Marcus Today Pre-Market Podcast – Monday 21st November

The Dow Jones was up 199 points (+0.59%). At best it was up 282 points, and at worst it was down six points. The NASDAQ failed to kick into gear, closing a single point higher. The S&P 500 gained 0.48%. Ahead of Thanksgiving week this week (a lot of people go on holiday) it was another narrow session with trading volumes around 20% below the 30-day average despite a US$2.1bn options expiry.

US bond yields kicked up again, with the 10-year up 5.2bps and the 2-year up 7.7bps. Fed head comments fuelling the rise, with Bullard suggesting rates need to go to at least 5-5.25%, and Kashkari saying how far the central bank will go is an “open question”. Collins suggested that another 75bps hike could be on the cards for December 14, with little evidence that price pressures are waining. But some strategists suggest that investors are seeing the signs of steadying inflation as an opportunity to take advantage of the Fed easing its rate rise to 50bps on December 14. The US Dollar index rose again overnight, up 0.22%, with the Aussie Dollar slipping 0.09%

In commodities, the oil price was probably;y the main feature, down 2% as global demand fell, leading to the second weekly decline in oil prices - down almost 10%. Brent crude was down 2.35%, and WTI was down 1.98%, for the week, WTI fell 9.98%. Base metals steadied the ship, most were higher, with copper the only loser, down 0.63%. Dalian iron ore was up 0.52%. Coal rebounded again, up 4.40%. Gold was down 0.65%, falling 0.80% for the week. Bitcoin was down 0.57%, it seems like the initial fallout from the FTX drama has washed over.

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