Daily summary: Risk sentiment improves after Powell remarks

7:04 PM November 30, 2022
  • European indices finished today's session higher, with German DAX adding nearly 0.3%, thanks to solid performance of oil, mining and automakers sectors, which continued their rebound. 

  • Euro Area CPI report, which showed inflation slowed for the first time since June of 2021, providing hopes the ECB may deliver a smaller interest rate hike in December. 

  • The Dow Jones is trading 0.20%  higher, while the S&P 500 and Nasdaq rose 0.6% and 1.3%, respectively following latest dovish comments from Fed Chair Powell,  which said the time to slow the pace of rate hikes could come as soon as the December meeting. He also pointed out that the economy slowed down, but inflation is still high and further hikes are required.

  • ADP report showed US employment increased by 127k jobs in November, the least since January 2021, suggesting demand for labor was cooling, while Q3 GDP figures were revised higher to 2.9%.

  • According to a JOLTS report the number of job openings declined to 10.3 million in October. 

  • Tesla reported that its China sales in November nearly doubled thanks to price cuts and incentives offered on its Model 3 and Model Y.

  • OIL.WTI price briefly rose 3% and tested resistance around $81 per barrel as the latest EIA data showed that US crude oil stockpiles dropped by about 12.6 million barrels, the most since June 2019. 

  • OPEC decided to cancel the joint technical committee (JTC) meeting which is a sign that cartel will keep output quotes unchanged at the next meeting on December 4. 

  • Gold pulled back slightly from session high and traders around $1757,while silver is trading over 2.0% higher around $21.80. Earlier in the session buyers failed to break above key resistance at $22.00 despite a weaker dollar.

  • The dollar index fell sharply from session high around 107 and is heading towards daily lows at 106.30. This month DXY fell over 4%, leaving it on track for the biggest monthly fall since September 2010. Currently NZD and AUD are the best performing currencies while USD and JPY lag the most.

  • Major cryptocurrencies also moved higher today. Bitcoin pulled back  after testing resistance at $17,000, while Ethereum jumped to $1275 level.

NZDUSD pair once again jumped above major resistance at 0.6240. Source: xStation5

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