dovish comments from ECB’s Villeroy. He mentioned there are strong arguments for a rate cut in December and did not rule out dropping below the neutral rate in the future.
In the commodities market, gains prevailed. Natural gas prices surged by over 3%, while gold and silver rose by 0.2% and 0.6%, respectively.
Uncertainty over the durability of the recently signed ceasefire pact between Israel and Hezbollah slightly pushed up oil prices. WTI is currently gaining about 0.35%.
Cryptocurrency markets showed mixed sentiment today. Bitcoin is down nearly 1.1%, trading near $95,000. Ethereum, however, is under greater selling pressure, with declines exceeding 2.65%.
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