Marcus Today Pre-Market Podcast – Tuesday 1st November

US markets saw a little selling pressure last night with the Dow falling 128 points (-0.4%) at 32732. The S&P 500 fell 0.75% to finish at 3872. Nasdaq though fell harder with the index down 1.03% to 10988. October has been a good month for the market with a near 14% gain in the Dow for its best month since 1976. The S&P and Nasdaq gained about 8% and 3.9%, respectively, for October. This is the best October ever. In Europe, Stoxx 50 +0.1%, FTSE +0.7%, CAC -0.1%, and DAX +0.1%. ASX SPI Futures are up 10 points.

Technology and communications stocks were the biggest drags on the broader market. Apple fell 1.5%, and Google’s parent fell 2%. Communication services fell 1.7%. November has historically been one of the strongest months of the year for US stocks. The S&P 500 has experienced an average gain of 0.82% with positive returns 69% of the time, according to data going back to 1983. Morgan Stanley has called for the rally to reach 4000-4150 but now leaning toward the upper bound.

In the bond market, two-year US yields moved higher to around 4.5%. The yield on 10-year Treasuries advanced three basis points to 4.05%. Swap markets are pricing in a 75bps hike this week. JPMorgan is joining strategists who believe the aggressive hiking by global central banks is close to an end. BlackRock said the markets are rallying on hopes that policy tightening is coming to an end, which it thinks is premature. The Bloomberg Dollar Spot Index rose 0.75%.

In commodities, gold slid 0.5%, and Oil was off nearly 2%. Base metals were mostly lower, and iron ore fell also. Bitcoin fell 1.1% to $20,409.

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