MARKET WRAPS
Watch For:
EU New Passenger Car Registrations in Europe statistics; UK
public sector finances; trading updates from CRH, Siemens Energy,
Enel
Opening Call:
European stock futures were muted. Asian equities tracked Wall
Street higher; the dollar fell; Treasury yields were mixed; oil
futures fell and gold rose.
Equities:
Stock futures were slightly higher early Tuesday. Asian equities
advanced after Wall Street's gains overnight amid optimism over
artificial intelligence. Nvidia's earnings later today will also be
closely watched.
Ryan Detrick, chief market strategist at Carson Group, said
"there's still incredible potential" in artificial intelligence.
"Companies like Microsoft and Nvidia, they're clearly capitalizing
on that," he said.
Sentiment is also boosted by expectations that the Federal
Reserve is done raising rates. The minutes of the Fed's last
meeting, to be released later today, will be in focus.
"With a cooling economy easing concerns about another rate hike,
expectations are now, right or wrong, focused on when the Fed may
pivot to cuts," said Chris Larkin, managing director for trading
and investing at E-Trade at Morgan Stanley.
Forex:
The U.S. dollar weakened in Asian trading. There could be an
element of pre-U.S. holiday position adjustment at play, Westpac
said. The USD Index appears to be settling into a steadier
day-to-day bear trend, Westpac noted.
Bonds:
Treasury yields were mixed early Tuesday, and traded near recent
lows on Monday after an auction of 20-year government bonds drew
stronger-than-expected demand, pushing Treasury prices higher.
Meanwhile, investors await minutes of the Fed's November meeting
in an abridged trading week ahead of the Thanksgiving holiday.
Energy:
Oil futures edged lower early Tuesday in a likely technical
correction after futures closed higher for a second straight
session on Monday.
However, growing expectations that OPEC+ may take action at the
group's upcoming meeting, such as Saudi Arabia potentially rolling
over additional voluntary production cuts into 2024, are providing
support, ING said. Speculators won't want to go into this weekend
with sizable short positions, ING added.
Metals:
Gold ticked higher in Asia amid continued bets that the Fed's
rate-increase cycle may be over. Gold and silver should remain
supported on dips on the peak interest-rates narrative, said Fawad
Razaqzada, market analyst at City Index and
https://urldefense.com/v3/__http://forex.com__;!!F0Stn7g!HjvwWiLHVt7GNe44YOuYLgDwqKFy7rC5xciwVdk7IEqVo2HTGKIyvJ-UWLkQo-oXIMgDTjrD56wkUfmNr3saXI4dMK8WHdGy7317C-SDpTg$
.
Precious metals investors are hoping the next Fed rate move will
be a cut, possibly as early as 2Q as signs emerge of inflation
being on a path of slowing toward the Fed's target in the long
term, he added.
-
Copper prices rose amid renewed concerns about tight copper mine
supply. Workers at Las Bambas copper mine are on the second day of
strike while the union plans a new indefinite strike, ANZ said.
Canadian mining and metals company First Quantum plans to shut down
its Panama copper mine later this week due to a port blockade, ANZ
noted.
Meanwhile, increasing optimism around additional Chinese
stimulus measures and the Fed ending its rate-hike cycle lifts
commodity prices broadly, ANZ added.
-
Iron ore advanced as sentiment is boosted by signs of demand
from China as well as potential supply disruptions.
Data from the China Iron & Steel Association suggest that
the country's imports of the steelmaking material are expected to
rise to a fresh record high, Huatai Futures said.
TODAY'S TOP HEADLINES
AI Mania Powered Stocks This Year. Can Nvidia Spark More
Gains?
There is a lot riding on the earnings report this week from
Nvidia, both for the company's ebullient investors and the entire
stock market.
Nvidia has been the big winner of the bet that artificial
intelligence is the next big thing in tech, the so-called AI trade
that surged in popularity after OpenAI's release of its ChatGPT
app. The chip maker's shares have more than tripled this year,
contributing to a sizable portion of the S&P 500's 18%
rise.
DOJ Settles With Two U.K. Reinsurance Brokers Over Ecuador
Bribes
The Justice Department has settled with two U.K.-based
reinsurance brokers that admitted to participating in a scheme to
bribe Ecuadorean government officials.
Tysers Insurance Brokers and H.W. Wood have agreed to enter into
three-year deferred prosecution agreements filed in the Southern
District of Florida.
Israeli Military, Border Residents Press Netanyahu to Eliminate
Hezbollah Threat
LEHAVOT HABASHAN, Israel-In the days after the Oct. 7 Hamas
attacks in southern Israel, Orna Rayn searched frantically for
someone to build a wooden barricade to secure the door of a safe
room in her house about 6 miles from the Lebanon border.
Rayn's sister, Einat Rothem-Nechushtan, moved into the safe room
on Oct. 10, even before the Israeli government ordered the
evacuation of her own small farming community in northern Israel
because of fears of all-out war with Hezbollah, the Iran-backed
army in Lebanon.
OpenAI's Path Ahead Is Unclear as Employees Threaten to Quit
Unless Board Resigns
The future of OpenAI was in jeopardy Monday, as the vast
majority of employees threatened to quit if the board that fired
the company's CEO, Sam Altman, didn't resign itself and restore him
to power.
Microsoft CEO Satya Nadella said late Sunday that the company
was hiring Altman and Greg Brockman, OpenAI's president who
resigned in protest after Altman was ousted, and was opening its
doors to more joining from the company behind viral chatbot
ChatGPT.
Chinese Property Stocks Soar on Hopes of More Supportive
Measures
Chinese property stocks rose sharply Tuesday on hopes for more
supportive policy measures, after a media report said Chinese
authorities are drafting a list of developers that are eligible for
obtaining funding.
The Hang Seng Mainland Properties Index jumped 5.4%. Sunac China
surged 20% to 2.80 Hong Kong dollars (36 U.S. cents), Longfor Group
Holdings gained 7.2% and China Vanke was up 5.3%.
Write to singaporeeditors@dowjones.com
Expected Major Events for Tuesday
06:00/FIN: Oct Labour force survey, incl unemployment
07:00/EU: Oct New Passenger Car Registrations in Europe
statistics (EU27 + EFTA3)
07:00/SWI: Oct Trade Balance
07:00/SWE: 3Q Industrial capacity utilization
07:00/UK: Oct Public sector finances
08:00/SPN: Sep Industrial Orders & Turnover
09:00/ICE: Oct Harmonized CPI
09:00/POL: Oct Average gross wages
09:00/POL: Oct PPI
09:00/POL: Oct Industrial Production Index
10:00/MLT: Oct Registered Unemployed
11:00/FRA: 3Q OECD Quarterly National Accounts: GDP growth
13:00/HUN: Nov Hungarian interest rate decision
23:00/NED: Oct House Price Index
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This article is a text version of a Wall Street Journal
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(END) Dow Jones Newswires
November 21, 2023 00:18 ET (05:18 GMT)
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