- Wall Street had a relatively muted session following Moody’s downgrade of the US credit rating, and the tech rally took a breather ahead of the US October inflation data. Consensus calls for a sharp decline to 3.3% year-on-year from 3.7% in September for the headline CPI. But the core CPI may stay elevated, which could keep the Fed on its hawkish tone on the interest rate.
- The US dollar was slightly lower against most of the other major G-10 currencies due to a retreat in the US bond yields. The US faces a deadline for the debt ceiling negotiation, which risks a government shutdown at the end of the week.
- Crude oil extended gains for the second straight trading day, but both Brent and WTI futures were below key resistance of the 50-day moving average.
- The Japanese Yen spiked against the USD on bets for the BOJ’s intervention on the exchange rate. This caused a brief plunge of USD/JPY to 151.20 before bouncing back to about 151.70.
- Chinese stock markets rebounded amid APEC summit optimism. Asian stock markets are set to open higher. ASX 200 futures were up 0.99%, and Hang Seng Index futures rose 0.72%.
Chart of the Day:
- Boeing (NYSE: BA) jumped 4.5% after United Emirates Airline announced an order of 55 additional 777X wide-body jets, worth of US$52 billion aircraft. The Chinese government is also considering ending its freeze on Boeing’s 737 jetliners, which is expected to unveil the decision at the APEC Summit in San Francisco.
- Tesla (NDX: TSLA) rose nearly 4% after it updated the terms of its cybertruck order agreement that buyers cannot sell the vehicle within the first year of purchase without Tesla’s permission.
- Nvidia (NDX: NVDA) rose slightly, inches from an all-time high on the nes the chipmaker unveiled the H200, an upgrade of the H100, which is used by OpenAi to train its ChatGPT-4.
- Exxon Mobil (NYSE: XOM) was up 1% after the oil and gas giant unveiled a plan to become “a leading producer of lithium” through a drilling operation in Arkansas, branded as Mobil Lithium. The company’s first lithium production is targeted for 2027.
ASX Corporate Actions:
- NAB is on Dividend Ex-Date. Div: A$0.84. Pay Date: 15/12/23
- New Zealand FPI for October
- Australia’s NAB Business Confidence
- UE Flash GDP
- US CPI for October
Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.