Morning Wrap: (07.11.2024)

• The effect of Trump's win in the presidential election caused yesterday's session on Wall Street to end with sizable gains in all stock indices. The Russell 2000 gained the most, adding 5.84% on a daily basis. At the same time, the Nasdaq rose 2.95%, the Dow Jones 3.57% and the S&P500 2.53%. 

• Stocks in China and Hong Kong are also gaining despite widespread concerns about Trump's presidency and expectations of further stimulus programs for the economy. At the time of publication, the China A50 is adding 2.3% on an intraday basis.

• Today, futures based on stock indices point to continued gains in the US, despite weaker sentiment in Europe, where futures are seeing declines for the moment. The Nasdaq contract is currently gaining 0.27%, while DAX and CAC40 futures are down 0.25% and 0.2%, respectively. 

• In the morning, an attempt to rebound after yesterday's historic tumble is observed on the EURUSD pair. The key currency pair is oscillating close to the 1.074 zone. At the same time, the USDJPY is holding above the 154.00 level.

• Overall, the Antipodean currencies are performing best at the beginning of Thursday's session, while the dollar and the euro are experiencing a downward correction.

• Investors' attention turns today to the Fed's key decision at 7:00 pm GMT. It is believed that the Federal Reserve will decide to cut interest rates by 25 basis points, thus resuming the monetary easing cycle that has already begun. As is standard, at 7:30 pm GMT we will learn the comments of Jerome Powell, who will start the press conference after the decision.

• That's not the end of central bank decisions for today, however, as Norges Bank, Sveriges Riksbank, CNB and BoE will present their new decisions. 

• The bull market in cryptocurrencies, which knocked BTC to new historic highs today, is waning somewhat. Bitcoin is currently losing 1.2%, nevertheless Ethereum resumed gains and gained 3% today. 

• In the commodities market, we are not seeing excessive price movements today. NATGAS is gaining close to 0.8%. At the same time, WTI crude oil gains 0.02%, gold loses 0.14% and silver loses 0.4%.

Heatmap of volatility currently observed in the forex market. Source: xStation